Uniswap Labs, the developer behind one of the top decentralized exchanges (DEX), Uniswap, notes that the number of users leveraging its platform on Optimism and Base has more than doubled in the last year.
More Swapping Happening On Base And Optimism
Optimism and Base, two widely used layer-2 scaling solutions for Ethereum, offer distinct advantages for traders. When swapping tokens on Uniswap, which is deployed on either of these platforms, traders benefit from considerably lower transaction fees.
Uniswap Labs reports a notable surge in swappers on Optimism and Base. Over the past year, the number has doubled from 124,970 in February 2023 to 310,050 in February 2024, indicating a rising interest in these layer-2 solutions.
Uniswap users on Base and Optimism doubled | Source: Uniswap Labs on X
This growth mirrors an upward trend in DeFi activity, as evidenced by the rising total value locked (TVL) across various protocols, especially from Q3 2023.
DefiLlama data on March 7 shows that the total DeFi TVL across all protocols is over $96 billion. At one point in 2023, it was less than $40 billion.
Uniswap is active across multiple platforms, including the BNB Chain. However, most activity stems from Ethereum and Ethereum-compatible networks, including Optimism and Base.
Data shows that Uniswap is the seventh largest protocol, with a TVL of $5.8 billion. A large chunk of assets under management is concentrated on Ethereum, Arbitrum, and Polygon. Base and Optimism are also popular, but Uniswap manages $67 million and $80 million, respectively.
Top 10 DeFi protocols | Source: DeFiLlama
Even though Uniswap was initially launched on Ethereum in November, it has since been deployed on 13 other networks. Uniswap Labs sought to enhance user experience, escaping the high gas fees on Ethereum.
Layer-2 solutions and sidechains like Optimism, Base, and Polygon offered a channel for users to trade still while enjoying low fees and fast throughput.
Uniswap Continues to Build
Uniswap Labs announced the deployment of Uniswap v2 across various layer-2 platforms in late February 2024. Uniswap v2 is one of the earliest versions but remains popular.
Uniswap v3 is active, and its version has been duplicated in other protocols, mainly PancakeSwap, a competing DEX popular in the BNB Chain.
Uniswap Labs is working on Uniswap v4. It will introduce more features, including Hooks, meant to improve flexibility.
UNI prices trending upward on the weekly chart | Source: UNIUSDT on Binance, TradingView
The spike in the number of users across various platforms has been positive for UNI, Uniswap’s native token. So far, the token is up roughly 110% from late February. As of March 7, it was changing hands at around $15.
Feature image from Canva, chart from TradingView
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Author: Dalmas Ngetich
