Uniswap V3 trading volume and generated fees increase by over 22% in 24 hours – CryptoMode

Uniswap v3 is seeing strong momentum with all markets recovering. The leading decentralized exchange is seeing an influx of trading volume, fees and TVL, somewhat confirming that confidence has been restored. Additionally, ETH, USDC, and WBTC remain the three currencies with the largest trading volume.

Uniswap V3 soars again

The brutal development of the crypto market since mid-2021 has had a significant impact on all platforms, protocols and service providers. This also affects decentralized exchanges like Uniswap, where people often deposit funds into liquidity pools to earn a portion of trading fees. However, the overall volume of DEXs has declined significantly over the past few months, which isn’t entirely surprising either.

Fortunately, crypto markets are seeing a rebound, which is a welcome sign. The big climber is Ethereum, which has recovered over 40% of lost value this week alone. Additionally, after a protracted streak, Bitcoin has again breached the $22,000 mark, often paving the way for other currencies to become more bullish. Since Uniswap V3 is primarily based on Ethereum – although it also runs on Arbitrum, Polygon, Optimism and Celo – the bullish momentum for the Ethereum network will lead to renewed interest in its native DApps.

The last 24 hours have proven themselves for Uniswap V3 prominent. A 25% increase in daily trading volume is always welcome. However, one has to keep in mind that Uniswap V2 is also still a popular trading platform even if it doesn’t offer the same efficiency as V3. Additionally, there is still tremendous liquidity on Uniswap V2, which was never migrated to the newer version of the protocol.

In addition, the protocol again generated over $2 million in daily fees, a gain of 22.15%. Last but not least, the total value locked on Uniswap V3 reached $4.27 billion, up 2.61%. It will take a while to revisit the peak of $5.27 billion recorded in April 2022. It’s not impossible for Uniswap to surpass the $5 billion TVL again, although there are still some market uncertainties to manage.

Where is the USDT volume?

An interesting development is how USDT volume on Ethereum continues to decline. More specifically, the largest stablecoin by market cap is accessible across different blockchains. However, the volume based on Ethereum – and that on Uniswap V3 in particular – sits at just over $186 million. Furthermore, his TVL is $188.46 million, which seems pretty low.

In terms of volume, USDT stays ahead of DAI — which is yet to break the $78 million mark — but DAI has far more liquidity at over $938 million. Tether USD is a very intriguing creature in this regard, but it has been significantly outperformed by USD Coin (USDC). More specifically, USDC has $1.3 billion in liquidity and $1.31 billion in 24-hour volume. It is second only to Ethereum, even though USDC has almost double ETH’s TVL.

It is also fascinating to see the continued popularity of Wrapped BTC (WBTC) on Uniswap V3. Its daily volume of over $288 million puts it way ahead of USDT and DAI and way ahead of everything else. WBTC also ranks well in the WBTC/ETH liquidity pool, although it lags far behind USDC/ETH.

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