Uniswap, the leading DEX protocol in the DeFi world, has just surpassed the threshold of 2 trillion dollars in volume processed on the Ethereum blockchain.

This is a significant milestone for Uniswap that further strengthens its position in the web3 world, in view of some new integrations and future upgrades.

In the meantime, UNI, the governance token of the protocol, sees a new opportunity for appreciation in the crypto market.

All the details below.

The success of the Uniswap protocol on Ethereum: new record of volume generated

In June 2022, Uniswap reached for the first time the milestone of $1 trillion in volume processed on Ethereum, just 4 years after the official launch of the protocol in 2018.

Today the industry-leading platform DEX marks another milestone in its journey by surpassing the 2 trillion dollar mark in volume on the main L1.

Uniswap itself shared on X the milestone achieved, highlighting the positive traction recorded in the crypto world in recent years.

The metric was extracted directly from the analysis platform Dune.

This feels like a big deal:

Uniswap Protocol just crossed $2T in all-time volume on Ethereum L1 pic.twitter.com/5SOu9UxUFf

— Uniswap Labs (@Uniswap) October 21, 2024

Reaching a similar trading volume means playing a fundamental role in the dynamics of decentralized trading.

Outside of Ethereum, the Uniswap protocol is very present on the chains of Arbitrum, Polygon, Base, Optimism, BSC, and Avalanche.

Consider that on Arbitrum, in just 1 year and 6 months since the mainnet launch of the layer-2 chain, Uniswap has managed to attract a volume of 180 billion dollars.

Thanks to these numbers, the DEX protocol, in addition to becoming a point of reference for the web community, has managed to collect a large sum of fees.

In total since its debut, Uniswap has earned nearly 3.5 billion dollars in fees on the Ethereum mainnet.

According to the data from Token Terminal, the revenue of Uniswap Labs is around 62 million dollars.

In May 2021 the DEX recorded the day with the highest fees, amounting to 18 million dollars. In August 2024, however, it processed transactions for a record volume of almost 2 billion dollars in a single daily trading session.

Incoming Uniswap V.4 version and Ethereum Unichain layer-2: possible increase in DEX volume expected

The achievement of the 2 trillion dollar volume target on Ethereum represents only a formal act that celebrates the successes of the Uniswap protocol.

The exchange platform will soon introduce its own V.4, which should offer greater flexibility and efficiency in trading operations.

In particular, the new implementation will open up new possibilities in the field of creating liquidity and token exchanges on the blockchain.

To this is added the scheduled launch of Ethereum’s layer-2 chain Unichain, which will help support the scalability issue on L1.

Announced a few days ago, Unichain, will be driven by fast blocks, cross-chain interoperability, and a network of decentralized validators.

The protocol thus expands its presence in the world of cryptographic networks, competing with the other 110 layer-2 solutions of the Ethereum ecosystem.

Introducing @unichain — a new L2 designed for DeFi

Fast blocks (250ms), cross-chain interoperability, and a decentralized validator network

Built to be the home for liquidity across chains pic.twitter.com/lqfJh6Ltio

— Uniswap Labs (@Uniswap) October 10, 2024

All these new features will definitely have a positive impact on Uniswap and on the market share of crypto exchanges.

Despite the application still being much less used compared to CEX leaders like Binance and Coinbase, it remains a respectable alternative.

Considering that in the last 24 hours it has attracted volumes of over 1 billion dollars, it ranks 6th in the ranking of the most used exchange.

Thanks to its strong expansion in recent years, Uniswap has managed to bring the DEX sector to gain ground against centralized counterparts.

If we look at the chart “DEX to CEX Spot Trade Volume (%),” we can easily notice the trend that has been occurring in recent years.

In January 2021, the market share of DEX was just 3.8%, while today it reaches 14.1%, thanks almost exclusively to Uniswap.

UNI: the protocol’s token could grow well in bull market

The increase in trading volumes on the Ethereum mainnet and the new integrations planned for the Uniswap protocol could favor the appreciation of the UNI token.

The cryptocurrency, the native asset of the ecosystem with governance functions, is indeed in the spotlight of many crypto traders in recent weeks precisely because of these innovations.

With the launch of Unichain, it would indeed also take on functions as a gas token, increasing its attractiveness in the market. 

Thanks to the inauguration of the Uniswap V.4 version, the protocol would support token creators and liquidity providers by expanding the user base of UNI.

At the moment, the currency boasts a market capitalization of 4.85 billion dollars, placing it at rank #23 in the CoinMarketCap ranking.

In total, the supply of UNI is 1 billion units, bringing the overall valuation of the project to 8 billion dollars.

Launched in September 2020, the token of the Uniswap protocol immediately gained the respect of the Ethereum ecosystem by recording remarkable performances.

In the middle of the last bull market, it increased its price by 1900% accompanied by a substantial trading volume.

Now, after going through a long bear market phase (losing up to -90%), it is ready to move towards new bullish targets.

The first hurdle for Uniswap will be to overcome the resistance of 10 dollars, and then aim for the break of 12.5 dollars.

Attention to the support of the EMA 50 on the weekly time frame as it acts as a base for the activity of the bull: its break could delay the potential bullish trend.

The trading outlook for UNI still seems particularly positive at this moment.