Uniswap’s rising user activity has this effect on UNI
- Uniswap experienced rising user activity and achieved 300 million swaps on its protocol.
- The DAO explored a collaboration with Zero Protocol to enhance its ecosystem.
Uniswap [UNI], a dominant player in the cryptocurrency exchange sector, witnessed a resurgence in activity of late. Despite facing challenges and a plateau in growth during tough market conditions, Uniswap was now showing signs of renewed vitality.
Realistic or not, here’s UNI’s market cap in BTC’s terms
According to data from Token Terminal, the daily active users on Uniswap rose on 30 September. Moreover, the Uniswap Protocol achieved a significant milestone by completing over 300 million swaps.
active users up ??
trading fees down ?? pic.twitter.com/lX7V3uWNF9
— Token Terminal (@tokenterminal) September 30, 2023
These swaps represent transactions on the platform. Notably, the increasing number of swaps indicated a growing interest in decentralized exchanges (DEXes), which also contributed positively to the ecosystem.
Swap szn in full effect ?
Uniswap Protocol has officially hit 300,000,000 swaps ? pic.twitter.com/6taofceNkJ
— Uniswap Labs ? (@Uniswap) September 28, 2023
However, despite the surge in activity, there’s a worrying trend of falling overall fees. This decline in fee revenue can pose challenges for the sustainability and development of Uniswap.
Governance continues to make progress
Despite these challenges, Uniswap’s governance community remained proactive. Recently, the Uniswap DAO made significant decisions to enhance the protocol’s capabilities.
One notable development was the decision to deploy on the Polygon [MATIC] zkEVM (Zero Knowledge Ethereum Virtual Machine). Additionally, a proposal outlined a partnership between the Uniswap DAO and Zero Protocol, focusing on a “friendly fork” collaboration.
This collaboration aimed to create a new version of Uniswap on the Polygon zkEVM while maintaining a cooperative relationship with the original protocol.
It involves integrating Zero Protocol as a friendly fork on the Polygon zkEVM chain, utilizing Uniswap’s established backend infrastructure and receiving support for ecosystem-funded tools.
As part of the alignment of interests, the DAO will receive a 10% token allocation. At press time, the proposal passed by 99.99% of votes.
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In terms of UNI, its price experienced a notable surge in the past week. At the time of writing, the token was trading at $4.54.
The network growth of UNI also expanded during this period, indicating an increasing interest from new addresses in the token and its associated ecosystem.