Uniswap Continues to Build Momentum on Arbitrum Network

Uniswap, one of the prominent figures in the world of cryptocurrency, is gaining significant attention with its success on the Ethereum-based Arbitrum Layer-2 network. Known as one of the largest decentralized exchanges (DEX) in the world, Uniswap is now approaching a significant milestone in total value locked (TVL).
Contents
Massive Volume in Total Trading Volume
Rise Linked to DeFi Users
Wells Notice Adds Uncertainty to Uniswap
Massive Volume in Total Trading Volume
According to data published by Uniswap Labs on Dune Analytics, Uniswap on Arbitrum is on track to reach a staggering $150 billion in total trading volume. This development is seen as a reflection of the explosion in the decentralized finance (DeFi) ecosystem.


As of April 25th, Uniswap has already surpassed $146 billion in total trading volume on Arbitrum alone. This figure has consistently increased since the integration of the platform with Arbitrum in June 2021.
The initially limited trading volume of Uniswap has steadily grown during the crypto bear market in 2022. However, there has been a sharp rise, particularly since October 2023, signaling the precursor to the crypto boom that took Ethereum above $4,000 in the first quarter of 2024.
Rise Linked to DeFi Users
The increasing popularity of Uniswap on Arbitrum is also linked to the growing number of DeFi users turning to popular DEXs. One of the underlying factors is Arbitrum’s lower transaction fees compared to the Ethereum mainnet.
Arbitrum provides traders with a positive experience by offering low transaction fees and a scalable environment. A recently implemented new transaction format called “blob” by Ethereum developers also contributes to improving this experience.
Wells Notice Adds Uncertainty to Uniswap
Uniswap Labs plans to release Uniswap V4 after the deployment of Dencun, aiming to make the DEX more efficient and flexible. However, the decision of the United States Securities and Exchange Commission (SEC) to issue a Wells notice introduces some uncertainty. Founder Hayden Adams stated that they are prepared to fight against the SEC’s actions.
At the time of writing, the UNI price is trading at $7.88. The UNI price had approached $17 before starting to decline. However, the noticeable drop in price is evident after the correction. Crypto analytics firm Santiment commented that UNI, along with other altcoins, is in a buying opportunity zone.
Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.