Uniswap logs low trading volumes, but just on this network
August 2, 2023
By Adewale Olarinde
Read Uniswap (UNI) Price Prediction 2023-24
Uniswap’s volume on Ethereum declined as another L2 absorbed the volume.
By UNI faced a price correction after consecutive days of an uptrend.
According to a recent report, Uniswap’s [UNI] trading volume has declined. This downward trend prompted a look at whether the dip has affected other crucial metrics and the trajectory of the UNI token. As trading volume often serves as a barometer of market activity and interest, the UNI token’s performance is inextricably tied to the health of the Uniswap ecosystem.
Uniswap volume declines, but…
Glassnode’s recent post shed light on Uniswap’s volume decline on Ethereum, particularly compared to previous years. The data showed only two notable exceptions to this trend: a surge in volume during the rise of interest in Liquid Staking Tokens (LSTs) and another spike during the launch of meme tokens on the platform.
Interestingly, the decrease in volume was not due to a lack of transactions on Uniswap. Upon closer examination of the distribution of trade volume across different Layer 2 solutions, per Glassnode, a more comprehensive understanding emerged. A significant portion of trading activity has shifted away from the Ethereum mainnet and towards Arbitrum.
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