Uniswap v3 flips v2 on volume – and both versions flip Bitcoin on fee income

The world’s largest decentralized exchange continues to grow and the newly started third iteration has now surpassed version two in terms of daily volume.

In addition to v3 outperforming v2’s daily transaction volume, both individually outperformed Bitcoin in terms of daily fee generation. The move was watched by Uniswap founder Hayden Adams, who commented that they both earn more daily and weekly fees than bitcoin miners.

Data from Cryptofees showed that Uniswap v3, launched on May 5, generated $ 4.5 million, while v2 generated $ 3.8 million in fees for the day. At the time, Bitcoin was behind both of them with $ 3.7 million in daily fee generation.

Great to see @Uniswap v3 https://t.co/lUNKPjwNZB has been added

v3 and v2 LPs now both earn more daily and weekly fees than bitcoin miners https://t.co/OLaJMUltXW pic.twitter.com/sVBrtEdl9C

– Hayden Adams (@haydenzadams) May 25, 2021

At the time of writing, the website reported that Uniswap v3 generated $ 4.1 million in the current 24 hours, while v2 ranks second at $ 3.2 million. SushiSwap is the second largest DEX after Uniswap at $ 2.135 million. Estimates of Bitcoin and Ethereum weren’t available in the past 24 hours, but the previous day’s Bitcoin fees hit $ 2.821 million, while Ethereum brought in $ 28.71 million.

Critics often blame Uniswap for being responsible for the high Ethereum gas fees, but the sales numbers are more like exchange fees paid to liquidity providers than gas fees.

In terms of daily transaction volume, v3 has surpassed v2 at $ 1.48 billion in the past 24 hours, according to Uniswap’s analytics site. Version 2 had a reported daily volume of $ 1.1 billion. When it comes to total locked value, v2 still dominates at $ 5.8 billion compared to $ 1.46 billion for v3.

On May 20, Cointelegraph reported on Messari’s prediction that v3 would surpass v2 by volume this month.

Uniswap’s success was so prominent that the financial industry’s bible The Wall Street Journal picked it up, suggesting that the DEX and others like it were a growing threat to Coinbase. A May 24 report said Uniswap was $ 36.6 billion in volume as of April, compared to $ 110 billion on Coinbase.

It added that Coinbase listed competition from decentralized exchanges as a potential business risk before going public last month.

There cannot be an “either / or” situation, but rather a “both” situation. Adams predicted that centralized exchanges would eventually tap into Uniswap’s liquidity pools and “essentially become front-end interfaces with nifty apps and websites that rely on Uniswap behind the scenes to trade”.

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