Connect with us

Altcoin

Uniswap dominates crypto fee rankings, surpassing PancakeSwap and LIDO

Published

on

Uniswap dominates crypto fee rankings, surpassing PancakeSwap and LIDO
Source: StockAI


  • Uniswap generates record fees and outperforms competitors.
  • The network shows strong financial performance with declining user activity.

In the crypto space, Uniswap performed exceptionally well in terms of the fees it generated over the past year. According to data provided by the token terminal, Uniswap ranked 3rd in terms of fees generated, outperforming other protocols such as PancakeSwap, LIDO, and BNB chain.

Source: token terminal

Subsequently, this growth in fees resulted in an improvement in revenue collected for the decentralized exchange (DEX). Based on token terminals data, Uniswap’s revenue increased by 62.2% over the last week.

Is this “fee”sible?

However, while Uniswap‘s financial performance was strong, the number of monthly active users on the platform declined, besides the number of unique users, according to Dune Analytics.

This could potentially impact the long-term success of the DEX. A decline in user activity, usually, impacts the revenue generated by the DEX.


A 33.80x hike on the cards if UNI hits ETH’s market cap?


Source: Dune Analytics

In addition to that, the pool value on Uniswap also declined over the past year. The pool value is the total value of assets that are being traded on the DEX and a decline in pool value can indicate a decrease in overall trading activity and liquidity.

This could be a concern for Uniswap, as a lack of liquidity can make it more difficult for users to buy and sell assets on the platform.

Source: Dune Analytics

Coupled with a declining pool value, the TVL for Uniswap also decreased, over the past three months. According to Messari’s data, the TVL decreased from $3.3 billion to $2.5 billion in that period.

Holders show faith

Despite these negative developments, the MVRV ratio of the UNI token, the native token of Uniswap, continued to improve.

Well, to put things into perspective, the MVRV ratio measures the market value of a token relative to the cost of acquiring it and a rising MVRV ratio can indicate that holders are confident in the long-term prospects of the token.

Furthermore, the decline in daily active users and transactions in profits somewhat hints at the fact that perhaps addresses are continuing to hold onto their UNI.


Are your UNI holdings flashing green? Check the profit calculator


Source: Santiment

Despite the decline in some key metrics, it seemed that investors were still bullish on the future of Uniswap and the UNI token.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.