By Nermeen Nabil Khear TLDR
- Uniswap achieved record $38 billion monthly volume across Ethereum L2s in November
- This surpassed previous March record by $4 billion
- Arbitrum led with $19.5 billion volume, followed by Base at $13 billion
- UNI token up 42% in last week, trading at $12.58
- Protocol earned over $90 million in fees last month
Uniswap, the leading decentralized cryptocurrency exchange, has recorded its highest-ever monthly trading volume across Ethereum Layer 2 networks, reaching $38 billion in November. This milestone marks a $4 billion increase from its previous record set in March.
The surge in trading activity was particularly strong on Arbitrum, which led all Layer 2 networks with $19.5 billion in monthly volume. Base, the Coinbase-incubated network, followed closely behind with $13 billion in trades during the same period.
These numbers reflect a broader return of traders and investors to the decentralized finance (DeFi) ecosystem. The increase in activity has occurred across multiple Layer 2 networks, including Polygon and Optimism, alongside Arbitrum and Base.
The trading surge has directly impacted Uniswap’s revenue stream. The protocol collected more than $90 million in fees during the past month, placing it sixth among all blockchain protocols in fee generation. This performance put Uniswap ahead of several major networks, including Tron and Maker.
The market has responded positively to these developments, with Uniswap’s native token, UNI, experiencing a 42% price increase over the past week. The token reached $12.58, showing a 10% gain in just 24 hours.
Henrik Andersson, chief investment officer at Apollo Crypto, attributes the volume increase to rising demand for assets and stablecoins within the DeFi ecosystem. He notes that on-chain yields are also trending upward, contributing to the overall growth in trading activity.
In comparison to other decentralized exchanges, Uniswap’s performance stands out. The protocol has outpaced competitors like Solana-based Raydium, which saw a 2.2% decline in the past week, and Jupiter, which managed a 7.7% increase during the same period.
The growth in Layer 2 trading volume demonstrates the increasing adoption of these scaling solutions. Layer 2 networks are designed to handle transactions more efficiently and at lower costs than the main Ethereum network, while maintaining security and decentralization.
Base’s strong showing is particularly notable, as the relatively new network has quickly established itself as a major player in the Layer 2 ecosystem. Its $13 billion in monthly volume indicates rapid user adoption and growing trust in the platform.
The distribution of trading volume across multiple Layer 2 networks suggests a healthy diversification of the DeFi ecosystem. Rather than concentrating activity on a single platform, traders are actively using various Layer 2 solutions for their transactions.
The cost efficiency of Layer 2 networks has played a crucial role in attracting traders. These networks offer substantially lower transaction fees compared to the main Ethereum network, making them attractive for frequent traders and smaller transactions.
The data from Dune Analytics, which tracks these metrics, shows consistent growth throughout November rather than isolated spikes. This pattern suggests sustained trading interest rather than short-term speculation.
The current trading volumes also coincide with increased activity in the broader cryptocurrency market. The overall market conditions have created an environment conducive to higher trading volumes across decentralized exchanges.
Uniswap’s fee generation of $90 million demonstrates the protocol’s ability to monetize its services effectively. These fees are generated from the small percentage charged on each trade, with the volume of transactions contributing to the substantial total.
The platform’s performance in November has surpassed several competitors in the decentralized exchange space, establishing Uniswap as a leader in DeFi trading activity. The protocol’s ability to handle such high volumes while maintaining stability supports its position as a mature platform in the cryptocurrency ecosystem.
The post Uniswap’s November Volume Reaches $38B Across Ethereum L2 Networks appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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