Uniswap DEX races

As one of the most anticipated implementations of the Decentralized Financial Sector (DeFi), Uniswap v3 was officially launched on May 5th. The upgrade aims to provide greater capital efficiency and flexibility, as well as better performance for liquidity providers.

The concept of Uniswap v3 includes features like centralized liquidity – which allows liquidity providers (LPs) to distribute their capital within certain price ranges instead of spreading liquidity across the price curve – as well as multiple fee systems that help LPs adapt to different degrees Risk.

The introduction of Uniswap v3 has sparked discussions in the entire crypto community: While some expect the new version of the largest decentralized exchange (DEX) in the DeFi sector to be a game changer, others expressed skepticism as to whether the policy of ” higher capital efficiency “” will appeal to a broader user base or only attract wealthier market makers. .

The numbers behind Uniswap

After Uniswap v3 overtook v2 in trading volume at the end of May, it has been at the top ever since. However, the trading volume for v3 in the last five weeks was a fraction higher than for v2. However, there are no clear indications of Uniswap v3. The log saw a large fluctuation in swap volume in June, but its peak was lower than it was in May.

Back to the average swap size for Uniswap v3 vs. v2: The data shows that the average swap size for Uniswap v3 is 4.4 times larger than that of v2. Users are less likely to swap for larger amounts, which may prove the Uniswap v3 skeptics right as the user base tends to be richer.

In terms of Total Locked Value (TVL), v3 accounts for about 22% of total locked coins compared to its v2 counterpart at the time of analysis. The daily turnover with Uniswap v2 averaged 29% and 79% for v3 during the investigation period. The numerical difference seems to underline the higher efficiency of v3, since capital is used more frequently and therefore more efficiently.

Covalent data shows a total of nearly 46,000 pairs on Uniswap v2, including unused pairs, while Uniswap v3 currently only hosts 2,700 trading pairs. One might assume that the gap between the two versions would narrow as more users migrated to v3, but the data shows the opposite trend: V2 is still growing faster than v3 in terms of the groups it creates.

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New pairs are created on v2 at a rate of 180 pairs per day, while v3 only achieves an average daily rate of 49 pairs. At least v3 increases the number of trading pairs faster than v2 of the same age.

Additional data showed no clear association between the TVL changes from v2 to v3. Some liquidity has certainly moved, but it’s far from a mass exit from v2. Uniswap v2 has seen a sharp drop in TVL, like it did on May 19 when it lost $ 1.8 billion, but that was caused by the larger market drop rather than v3.

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