- Uniswap plans to launch V4 in the third quarter of 2024.
- Despite the growth, there are concerns about MEV bots and arbitrage transactions.
The Uniswap Foundation has unveiled its preliminary plan to launch Uniswap [UNI] v4 in Q3 2024.
New developments
The project is currently in its early stages and includes core code completion, testing, gas optimization, security enhancements, and peripheral component completion.
In the future, the second phase will include conducting comprehensive audits, including both comprehensive professional audits and community involvement in audit competitions.
Source:
Uniswap has continued to see an increase in activity in recent months. During this period, the number of daily active users on the network grew by 26.2%.
Furthermore, fees generated by the protocol increased by 83% during this period. The higher fees not only boosted the platform’s revenue but also provided additional resources for continued development.
Source: token terminal
Some trouble ahead
However, sentiment around Uniswap could be affected by the growing number of MEV bots and ARB transactions.
For context, MEV stands for Miner Extractable Value, and it refers to the profits miners can make by reordering and block-blocking transactions in a way that benefits them.
MEV bots are automated systems or algorithms that actively attempt to exploit opportunities within the transaction order and execution process to maximize profits for miners.
Arbitrage transactions, on the other hand, take advantage of price differences for the same asset on different platforms or markets.
In the context of decentralized exchanges such as Uniswap, arbitrage transactions can occur when there are price differences between Uniswap and other trading platforms.
Traders use automated tools or bots to quickly exploit these price differences, buying the asset where it is cheaper and selling it where it is more expensive, thus making a profit.
Realistic or not, here is UNI’s market cap in BTC terms
The growing presence of MEV bots and arbitrage trades could impact sentiment around Uniswap as they introduce an element of complexity and potential manipulation into the trading environment.
Traders may have to deal with increased competition, potential frontrunners, and other tactics used by these automated systems that can impact transaction results and overall market dynamics.
Source: Dune Analytics
Looking at the sign
At the time of writing, UNI was trading at $7.51 and its price was up 4.63% in the last 24 hours.
Source: Santiment