Uniswap to new highs as it hits 200M transactions

• Unique transactions on the Uniswap protocol reached 200 million.
• The number of UNI holders decreased but the TVL maintained its momentum.

The total number of transactions on Uniswap [UNI], one of the leading Automated Market Makers (AMM) surpassed the 200 million milestone, according to data from Dune Analytics. This landmark also shared by the Uniswap official Twitter page, means that the project has been able to attract a plethora of unique users who contributed to the cumulative trades.

Now that’s a whole lot of swapping ?

Uniswap Protocol has officially seen 200M unique transactions ? pic.twitter.com/1TO3MyIphx

— Uniswap Labs ? (@Uniswap) July 5, 2023

How much are 1,10,100 UNIs worth today?

High trades, reducing participants

However, this significant achievement comes amidst a backdrop of declining holder count, raising questions about the factors driving transactional volume on the network. 

According to Santiment, UNI’s total number of holders fell from 370,000 on 28 May. And at press time, it was 354,000. The decrease in holder count suggests that faith in the long-term value of UNI could be waning. Hence, some holders deemed it fit to let go of some of the tokens.

At the same time, the decrease in the number of active holders could be linked to the token’s 30-day performance which yielded a 17% hike. So, dropping some UNI could mean holders made gains amid increased trading activity.

Concerning its sojourn with NFTs, on-chain data showed that Uniswap had lost a ton of its sales volume. At the time of writing, the NFT trade volume was down to $332,000. This suggests that interest in trading Uniswap-linked collectibles did not improve.

Source: Santiment

Less input for the partners

Despite the hike in transactions, Uniswap’s involvement in the DeFi sector has been unimpressive. At the time of writing, UNI deposits into the Compound protocol have been very low.

Also, UNI deposits into the Aave protocol were not any better. This implies that UNI users have probably been transacting on the DEX instead of providing decentralized Applications (dApps) with liquidity. 

Source: Santiment

Futher insight into Uniswap’s DeFi engagement showed that the protocol’s Total Value Locked (TVL) has not necessarily increased in the last 30 days. At press time, the TVL was $4.10 billion.

Usually, the TVL indicates how stable a project is while assessing the financial backing and its health. 

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When the TVL increases, it means that a project is perceived to be more trustworthy. But when the metric falls, it implies that investors have doubts about making deposits into dApps linked to a project. 

So, Uniswap’s TVL suggests that trust in the protocol was relatively okay. DefiLlama also showed liquidity entering into Uniswap has substantially increased. As of 18 June, liquidity in the protocol was $27.04 million while at press time, it had increased to $38.91 million.

Source: DefiLlama