Uniswap Leads Layer 2 Adoption on Ethereum
Uniswap, the decentralized DEX, is establishing itself as the main application on Ethereum in terms of gas and block space usage, thanks to Layer 2 (L2) solutions that reduce costs and concentrate liquidity.
Prior to the Dencun hardfork, Uniswap users on L2 experienced significant improvements compared to the Ethereum mainnet. L2 increases trading profitability and liquidity supply by offering at least 75% more liquidity concentration and lower gas costs. Even though Ethereum accounts for only 25% of the number of transactions, 60% of the volume comes from other chains.
The research highlights that individual users and retail liquidity providers perform better on L2 like Arbitrum. The ongoing shift to L2, supported by increased security and lower costs, benefits both Ethereum and L2s, encouraging the full potential of decentralized markets.
Like for DYOR and more! 👍
