UNI struggles to find a firm footing as Uniswap leaps forward. Assessing…
Journalist
Posted:
- Uniswap was the king of the DEXes after managing to outperform rivals by a mile.
- Uniswap, at press time, struggled to sustain bullish demand despite signs of a local bottom.
Decentralized exchanges (DEXes) continue to demonstrate intense competition even during slow market phases. Uniswap [UNI], in particular, managed to maintain a solid lead against the competition.
How many are 1,10,100 UNIs worth today
One key area that highlighted Uniswap’s dominance was the amount of fees collected by DEXes. A recent analysis of DEXes reveals that Uniswap blew the competition out of the water just by the measure of fees it collected in the last six months.
To put things into perspective, Uniswap’s daily cumulative fees for the last six months peaked at $255.5 million.
DEXes (decentralized exchanges) listed by fees generated over the last 180 days:
1) Uniswap $255.5 million
2) PancakeSwap $31.6 million
3) SushiSwap $23.1 million pic.twitter.com/yDPgWQwItU— Reflexivity Research (@reflexivityres) September 27, 2023
PancakeSwap came in second with $31.6 million in daily cumulative fees. This meant that Uniswap fees surpassed those of PancakeSwap by sevenfold. This difference highlighted the magnitude of Uniswap’s lead in the market.
Most of the top DEXes, especially Uniswap, have been benefitting from the success and strong activity in Ethereum layer 2 networks. Base is one of the latest additions to the list of L2 networks and Uniswap was among the first DEXes to embrace it. Fast forward to the present and Base has contributed as much as $270 million to Uniswap in trading volume.
Uniswap was one of the 1st DEXs launched on Base & now has over $270M in trading volume!#ScalingSummer wraps up with @BuildOnBase 🔵 Don’t miss the last @layer3xyz quest, hosted by Uniswap!
There’s something special coming if you’ve done them all 😉https://t.co/vA5uDCgFoI
— Uniswap Labs 🦄 (@Uniswap) September 26, 2023
Uniswap registered a surge in activity in the last six months
Uniswap’s impressive fee growth was certainly not a fluke but rather the result of a surge in network activity and organic growth. A glance at active addresses in the last six months revealed a surge in network activity from mid-May to the last week of July. Similarly, the network had its highest spike in transaction count in June.
Source: Santiment
The surge in on-chain activity on the Uniswap DEX was particularly more pronounced Uniswap V3 transactions. The latter saw its highest activity between June and August. Although, the latest spike in the third week of September confirmed that transaction activity was still high.
Source: Glassnode
So, how has the UNI token faired amid this surge in transactions and fees? Well, UNI was still struggling to secure enough bullish momentum to exit September’s low range. This was despite signs of accumulation in the second half of the month.
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UNI exchanged hands at $4.24 at press time. The slight premium from its current monthly low confirmed that there was a substantial accumulation earlier this month. Furthermore, the Money Flow Index (MFI) and the Relative Strength Index (RSI) supported these findings.
However, it was pretty evident that the bulls weren’t strong enough to rocket out of the current bottom range.
Source: TradingView
