Looming Uniswap V3 Sees DEX Exceed All-Time High

Looming Uniswap V3 Sees DEX Exceed All-Time High

Automated market maker (AMM), Uniswap has recently achieved another milestone, which involves marking an all-time high in regard to its trading volume. The man behind the Uniswap protocol, Hayden Adams tweeted the news that they had recently managed to exceed the trading volume of $50 billion. He further highlighted that this particular milestone had been achieved through 26,000 unique transactions that had been made via the protocol. In an earlier tweet, Adams had explained that the gas that was used on Uniswap on a daily basis was costing around a staggering sum of $420,000. This means that the annual gas fees for the decentralized exchange (DEX) is approximately $150 million, which is substantial, to say the least.

According to the statistics provided by ETH Gas Station, the total amount of gas that has been consumed by Uniswap up until now is around $12.7 million. This effectively makes the protocol the biggest consumer of gas on the list. Nonetheless, the founder of the decentralized exchange is quite ambitious and he has already floated around the idea that Uniswap could someday achieve a trading volume in trillion dollars. As a matter of fact, he even organized a small poll to see when people expected this event to happen.

A total of 1200 people responded to the mini-poll and nearly half of them were of the opinion that Uniswap would reach the cumulative volume of a trillion dollars by 2021. While there were many people who were eager to congratulate the decentralized exchange (DEX) for its unique achievement, there were also those who began to ask about its ‘rug pulls’ and the contribution they have made to this impressive trading volume. To put it simply, rug pulls is a term used to refer to fake tokens, which are a common occurrence on a decentralized exchange (DEX). 

These people asked Uniswap to provide figures that highlighted the losses that had occurred because of these rug pulls. Another common question that popped up is the fabled V3 and people asked Adams when it would make it appear and be rolled out fully. The third iteration of the renowned decentralized exchange is said to be ready in Github and yet there hasn’t been any mass deployment as yet, which begs the question of why. A number of new features have been promised in V3, including dynamic trading fees, trading pair creation without requiring both sides of the market, and low tolerance for slippage. 

Furthermore, the implementation of Optimistic Rollups is also expected for enacting Layer 2 scaling for high-speed and low-cost transactions that take place on the Ethereum Network, which has been becoming rather expensive of late due to gas prices. The founder has not given any concrete data nor has the team revealed anything, but the official launch of the V3 is expected pretty soon. After the announcement of the trading volume, the Uniswap protocol saw a 2.6% increase in its total value locked, as it reached a total of $1.37 billion, as per Defipulse.com.