Uniswap L2 Trading Volume Soars by 650% – Dominates Layer 2 DEX Market
Uniswap, the leading Layer 2 decentralized exchange (DEX) on Ethereum, has seen a significant surge in trading volume, accounting for approximately 37% of the total volume on L2. This represents a remarkable increase of over 650% compared to two years ago, with the volume climbing from $4 billion in 2022 to over $30 billion this year.
Tom Wan, a researcher at 21.co, highlighted the growth of Uniswap’s L2 volume and noted that the trend is expected to continue, especially with the launch of quality protocols on Layer 2 networks like Arbitrum, Coinbase’s Base, and Optimism. Wan pointed out that L2s, particularly Base and Arbitrum, have witnessed a surge in economic activities, contributing to 82% of the total L2 volume on Uniswap. He predicts that the dominance of L2 volume on Uniswap could reach 50% by the end of the year.
Despite its success, Uniswap is facing regulatory pressure from the U.S. Securities and Exchange Commission (SEC), with a Wells Notice indicating a probable enforcement action. The SEC’s actions have sparked criticism from the crypto industry, with many arguing that the regulatory body has not taken into account the unique characteristics of blockchain technology in the crypto sector.
In response to the criticism, SEC Chairman Gary Gensler defended the SEC’s actions, stating that existing securities laws are clear and that the crypto sector must comply with regulations. Meanwhile, UNI, Uniswap’s native token, is trading at $7.68, up 0.9% in the last 24 hours but down 6% over the last week.
As Uniswap continues to grow in popularity and trading volume, the regulatory challenges it faces highlight the ongoing tension between innovation in the crypto sector and regulatory oversight.
