- Uniswap also generated over $90 million in fees during the month, securing its position as the sixth-largest protocol by fee revenues.
- Uniswap’s native token, UNI, gained 38% in the past week, outperforming other decentralized exchange tokens.
DeFi exchange Uniswap set a record in November with a whopping $38 billion trading volume across the largest Ethereum layer-2 scaling solutions. This is $4 billion higher than the platform’s previous all-time peak in March, according to Dune Analytics. Moreover, it represents a resurgence in activity. Recently, Uniswap v4 launched a $15.5M bug bounty program to strengthen core contract security and boost trust in DeFi, reported CNF.
Inside Uniswap’s Major Achievement
This great book was majorly led by activity on Ethereum layer-2 networks like Arbitrum, Base, Optimism, and Polygon. Arbitrum led the way with $19.5 billion, followed closely by Base, a Coinbase-backed network, which accounted for $13 billion.
Henrik Andersson, Apollo Crypto’s Chief Investment Officer (CIO), attributed the surge in Uniswap’s layer-2 activity to a higher interest in stablecoins and other assets in the DeFi ecosystem. According to a report by CoinTelegraph, “This is in line with the ongoing DeFi renaissance and the recent ETH/BTC rally. ” He also emphasized rising on-chain yields as a factor that lured investors back to the platform.
According to Andersson, there was reason to be optimistic about the Ethereum ecosystem as this price could be the start of that much-awaited breakout period. “Every time Bitcoin approaches $100,000, we see Ethereum and DeFi tokens start to follow,” he noted.
As mentioned above, Uniswap’s activity has also translated into remarkable fee generation. In the last month, the platform earned more than $90 million in fees, pushing it to the sixth protocol in terms of fee revenues. It surpassed notable peers like Maker DAO and Tron DAO, as well as Solana-based Pump.fun, which witnessed increased activity due to the launch of a meme coin.
UNI Price Action
The increased use of Uniswap has helped the platform’s native token, UNI. In the past seven days, UNI’s price has risen nearly 38%, leaving other decentralized exchange tokens behind. As of this writing, UNI is trading at $12.82, representing a 2.62% gain in the last 24 hours.
Looking at Andersson’s outlook, this trend may have continued because of rising DeFi activity and potential strength in a major bull market for Ethereum. Meanwhile, other tokens have had mixed results. Solana-based Raydium (RAY) fell 2.75%, while Jupiter (JUP) rose 3.85%. However, the top performer is still UNI, which underlines the comeback of Ethereum-based DeFi protocols.
The record-breaking month cements Uniswap’s dominance in the decentralized exchange market as Ethereum layer-2 scaling solutions become increasingly crucial for sustained DeFi growth. Furthermore, amidst the upward trend in the crypto market, the UNI price also appears primed to continue its growth.
