Journalist
Posted:
- Uniswap revenue grew as activity on the protocol started to rise.
- UNI tokens price followed suit, however network growth declined.
Uniswap [UNI] has been one of the most dominant DEXes in the DeFi sector over the last few years. Due to this, the revenue collected by Uniswap has grown to new heights.
According to recent data, Uniswap Labs’ onchain revenue crossed $1 million.
🤑@Uniswap Labs onchain revenue surpasses $1M pic.twitter.com/oPf4Pssuk6
— Token Terminal (@tokenterminal) November 10, 2023
Uniswap’s revenue rise is a big deal. It shows its growing popularity.
The higher revenue could attract more users and developers and they might want to use the platform more. More activity could also lead to new ideas, more funds, and growth.
It may also lure more projects and partnerships. But with success comes bigger challenges, Uniswap would need to handle growth carefully. It has to balance growth with security and user experience as well.
Because the DeFi space is competitive, Uniswap’s success might make others work harder. This can benefit users with better features and lower fees.
One of the reasons for the high revenue collected on the Uniswap protocol would be the surge in daily activity seen on the network.
According to Token Terminal’s data, the number of daily active users on the network grew by 16.5%. The surge in revenue could affect Uniswap positively as it gears up to launch its android app.
Your NFT collection is your onchain persona – wouldn’t you want to show the world? 🤔
In the Uniswap wallet, your NFTs are always on display 🎨 pic.twitter.com/JVk8MaQkXw
— Uniswap Labs 🦄 (@Uniswap) November 9, 2023
After this, the protocol could attract even more users to the network. This would positively affect the liquidity and growth of the network.
Despite the need for high development activity, the number of code commits being made has declined. A falling number of code commits may impact how new updates and upgrades get added on the Uniswap network.
Coming to the UNI token, at press time, UNI was trading at $5.35. Over the last 24 hours, the price of the token had grown by 1.84%.
Its network growth declined during this period, suggesting that new users were losing interest in the token. This could affect the momentum of the price in the future.
The velocity at which UNI was trading grew. This implied that the number of times UNI was moving between addresses had grown. The rising velocity of UNI may aid its growth in the future.
Source: Santiment