Uniswap v3 Overtook v2 from Volume: New Ethereum Killer
- The third iteration of Uniswap, the world's largest decentralized exchange, has exceeded v2 in terms of daily transaction volume.
- Uniswap v3 was introduced to give liquidity providers better control and a wide range of features that put it at the forefront of decentralized exchanges.
- The numbers launched in May 2021 and have been impressive. Uniswap v3 outperformed daily fee generation.
- The growing popularity of decentralized exchanges is proving to be tough competition for centralized agencies among crypto enthusiasts.
Uniswap v3 reached an important milestone in record time after its launch earlier this month. The new iteration, which is an upgrade to version 2, has exceeded the daily transaction volume of its predecessor. This is proof of the number of new functions that have been incorporated into the decentralized exchange.
The surge in popularity of DEX and DeFi has taken the financial industry by storm, as DeFi's total volume is on the order of $ 14.92 billion and analysts predict that number will grow in the coming months.
Uniswap v3: An instant success
Uniswap v3 was designed as an improvement on v2 as the upgrade was aimed at attracting larger investors and enhancing the liquidity provider experience. Uniswap v3 has reached an impressive milestone, exceeding the daily transaction volume of Uniswap v2.
In the past 24 hours, Uniswap v3 had a volume of $ 1,034,104,798, which is an impressive 13.79% of the DEX market share and outperforms Uniswap v2. In addition to this impressive performance, analysts have found that the two versions of Uniswap outperformed Bitcoin in terms of daily fee generation, generating more than Bitcoin in the past few days.
This claim is supported by data from Cryptofees, which shows that Uniswap v3 generated charges of $ 4.5 million for the day, with v2 accounting for $ 3.8 million in daily charges while Bitcoin generated 3, $ 7 million behind.
Uniswap v3 not only lists the daily fees, but also the weekly key figures about Bitcoin. Hayden Adam acknowledged speculation that high gas fees weren't responsible for the feat, but exchanging fees with liquidity providers resulted in impressive numbers.
On the downside
- The high fees associated with Uniswap v3 are a concern for exchange users around the world.
- Dragonfly Capital's managing partner Haseeb Qureshi noted that v3 appears to be more gas intensive, "specifically 28% more expensive".
The gift of Uniswap v3
Uniswap v3 differs significantly from v2 in terms of the features offered by the exchange. A leading upgrade is the introduction of concentrated liquidity, which liquidity providers can use to decide what price range their capital will be used for.
By providing a fee layer, liquidity providers can be appropriately rewarded according to the risk taken.
In addition, Uniswap v3 offers up to 4,000x capital efficiency, which allows users to earn significantly more than in v2. Oracles can be integrated in version 3, which offers the additional functionality of providing TWAPS immediately for any period in the last 9 days.
These and many other offers were largely responsible for the epic milestones that Uniswap v3 reached in such a short time after its introduction in May 2021.
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