Uniswap is the most widely used Layer 2 decentralized exchange (DEX) built on Ethereum and currently accounts for approximately 37% of total L2 trading volume.
This represents a notable increase compared to trading volumes two years ago.
Uniswap L2 volume spikes over 650%
Tom Wan, a researcher at 21.co, noted in a post on This increase has increased its trading volume from about $4 billion in 2022 to more than $30 billion this year.
.@Uniswaptrading volume is increasing on L2 and now accounts for 37% of total trading volume.
Since 2022, Uniswap's L2 trading volume has increased from $4 billion to $30 billion (+650%). Uniswap’s L2 volume in 2022 will be only 5.2% of total volume
L2 is increasing further… pic.twitter.com/PR7GT9xdih
— Tomwan (@tomwanhh) April 29, 2024
Wang suggested that this trend could become even stronger, especially with the introduction of higher quality protocols in Layer 2 networks such as Arbitrum, Coinbase's Base, and Optimism.
According to Wan, L2, particularly Base and Arbitrum, has witnessed a surge in economic activity, accounting for 82% of Uniswap's total L2 volume. Wan expects Uniswap's L2 volume dominance to grow to 50% by the end of the year.
Although Uniswap only contributes 2.9% of the total layer 1 volume of altcoins, Wang believes this story has the potential to evolve. He explained that a high-performance Ethereum Virtual Machine (EVM) compatible Layer 1 combined with a multi-chain expansion strategy could allow DEXs to capture more volume on networks such as Sei and Monad.
Uniswap, Ethereum's first decentralized exchange, continues to maintain its position as the largest on-chain trading venue on the Ethereum Layer 1 blockchain. This protocol has facilitated his cumulative trading volume of over $2 trillion across 17 chains. According to data from DefiLlama, users have deposited more than $5.5 billion in total value locked with Uniswap.
Uniswap faces SEC regulatory pressure
Despite Uniswap's continued success, it faces regulatory pressure from the U.S. Securities and Exchange Commission (SEC) as part of a broader regulatory crackdown on the crypto exchange market.
The SEC issued Uniswap with a Wells Notice of potential enforcement action. Despite this development, Uniswap intends to defend itself against the decision, which it considers “unfortunate but not surprising.”
The lawsuit comes amid widespread criticism from the crypto industry of the SEC's approach. Many argue that the SEC is acting in bad faith. Critics claim that the SEC is pursuing enforcement actions without considering the unique characteristics of blockchain-based technology in the cryptocurrency space.
In response, SEC Chairman Gary Gensler defended the SEC's actions, arguing that existing securities laws are clear and that the cryptocurrency sector is not complying with its request for special treatment.
Meanwhile, UNI is trading at $7.68, up 0.9% in the past 24 hours but down 6% in the past week.
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