The world’s largest decentralized exchange Uniswap keeps growing and the newly-launched third iteration has now surpassed version two in terms of daily trade volumes.
In addition to v3 topping the daily transaction volume of v2, both have individually surpassed BTC in terms of daily fee generation. The move was observed by Uniswap UNI founder Hayden Adams who commented that both versions are earning more daily and weekly fees than Bitcoin BTC miners.
Data from Cryptofees showed that Uniswap v3 version, which was launched on May 5, generated $4.5 million with v2 generating $3.8 million in fees for the day. Bitcoin BTC was behind both of them at the time with $3.7 million in daily fee generation.
At the time of writing, the site was reporting that Uniswap v3 version generated $4.1 million in the current 24 hour period of time whereas v2 is in second place with $3.2 million. SushiSwap project is the next largest DEX after Uniswap with $2.135 million. Bitcoin BTC and Ethereum ETH estimates were not available for the past 24 hours but the previous day's fees on Bitcoin BTC hit $2.821 million, while Ethereum ETH raked in $28.71 million.
Critics often blame high Ethereum ETH gas fees on Uniswap UNI for being responsible, but the revenue figures are actually swapping fees paid to liquidity providers rather than gas fees.
In terms of daily transaction trade volumes, v3 has now surpassed v2 with $1.48 billion over the past 24 hours period according to Uniswap’s technical analytics page. Version 2 had a reported daily trade volume of $1.1 billion. For total value locked, v2 still dominates with $5.8 billion compared to a volume of $1.46 billion on v3.
On May 20, the Cointelegraph site reported Messari's prediction that v3 volume would surpass v2 by this month.
Uniswap’s success has been so prominent that the finance industry bible The Wall Street Journal has picked up on it, suggesting the DEX and others like Uniswap posed a growing threat to Coinbase. A report on May 24 stated that Uniswap UNI had a volume of $36.6 billion in April, compared with $110 billion at Coinbase exchange.
It added that Coinbase exchange-listed competition from decentralized exchanges as a potential business risk before going public last month.
It may not end up as a situation but end up with 'both' benefiting. Adams predicted that centralized exchanges would eventually tap into Uniswap’s UNI liquidity pools, “essentially becoming front-end interfaces with slick apps and websites that rely on Uniswap UNI behind the scenes to power trading.”
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