Uniswap (UNI) turned into one of the most active DEX, as decentralized projects gained more attention in 2024. Uniswap added a record number of new assets, based on additional mints of small-scale meme tokens.
Uniswap handled 300% more tokens in July 2024, compared to the same month in 2023. Over the years, Uniswap added more assets gradually, but saw a more dramatic boom in the past 12 months.
The Uniswap DEX handled more than 725K distinct tokens, based on pricing and on-chain data. New projects and tokens also shortened the time between the initial idea and the launch of trading. In 2024, rough estimates saw a creation of more than 1M new tokens.
Uniswap runs versions on 21 chains, and is uniquely positioned to tap Ethereum-based tokens, as well as L2 tokens. The Uniswap token boom competes with Solana’s Raydium listings. The Uniswap Foundation commented that the recent growth in traded tokens reflects user-generated markets, with no central authority to approve or list the tokens. At the same time, some projects see a Uniswap listing as additional exposure.
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The growth of token-based activity is turning DEX into important fee-generating protocols. High fees and revenues, especially with some form of community sharing, answers the question of the intrinsic value of digital assets.
Uniswap fees are now more than $12M in a week, outpacing all other exchanges. Monthly active users tripled the end of June, signaling additional growth in DEX trading. Currently, Uniswap V3 is the most active version of the DEX, with more than $3.8B in value locked. The recent growth of Uniswap also hinges on the Base exchange and the ease of generating smart wallets. More than 65% of Uniswap pools are now on the Base chain version.
As of July 2024, Uniswap also carries $5.21B in value locked, growing in the past few weeks. Uniswap’s value peaked at just under $10B, and the DEX may recover its previous record if the bull cycle continues.
Uniswap prepares for V4 adoption
Uniswap aims to turn into an even more solid staple among DEX apps. The V4 launch has no hard and fast date, but is scheduled for some time in the fall of 2024.
Recently, Uniswap engineers presented the capabilities of V4. One of the main technologies will be the so-called hooks, which will be a way to direct trades and liquidity for the optimal performance of tokens.
🔥 v4 Update@Uniswap Lab's Protocol Engineer, @hensha256 discussed the evolution of the Uniswap Protocol, and how v4 will continue to evolve it. pic.twitter.com/kIzYy1UtNR
— Uniswap Foundation (@UniswapFND) July 15, 2024
While Uniswap has offered fair access to all tokens, trading on a DEX contains hidden risks, including liquidity shifts or concerted bot attacks.
Uniswap has seen multiple sandwich attacks since the previous bull market in 2021. Some of the high-profile attacks targeted more than $25M in value. The hooks technology will aim to limit attacks, while simulating order books.
On the negative side, Uniswap still hopes the US Securities and Exchange Commission (SEC) will drop its lawsuit and not demand fines. The SEC has been going against lending protocols and DEXes, claiming that liquidity pools are unregistered exchanges. Uniswap countered with the fact that it never takes custody of funds. Uniswap remains a strong proponent of “not your keys, not your coins”.
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Uniswap aims to launch a new version, UniswapX, which will also perform cross-chain swaps with optimal routing. Cross-chain DEXes are one of the trends in 2024, aiming to tap the most favorable liquidity conditions, with the lowest possible fees.
On top of the overall success of Uniswap, UNI is sometimes seen as an undervalued token. UNI traded at $8.10, still in the green for the past 12 months. UNI peaked in 2024 at around $14, but has since grown its trading volumes more consistently.
Cryptopolitan reporting by Hristina Vasileva