Here’s why Uniswap’s DEX race isn’t run just yet despite July

Uniswap, at press time, had accu­mu­lat­ed a sev­en-day trad­ing vol­ume of $9.7 bil­lion. In doing so, it has con­tin­ued to dom­i­nate the DEX space. In fact, Uniswap’s dai­ly trad­ing vol­ume just exceed­ed Coin­base recent­ly. This fur­ther goes on to illus­trate the grow­ing promi­nence of DEXs in the space.

Despite such growth, how­ev­er, is Uniswap well-equipped to ward off chal­lenges from close com­peti­tors such as Curve Finance?

Only way is UP

Recent on-chain data has emerged that goes on to solid­i­fy Uniswap’s dom­i­nance in the mar­ket. Despite the Q2 ambush, Uniswap set a 2022 mile­stone of 1920 new users on the pro­to­col in May. On 7 and 8 May, there were almost 2K new users, but the num­ber fell dras­ti­cal­ly as ETH’s price fell drastically.

How­ev­er, user growth was preva­lent across July as net­work activ­i­ty grew mul­ti­fold dur­ing this peri­od. The aver­age user has since increased to 100 too, with the same grow­ing steadily.

Source: Dune Analytics

There are almost 6 mil­lion users who swapped tokens. Almost 1/3rd of them (1.92 mil­lion) used Uniswap V3 and 96% of them (1.86 mil­lion) only swapped. Only 3% of the Uniswap V3 swap users pro­vid­ed liq­uid­i­ty. 2-% of the total liq­uid­i­ty providers only pro­vid­ed liq­uid­i­ty and did not use the swap feature.

Source: Dune Analytics

NFT trades on Uniswap V3 have reg­is­tered sig­nif­i­cant growth since the onset of the third quar­ter. The trad­ing vol­ume here crossed 533k in mid-July, set­ting a new record recently.

Source: Dune Analytics

Fur­ther­more, the week in ques­tion coin­cid­ed with Blockchain.com launch­ing the UNI token on its plat­form. Mean­while, UNI has also seen an accel­er­a­tion in whale accu­mu­la­tion recent­ly. Accord­ing to Whale Stats, UNI also flipped INU as the most trad­ed token among the top 500 Ethereum whales.

Where’s the token in all this?

At the time of writ­ing, UNI was trad­ing at around $8.25 after bull activ­i­ty con­tributed to a 22.5% hike this week. This puts UNI around 150% up from its low­est ebb this year. Even so, UNI did see a rare decline this week as it dipped by 5.64% in 24 hours.