Uniswap v3 becomes the second largest DEX two weeks after launch

Despite the shaky start, Uniswap v3 volumes have risen sharply, putting the decentralized exchange (DEX) in second place behind its v2 iteration.

Since its launch on May 5th, the third form of Uniswap has grown significantly in terms of weekly trading volume.

According to Messari data, the DEX has now overtaken SushiSwap and is the second largest in the Ethereum network with a weekly volume of 6.5 billion US dollars. Uniswap v2 is still the leading Ethereum-based DEX at almost double the $ 12.4 billion weekly rate.

The monumental growth was noted by Messari researcher Ryan Watkins, who predicted:

“At its current rate of growth, it will likely surpass V2 by the end of the month. And the most impressive thing about it is that V3 does this with a fraction of the capital. “

DEX Weekly Volume – Messari

Battle of the DEXes

SushiSwap, which was once above Uniswap, is the third largest DEX according to these statistics at $ 5.6 billion per week. In terms of total locked value, a value that has slumped across the DeFi sector in the wake of the market crash, Uniswap has around $ 5 billion compared to $ 3 billion at SushiSwap, according to DeFi Pulse.

Watkins noted that Uniswap v3 reached 81% of Uniswap v2’s volume on May 19. It allows almost as much volume as version 2 with less than 15% of the TVL.

“All of this without liquidity incentives, passive LP managers or even the imminent use of Layer 2.”

He added that it is the only automated market maker (AMM) to turn its TVL over 100% on a daily basis, more than five times that of Uniswap v2.

Immediately after launch, Uniswap v3 was referred to by many as “Uniflop” due to the complexity of certain operations and the fact that gas costs were in some cases higher than version 2. The platform seems to have brushed off this early negativity and still managed to pull in collateral and traders.

The early success of Uniswap v3, as well as v2’s continued dominance, have resulted in the platform increasing its market share to a new high of 61% in 2021, Watkins added.

UNI price update

Unfortunately, the positive numbers didn’t stop UNI from moving further in line with the rest of the crypto market. The DEX governance token has lost 18% in the past 24 hours, down to $ 25, the lowest price since the first week of March.

UNI is now down 42% from its all-time high of $ 43 on May 3 as the massive sell-off in cryptocurrencies continues.

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