Ethereum

Uniswap

Base

The leading Ethereum decentralized exchange, Uniswap, contributes substantially more volume to layer 2 blockchains compared to the activity seen two years ago. 
The decentralized exchange (DEX) accounts for around 37% of the total trading volume on layer 2 while running atop crypto’s second-largest blockchain, Ethereum (<a href="https://crypto.news/price/ethereum/" rel="">ETH</a>).&nbsp; 
21.co researcher Tom Wan noted that the platform’s L2 volumes experienced more than 650% growth in 24 months, increasing from around $4 billion in 2022 to over $30 billion this year.&nbsp;The analysts added that this trend could strengthen even further if more quality protocols launch on layer 2 networks like Arbitrum, Coinbase’s Base, and Optimism. 
<blockquote class="wp-block-quote"> 
 “L2s have been gaining more economic activities, specifically Base and Arbitrum, which account for 82% of the total L2 volume on Uniswap. I would expect the dominance of L2s’ volume on Uniswap will continue to grow to 50% by the end of this year.” <cite><a href="https://x.com/tomwanhh/status/1784929074122539111" target="_blank" rel="">Tom Wan</a>, 21.co researcher</cite>
</blockquote> 
Data showed that the exchange has only contributed 2.9% of the total volume on altcoin L1s, but Wan opined that this narrative may see a shift in the future.&nbsp;Wan explained that high-performance EVM-compatible L1s combined with a multichain expansion strategy could allow the DEX to capture more volume on networks like Sei and Monad.&nbsp; 
<figure class="wp-block-image size-large">
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 <img loading="lazy" decoding="async" width="1024" height="378" src="https://crypto.news/app/uploads/2024/04/GMVPpP5WUAAGq6v-1024x378.png" alt="Uniswap DEX comprises 37% of Ethereum L2 volume - 29"> 
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 UNI DEX volume sheet | Source: Tom Wan, 21.co via Dune Analytics
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</figure> 
<h2 class="wp-block-heading" id="crackdown-on-uniswap">Crackdown on Uniswap</h2> 
Uniswap (<a href="https://crypto.news/tag/uniswap" target="_blank" rel="">UNI</a>) was the first DEX on Ethereum and remains the largest on-chain trading venue on the crypto L1 blockchain. The protocol <a href="https://crypto.news/uniswap-trading-volume-record/" rel="">boasts</a> over $2 trillion in cumulative trading volume in 17 chains. DefiLlama states users have also deposited more than $5.5 billion in total value-locked.&nbsp; 
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 <picture loading="lazy" decoding="async" class="wp-image-14269221"> 
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 <img loading="lazy" decoding="async" width="1024" height="486" src="https://crypto.news/app/uploads/2024/04/Screenshot-429-1024x486.png" alt="Uniswap"> 
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 <figcaption class="wp-element-caption">
 Uniswap stats | Source: DefiLlama
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Founded in 2017 by Hayden Adams, the Brooklyn-based crypto service provider now faces possible enforcement action from the U.S. SEC, which is currently embroiled in a broad crypto industry crackdown.&nbsp; 
As crypto.news reported, the SEC <a href="https://crypto.news/sec-serves-wells-notice-to-uniswap/" rel="">served</a> Adams’ business a Wells Notice, and the DEX intends to defend itself against a “disappointing but not surprising” decision.&nbsp; 
 Read more: <a href="https://crypto.news/crypto-industry-furious-as-sec-goes-after-uniswap/" rel=""> Crypto industry furious as SEC goes after Uniswap </a>

Uniswap DEX comprises 37% of Ethereum L2 volume

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