Research Summary
The report provides an in-depth analysis of Uniswap’s growth and expansion from a single-chain to a multichain decentralized exchange (DEX). It examines key financial and usage metrics, including net deposits, trading volume, fees, monthly active users, trade count, and tradeable pairs. The report also highlights the dominance of Ethereum Mainnet in Uniswap’s operations.
Key Takeaways
Ethereum Mainnet Dominates Uniswap’s Liquidity
- Ethereum Mainnet’s Liquidity Supremacy: Despite Uniswap’s deployment on nine different EVM chains, 84% of the liquidity is still available only on the Ethereum Mainnet. This dominance indicates the significant role Ethereum Mainnet plays in Uniswap’s operations.
Trading Volume and Capital Efficiency
- Trading Volume Concentration: Over 50% of Uniswap’s trading volume comes from Ethereum Mainnet. However, Arbitrum and Base are emerging as fast-growing trading venues, accounting for approximately 25% of the total trading volume.
Fees Generation and Distribution
- Fees Generation: Ethereum accounts for almost 70% of total fees generated on Uniswap. Interestingly, Uniswap’s Base deployment has grown to account for about 20% of total fees generated within a few months from launch.
Monthly Active Users (MAUs)
- MAUs Distribution: Ethereum Mainnet accounts for only 23% of all MAUs on Uniswap, compared to its 84% share of net deposits. This suggests that users are active on more than one Uniswap trading venue, leading to a more diversified user base across chains.
Tradeable Pairs
- Tradeable Pairs: Base accounts for almost one-third of all tradeable pairs on Uniswap, indicating its growing importance in Uniswap’s ecosystem. Ethereum Mainnet and Base together make up over 90% of all tradeable pairs on Uniswap.
Actionable Insights
- Monitor Ethereum Mainnet’s Dominance: Given Ethereum Mainnet’s significant role in Uniswap’s operations, stakeholders should closely monitor developments on this chain for potential impacts on Uniswap’s performance.
- Assess the Growth of Arbitrum and Base: The rapid growth of Arbitrum and Base as trading venues on Uniswap suggests potential opportunities. Stakeholders should assess these chains’ growth trajectories and their implications for Uniswap’s future.
- Understand Fee Generation Dynamics: The significant fees generated by Ethereum and Base highlight the importance of understanding fee generation dynamics across different chains for revenue forecasting.
- Examine User Activity Across Chains: The distribution of MAUs across different chains suggests a diversified user base. Stakeholders should examine user activity across chains to understand user preferences and behaviors.
- Explore Tradeable Pairs: The dominance of Base and Ethereum Mainnet in tradeable pairs suggests potential opportunities for diversification. Stakeholders should explore the possibility of adding more tradeable pairs on other chains.
