Uniswap Hosted A Record Number Of Traders In May All Because Of Memecoin Fever

  • Uniswap’s performance has been so far lackluster in 2023

Since its advent, Memecoin has taken the crypto markets by storm. A number of meme coins have created quite a hullabaloo on the decentralized exchanges in the past couple of years. And Uniswap is one of the major DEX that hosts more than half a million users in this niche. 

As per the latest report from Dune Analytics, the number of unique wallets being traded on Uniswap has hit an all-time high. It has touched the figure of 523,606 which is 50% higher than what it was in January 2022.

Another feather that it has added to its cap is the trading volume of $1.15B which is 4.5 times more than its chief competitor Pancakeswap. 

Despite all these achievements, its proprietary token UNI has not lived up to expectations. It has underperformed ETH causing gloom and doom among its investors since March. 

At the same time, speculations around the meme coins are giving mixed results in the investors’ circles. While some investors are making a fortune with it, many others are losing to the rumors of great profits. According to experts, it’s happening due to the FOMO-driven market trying to get hold of small-cap assets.

Notably, in the previous month, meme coin also amped up the on-chain activity that gave rise to a high burn rate for Ethereum.

UltraSound Money reported that the ETH blockchain’s transition to proof-of-stake (POS) consensus which happened eight and a half months ago, is fuelling this activity. Since then, almost 51% of all Ether amounting to $259M has been burnt. 

A Spike In Arbitrum Volume

Apparently, the movement in Uniswap’s value has affected Arbitrum trade as well. While the former saw 88% of its value locked on Ethereum, the later got benefitted with a 19% share in daily trade. 

Uniswap ventured on a limited multi-chain expansion by using the dominant Layer 2 networks. Today, the protocol is alive and kicking on Zksync Era, Polygon, Optimism, and Arbitrum along with the alternatives Celo and L1s BNB Chain. 

As for the governance, something big happened on Wednesday. The bigwigs from Uniswap proposed Uniswap v3 on Base which is a forthcoming Layer 2 network from Coinbase. The draft was acceded unanimously. 

On the other hand, Coinbase is all set to give a major upgrade to its launch base. On June 6, its Optimism protocol will be equipped with the Bedrock feature. The new network will be built using Optimism’s OP stack and it will enable the Layer 2 mechanisms to adopt a modular design. As a result, the OP stack-based L2s will seamlessly swap between different execution engines while being foolproof. 

Later on, these OP stack-based chains can join the Optimism “Superchain”. In the future, these layer-2 optimism plans will be integrated into the pseudo-shared networks.

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