Uniswap, a highly favored decentralized exchange (DEX) at the layer 2, currently dominates the market with a substantial 37% share of trading volume. This is a remarkable surge in comparison to the quantities transacted two years ago.
While Uniswap’s market share on Layer 2 (L2) is increasing, it currently represents only 2.9% of the total trading volume across all other Layer 1 (L1) platforms. Wan believes that the introduction of high-performance L1s such as Sei and Monad, along with Uniswap’s multi-chain strategy, might potentially bring about changes in the future.
According to Tom Wan, a developer at 21.co, the trading volumes on Uniswap’s Layer 2 (L2) platform have experienced a significant increase of 650% over the past 24 months. In 2022, the total trading volume reached $30 billion, up from $4 billion. The primary expansion of the second language (L2) is facilitated by platforms like Arbitrum and Coinbase’s Base, which contribute to 82% of Uniswap’s L2 trading volume.
The increasing development of the cryptocurrency sector has brought attention to the influence of Uniswap on layer 2 networks and the regulatory challenges it faces. Industry observers are closely monitoring these factors to understand their impact on the future of decentralized finance (DeFi).
Uniswap plans to challenge this decision, emphasizing its initial role as the dominant decentralized exchange (DEX) in the Ethereum ecosystem. It has facilitated almost $2 trillion in trading volume across 17 different chains and has over $5.6 billion in total value locked.
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