As of the press moment, Uniswap has generated $7.1 million in fees over the past 24 hours. Meanwhile, Bitcoin’s 1-day fees reached $4.6 million. Both Uniswap and Bitcoin are remaining behind Ethereum the daily fees’ revenue of which has reached $117.2 million.
For two days in a row, Bitcoin (BTC) has been superseded by Uniswap (UNI), the leading decentralized crypto exchange built on the Ethereum (ETH) blockchain. Uniswap beat Bitcoin in terms of the daily revenue that comes from fees.
Hayden Adams, the founder of Uniswap, shared the news on his Twitter:
👀 @Uniswap v2 LP fees finally passed Bitcoin network fees on the 7 day average
🤑 Would be even higher if https://t.co/lUNKPjwNZB tracked v3 pic.twitter.com/aH4Vr9kB7o
— hayden.eth 🦄 (@haydenzadams) May 11, 2021
As of the press moment, Uniswap has generated $7.1 million in fees over the past 24 hours. Meanwhile, Bitcoin’s 1-day fees reached $4.6 million. Both Uniswap and Bitcoin are remaining behind Ethereum the daily fees’ revenue of which has reached $117.2 million. As for the 7-day average fees, those of Uniswap have totaled $5.9 million, compared with Bitcoin’s $5.3 million.
Some are explaining such a result by the high gas fees that Uniswap has. However, as Adams responded to the critics, the revenue in question was actually swapping fees paid to liquidity providers rather than gas fees. In other words, gas fees in ETH that Uniswap is generating are exponentially higher than Bitcoin’s transaction fees.
This is swapping fees paid to LPs
Not Ethereum network fees paid to Ethereum miners (the high fees people are upset about)
— hayden.eth 🦄 (@haydenzadams) May 11, 2021
Further, Uniswap’s founder stated that Ethereum is in urgent need of a layer-two scaling. Uniswap users alone have already spent around $42 million on gas fees today, which is almost five times higher than what was spent on Bitcoin network fees.
How badly do we need Etheruem L2s?
Today @Uniswap users ALONE spent ~$42m on Ethereum gas fees.
This is almost 5x what was spent on Bitcoin network fees during the same period https://t.co/8nL6P8gRkq
— hayden.eth 🦄 (@haydenzadams) May 12, 2021
Gas fees are the transaction fees that users pay to miners on a blockchain protocol to have their transactions included in the block. For Ethereum users, these fees are quite high, as Ethereum is one of the most used blockchains. Besides, gas fees on Ethereum are soaring due to finite block space and an ever-increasing volume of on-chain activity. To handle this issue and scale Ethereum, there is a roadmap towards Ethereum 2.0. The transfer to the new network will be conducted through three phases and completed in 2022 or 2023.
Uniswap V3 to Become the most Flexible and Efficient AMM
Uniswap V1 launched back in November 2018. In May 2020, Uniswap released the V2 version, with new features and optimizations. Last week, Uniswap V3 came live.
Targeting an L1 Ethereum main net launch on May 5, with an L2 deployment on Optimism set to follow shortly after, Uniswap V3 aims to become the most flexible and efficient AMM ever. Its features include higher liquidity with up to 4000x capital efficiency relative to Uniswap V2, which means higher returns on their capital and enabling liquidity providers to earn variously depending on the level of risks. In addition, capital efficiency provides low-slippage trade execution that can surpass both centralized exchanges and stablecoin-focused AMMs. Ropsten, Rinkeby, Kovan, and Görli testnets will deploy the Uniswap v3 smart contracts in the coming days.
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