Uniswap V3 Gains Massive Adoption Among DeFi Users Despite Market Dump

Uniswap V3, launched in the month of May 2021, has gained the attention of crypto folks in the DeFi space. Despite the crypto market dip this month, the revamped exchange has hit a record for volumes of transactions done. 

In terms of daily trading volume, Uniswap V3 is currently topping the list among decentralized exchanges. It holds a record of $1.2 billion in daily transactions. Uniswap V2 on the other hand currently has a daily volume below $1 billion. Other top decentralized exchanges competing in trading volume with the newly launched Uniswap V3 include Pancakeswap V2, Sushiswap and 1inch exchange. 

After the severe market correction last week, DeFi tokens bounced significantly. MKR gained 91% while YFI saw a 72% increase. UNI which traded at around $15 on May 23 bounced significantly to around $24 the following day. 

Following the launch of Uniswap V3 and the market situation, some analysts have aired their views on the exchange as well as the token.

What the Analysts Think of Uniswap

One of the project managers at eToro, Johaness Jensen noted that the new structure put in place on the exchange for Constant Function Market Makers (CFMM) has contributed to the success and adoption of this new platform. On V3, liquidity providers have more options to offer bounded liquidity unlike in V2.

Elias Simon who is a seasoned protocol specialist added that the Uniswap upgrade will speedily attract more capital from liquidity providers and will lead to a more capital-efficient DeFi ecosystem.

One of the co-founders of Biconomy, Aniket Jindal revealed that despite the outrageous gas fees on the platform, new users keep on tripping to the exchange for transactions. This is a positive sign and in the near future, as the developers and founders look to find innovative ways of reducing fees, the exchange will further experience an increased adoption.

The decentralized exchange was founded in 2018 and has since then experienced two upgrades. The version 2 of the exchange was launched last year and 2021 has welcomed the version 3 of the exchange. With the constant improvements and innovations, Uniswap will keep getting better and more users will adopt the DeFi project. 

Views and opinions expressed are solely those of the author and not of The DeChained or any affiliated party. Views or opinions expressed in this article (or any article on the website) are not financial advice. Articles are for informational purposes only. The author and The DeChained may hold positions in assets discussed in this or other articles.
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