Decentralized Exchange (DEX) and Automated Market Maker (AMM) Uniswap Layer-2 (L2) has hit a milestone with its transaction volume surpassing $200 billion in February 2024.
Uniswap L2 Transaction Volume Hits Historical High
Data from crypto analytics platform Dune confirmed that Uniswap L2 all all-time protocol volume on Arbitrum, Polygon, Optimism, and Base reached a new All-Time-High (ATH).
According to the chart, the volume is now around $208.11 billion, a huge gain from its levels last year. In February 2023, the cumulative volume of the Uniswap L2 was only $75 billion, indicating that there has been up to a 280% increase within the last 12 months.
Compared to February 2022’s volume of $13.9 billion, the recent record is a massive milestone. Within the last 24 hours, UNI the native coin of the ecosystem, has shown a positive sentiment triggered by a couple of factors including ATH transaction volume.
The Uniswap Foundation announced a proposal aimed at upgrading protocol governance, with a specific focus on the redistribution of protocol fees to UNI token holders. voting has commenced and will remain open until March 7.
Notably, this news contributed to a 15% increase in the value of the UNI token. The coin jumped to more than $13.08 reflecting the positive response of the community to the proposal.
All-time L2 volume on Uniswap just crossed $200 billion 👀 pic.twitter.com/SqbwFZzruu
— Uniswap Labs 🦄 (@Uniswap) March 2, 2024
However, the hype has slowed down a bit and the token slipped to previous levels. At press time, UNI was trading at $12.22 with a 5% increase within the past 24 hours.
UNI is Hitting Multiple Milestones
The result from the cumulative transaction volume is a clear indication of how well the decentralized exchange’s ecosystem has been performing thus far this year. There is currently an anticipation for Uniswap V4, the exchange’s non-custodial, non-upgradeable, and permissionless automated market maker protocol. Uniswap says that the protocol will go live by Q3 of this year.
Noteworthy, the news about Uniswap V4 is another propeller of UNI’s price. On February 23, UNI made an outstanding gain of 70%, fueled by the decentralized exchange changing the fee mechanism to benefit those staking the UNI tokens.
So far, UNI’s price gain has contributed significantly to a revolution in the Decentralized Finance (DeFi) sector, taking the attention from AI and focusing it on DeFi.
