All you need to know about Uniswap’s performance in May

• The rise in user count resulted in a 22% increase in network trading fees in May. 
• UNI’s weighted sentiment rose last week, reflecting investors’ belief in the asset’s potential.

The world’s largest decentralized exchange (DEX) Uniswap [UNI] scripted a new growth story last month. The DeFi powerhouse took to Twitter to highlight that its monthly interface traders count reached 523,606 in May, an all-time high since the launch of its flagship V3 version exactly two years ago.

After further scrutinizing the data, sourced from on-chain analytics firm Dune, it was discovered that the May figure outperformed the previous best, set in January 2022, by a large margin.

Moreover, the figure represented a growth of more than 50% from the previous month.

The undisputed king of the DEXs

Riding high on its achievement in May, the Uniswap team emphasized that it was the world’s largest on-chain protocol, having executed transactions worth over $1.5 trillion.

It was also the largest decentralized application (dApp) on the Ethereum [ETH] chain, contributing heavily to the network’s liquidity and DEX volume.

Uniswap was the numero uno DEX in the Web3 space with a 24-hour volume of $832.78 million, which was more than thrice the total volume of the second-ranked PancakeSwap [CAKE]. To put things into perspective, this accounted for 87% of Ethereum’s total DEX volume.

Despite the dominance, the total volume on the protocol declined progressively since the record levels attained in March.

Source: DeFiLlama

Furthermore, the rise in users resulted in a 22% increase in network trading fees in May, according to Token Terminal.

But despite the surge in trading activity, liquidity on Uniswap dipped from the previous month. The total value locked (TVL) saw a reduction of around $100 million in May.

Source: Token Terminal

Tides may shift for UNI

Native token UNI exchanged hands at $5.02 at press time, marking a 24-hour drop of 1.16%, per Santiment. Nevertheless, the DeFi token’s trajectory over the past week was satisfying as it soaked gains of 1.4%.

UNI’s weighted sentiment also rose last week, reflecting investors’ belief in the asset’s potential. At the same time, it was trending on crypto-focused social networks, with more mentions and engagements.

Source: Santiment

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One of the reasons behind the change in market sentiment could be due to a recent proposal to deploy Uniswap’s V3 on the layer-1 blockchain Fantom [FTM].

Several proposals to expand Uniswap beyond Ethereum [ETH] have emerged in 2023. After successfully getting deployed on the BNB Chain, a go-ahead for Polygon’s [MATIC] zkEVM-V3 integration was given in April.