Since its launch in early May 2021, UniSwap V3 is a resounding success and has now become the top decentralized exchange (DEX) on Ethereum behind UniSwap V2.
In just the past 7 days, V3 has facilitated over $6.5 billion in volume and is set to bypass V2 by the end of May 2021 to become the largest DEX on Ethereum – an impressive feat by any standard.
The efficiency of UniSwap V3 can be seen in its ability to facilitate nearly as much volume as UniSwap V2 with just a fraction of the total value locked.
Below is a breakdown of UniSwap stats as of May 2021:
- The success of Uniswap V3 plus the continued dominance of Uniswap V2 has led to Uniswap increasing its market share to a new 2021 high of 61%
- Uniswap V3 is off to a good start and may soon flip UniSwap V2 in volume at the current pace of growth
- Uniswap V3 is facilitating nearly as much volume as Uniswap V2 with less than 15% of the total value locked in Uniswap V2
- Uniswap V3 is the only automated market maker that turns over its total value locked more than 100% on a daily basis. This is more than 5x UniSwap V2
- Uniswap V3 stablecoin pairs are particularly efficient as they are facilitating a similar amount of volume to Curve’s 3Pool with just a fraction of the TVL
To understand the efficiency of Uniswap V3 stablecoin pairs, here is a 24-hr breakdown.
At the time of writing, 24-hr volume for Curve’s 3Pool, which has $1.65 billion on USDC / USDT and DAI / USDC pairs reached $265 million.
On the other hand, UniSwap’s USDC / USDT and DAI / USDC pools, with just $125 million in aggregated TVL, reached $198 million.
From the above, the ratio of 24hr volume to TVL on Curve is 16% while that of UniSwap V3 is 158%.
The growth of UniSwap comes at a time when protocols are releasing upgrades of their own with layer 2 protocols continuing to gain massive traction.
Whether these upgrades resonate with the market, there is no doubt that UniSwap V3 is a resounding success and will continue to grow in the coming months as protocols for managing passive liquidity pools strategies launch and as users get acquainted with V3 parameters.
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