- Total transactions completed on Uniswap have exceeded 200 million.
- The year has, however, been marked by a decline in monthly trade volume for the decentralized exchange.
The cumulative count of transactions completed on leading decentralized exchange Uniswap [UNI] since it launched in 2018 has surpassed 200 million. However, despite this notable achievement, the year has proven challenging for the decentralized finance (DeFi) protocol.
230M unique transactions on Uniswap Protocol 🦄
Big if true. pic.twitter.com/JC52FRqISi
— Uniswap Labs 🦄 (@Uniswap) September 22, 2023
Realistic or not, here’s UNI’s market cap in BTC’s terms
Uniswap and its troubles
Trading volumes across decentralized exchanges have trended downward since March. A report published by data aggregator CoinGecko in July found that spot trading across the top 10 decentralized exchanges totaled $155 billion between April and May, dropping by 31% from Q1.
The decline has continued unabated in Q3, as data highlighted in a report by digital asset manager Vaneck showed that these DeFi protocols suffered –
“A more severe decline to $52.8 billion in August, 15.5% lower than in July.”
With only seven days remaining in September, Uniswap has recorded a transaction volume of $14.85 billion, logging an 80% decline in monthly transaction volume since the $73 billion high recorded in March.
The market-wide decline in trading volume is due to the steady drop in user activity across decentralized exchanges. Data sourced from Token Terminal revealed that active user count on Uniswap has also plummeted in the past few months.
With a cumulative user count of 847,500 as of 23 September, the number of addresses that complete transactions on Uniswap monthly has dropped by 10% since May. This has impacted network fees, which have, in turn, tumbled by 39% in the past three months.
Interestingly, despite the low trading volume and user count recorded on the protocol in the past few months, the total value of assets locked (TVL) within Uniswap has been relatively stable.
After plummeting to a low of $1.13 billion on 19 August, it has since rallied by over 100%. However, on a year-to-date, a minor decline of 4% has been posted, data from DefiLlama showed. At press time, Uniswap’s TVL was $3.2 billion.
UNI in the spot markets
At the time of writing, UNI exchanged hands at $4.26. Sharing a significantly positive correlation with Bitcoin [BTC], the alt’s value has lingered in a tight range for most of the month.
On a daily market, UNI accumulation has slowed. Key momentum indicators were posted below their respective center lines, suggesting that token distribution outpaced accumulation.
Is your portfolio green? Check out the UNI Profit Calculator
For example, UNI’s Relative Strength Index (RSI) was 39.55. Its Chaikin Money Flow (CMF) also faced south at -0.07 at press time.
As gleaned from the altcoin’s Directional Movement Index (DMI), UNI sellers controlled the daily market and sidelined the buyers. The positive directional index (green) was at 13.96, laid below the negative directional index (red) at 24.64.