Uniswap ($UNI), the in-house native token values surged and it grew faster than Ethereum, the Blockchain it is built on. The token jumped by 45% in the past one week to reach $5.46 and it has reached its peak in three weeks.
Uniswap holds the number one position among DeFi exchanges b daily volumes. The exchange saw the fees paid by traders surging by 25% and peaked to $5 million a day as per the data released from CryptoFees.info shows. The figures briefly exceeded the fees paid on Ethereum which was in between $4 million and $6 million.
Uniswap Surge Signifies A Market Recovery For DeFi
It is an indication that DeFi sector is seeing some recovery and this is indicated by the rising fees. The past six months has been very excruciating and the crypto sector is facing an unprecedented meltdown. As per data obtained from DeFi Llama, the capital invested in DeFi has fallen over 66% this year. However Uniswap losses have been less than 50% of its TVL this year. The exchange has also seen some inflows this week, with its TVL rising 11% to $5.1 billion.
Uniswap already enjoys the patronage of major players such as Polygon, and is also incorporated into a number of Ethereum-based applications, giving it a broad user pool. Its growing engagement with Ethereum Layer 2s is another reason for Uniswap gaining more interest.
Another fact which is swaying investors towards Uniswap is high gas fees on Ethereum, particularly during high-volume events such as popular NFT mints. High gas fees have irked users and this has led to a steady fall in Ethereum Gas volumes.
Uniswap gains have become Ethereum loss and this is visible in the form of sharp drop in Ethereum fees. Data reveals that ETH’s daily fees are at their lowest since late-2020.
Ethereum is also facing a number of issues which includes delays to the merge and a high amount of liquidations tanking ETH prices have driven users to other alternatives.