Uniswap DEX comprises 37% of Ethereum L2 volume

The
leading
Ethereum
decentralized
exchange,
Uniswap,
contributes
substantially
more
volume
to
layer
2
blockchains
compared
to
the
activity
seen
two
years
ago.

The
decentralized
exchange
(DEX)
accounts
for
around
37%
of
the
total
trading
volume
on
layer
2
while
running
atop
crypto’s
second-largest
blockchain,
Ethereum
(ETH). 

21.co
researcher
Tom
Wan
noted
that
the
platform’s
L2
volumes
experienced
more
than
650%
growth
in
24
months,
increasing
from
around
$4
billion
in
2022
to
over
$30
billion
this
year. The
analysts
added
that
this
trend
could
strengthen
even
further
if
more
quality
protocols
launch
on
layer
2
networks
like
Arbitrum,
Coinbase’s
Base,
and
Optimism.

“L2s
have
been
gaining
more
economic
activities,
specifically
Base
and
Arbitrum,
which
account
for
82%
of
the
total
L2
volume
on
Uniswap.
I
would
expect
the
dominance
of
L2s’
volume
on
Uniswap
will
continue
to
grow
to
50%
by
the
end
of
this
year.”

Tom
Wan,
21.co
researcher

Data
showed
that
the
exchange
has
only
contributed
2.9%
of
the
total
volume
on
altcoin
L1s,
but
Wan
opined
that
this
narrative
may
see
a
shift
in
the
future. Wan
explained
that
high-performance
EVM-compatible
L1s
combined
with
a
multichain
expansion
strategy
could
allow
the
DEX
to
capture
more
volume
on
networks
like
Sei
and
Monad. 

Crackdown
on
Uniswap

Uniswap
(UNI)
was
the
first
DEX
on
Ethereum
and
remains
the
largest
on-chain
trading
venue
on
the
crypto
L1
blockchain.
The
protocol

boasts
over
$2
trillion
in
cumulative
trading
volume
in
17
chains.
DefiLlama
states
users
have
also
deposited
more
than
$5.5
billion
in
total
value-locked. 

Founded
in
2017
by
Hayden
Adams,
the
Brooklyn-based
crypto
service
provider
now
faces
possible
enforcement
action
from
the
U.S.
SEC,
which
is
currently
embroiled
in
a
broad
crypto
industry
crackdown. 

As
crypto.news
reported,
the
SEC

served
Adams’
business
a
Wells
Notice,
and
the
DEX
intends
to
defend
itself
against
a
“disappointing
but
not
surprising”
decision.