Uniswap, the foremost decentralized exchange on the Ethereum network, has significantly increased its trading volume on layer 2 blockchains compared to two years ago.
This decentralized exchange (DEX) now represents approximately 37% of the total trading volume on layer 2 while operating on Ethereum, the second-largest cryptocurrency platform.
Researcher Tom Wan from 21.co observed that Uniswap’s L2 volumes have grown by more than 650% over the past 24 months, rising from approximately $4 billion in 2022 to over $30 billion this year. Wan also suggested that this growth could continue if more high-quality protocols are launched on layer 2 networks such as Arbitrum, Coinbase’s Base, and Optimism.
Although data indicates that Uniswap has only contributed 2.9% of the total volume on alternative L1 blockchains, Wan believes that this trend could shift in the future. With the combination of high-performance EVM-compatible L1 blockchains and a multi-chain expansion strategy, Uniswap could attract more volume on networks like Sei and Monad.
The founder of Uniswap, Hayden Adams, established the platform in 2017 and it remains the largest on-chain trading venue on Ethereum’s L1 blockchain. The protocol has facilitated over $2 trillion in cumulative trading volume across 17 chains, with users locking in more than $5.5 billion in total value.
However, Uniswap now faces potential regulatory action from the U.S. Securities and Exchange Commission (SEC) as part of a broader crackdown on the cryptocurrency industry. The SEC has issued a Wells Notice to Uniswap, and the DEX plans to contest this decision, describing it as “disappointing but not surprising.”
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Uniswap under fire as SEC targets leading decentralized exchange.