Uniswap's increasing user activity has this effect on UNI

Contents

Activity peaks The board continues to make progress

Uniswap experienced increasing user activity and achieved 300 million swaps on its protocol.
The DAO explored partnering with Zero Protocol to improve its ecosystem.

Uniswap [UNI], a dominant player in the cryptocurrency exchange industry, has witnessed a resurgence in activity lately. Despite challenges and a growth plateau during difficult market conditions, Uniswap now showed signs of renewed vitality.

Realistic or not, here is UNI’s market cap in BTC terms

Activity peaks

According to data from Token Terminal, the number of daily active users on Uniswap increased on September 30. Additionally, the Uniswap Protocol reached a major milestone by completing more than 300 million swaps.

Uni exchange…
active users up ????????
trading costs down ???????? pic.twitter.com/lX7V3uWNF9

— Tokenterminal (@tokenterminal) September 30, 2023

These swaps represent transactions on the platform. In particular, the increasing number of swaps indicated a growing interest in decentralized exchanges (DEXs), which also positively contributed to the ecosystem.

Change szn with full power ????

Uniswap Protocol has officially reached 300,000,000 swaps ???? pic.twitter.com/6taofceNkJ

— Uniswap Labs ???? (@Uniswap) September 28, 2023

However, despite the increase in activity, there is a worrying trend of declining overall reimbursements. This decline in fee income could pose challenges for Uniswap’s sustainability and development.

The board continues to make progress

Despite these challenges, Uniswap’s governance community remained proactive. Recently, the Uniswap DAO has made important decisions to improve the protocol’s capabilities.

A remarkable development was the decision to bet on the Polygon [MATIC] zkEVM (Zero Knowledge Ethereum Virtual Machine). Additionally, a proposal outlined a partnership between the Uniswap DAO and Zero Protocol, aimed at a “friendly fork” collaboration.

This collaboration aimed to create a new version of Uniswap on the Polygon zkEVM, while maintaining the collaborative relationship with the original protocol.

It involves integrating Zero Protocol as a friendly fork of the Polygon zkEVM chain, leveraging Uniswap’s established backend infrastructure and receiving support for ecosystem-funded tools.

As part of the alignment of interests, the DAO will receive a 10% token allocation. At the time of writing, the proposal was passed with 99.99% of the votes.