Uniswap Processes Over $2 Trillion On Ethereum: UNI Bull Run Inevitable?

Uniswap, the leading decentralized exchange (DEX) on Ethereum, is building and growing, looking at the number of processed volumes over the years.

Since launching in late 2018, on-chain data shows that the DEX has processed over $2 trillion in cumulative volume on the Ethereum mainnet.

The steady climb in cumulative volume points to Uniswap’s growth over the years and the team’s dedication to ensuring that the platform functions as originally designed. Unlike centralized exchanges like Binance or Coinbase, Uniswap relies on smart contracts for swapping.

All transactions are initiated from a non-custodial wallet such as MetaMask, ensuring the holder retains control of all assets. No transaction is approved unless the wallet owner authorizes it.

For the unique value proposition Uniswap presents, the platform continues to grow by leaps and bounds. The latest data from DeFiLlama reveals that the DEX manages over $4.9 billion worth of assets.

At this level, Uniswap is the sixth largest DeFi protocol, cementing the dominance of Ethereum-based dapps.

While users can choose from three protocol versions, the latest iteration, v3, is the largest, managing over $3 billion. Uniswap v3 was the first DEX to introduce concentrated liquidity to improve capital efficiency.

Besides v3, users can swap on Uniswap across multiple chains, including the BNB Chain and Avalanche. However, DEX trading via Uniswap is popular on Ethereum, where the exchange manages over $3.9 billion.

As DeFi gains traction and more traders opt to swap trustlessly, Uniswap will likely process even more transactions. Most importantly, the DEX may dominate DEX trading on Ethereum layer-2s, looking at trends. DeFiLlama data reveals that the dapp has a total value locked (TVL) of over $277 million.

Considering the role of the DEX on Ethereum and the fact that it is among the biggest contributors of gas fees, UNI could benefit in the coming sessions. From the daily chart, UNI is posting impressive higher highs and approaching a key resistance level.

After dumping to $4.7 in early August, the token has almost doubled in valuation and is on the cusp of printing fresh Q4 2024 highs. A break above $8.5 could trigger a wave of demand that may see UNI float to $12.