• Uniswap [UNI] recorded a 44% YTD growth until mid-February, with the highest ‘network penetration’ amongst major DEXes on Ethereum.
• Trading activity & TVL suffered amid market uncertainties and liquidity crisis since mid-February.
• UNI remains the most widely held token by top Ethereum whales at the time of writing.
Uniswap’s [UNI] Price Prediction 2023-2024
Uniswap [UNI], the largest decentralized exchange (DEX) by trading volume, made promising gains since the start of 2023. In fact, the native token recorded a growth of 44% on a year-to-date (YTD) basis until mid-February, after which market uncertainties got the better of the coin. A blockchain analytics firm stated that Uniswap had the highest ’network penetration‘ among major DEXes on Ethereum [ETH]. Network penetration was 46% for Uniswap at the time of writing, well over other DEXes like Sushiswap [SUSHI] and Curve Finance [CRV]. Despite increased competition across Ethereum, Optimism and Arbitrum, Uniswap maintained its dominance with high network penetration compared to user growth on Ethereum from July 2020 to July 2021.
Slowdown in Trading Activity & Total Value Locked
Uniswap was popular among users who rushed towards DEXes to secure their funds due to FTX contagion. The start of 2023 saw a sharp increase in trading activity but as market uncertainties and liquidity crisis came back to bite crypto markets, Uniswap too felt pinch. Since mid-February, trading volume halved until press time while daily active users fell by more than 18%, as per Token Terminal. On total value locked front too, Uniswap faced a decline with 10% decrease in last seven days which was one of biggest drops among major DEXs according to DeFiLlama.
Retention Rate for Whales
User distribution trends across DEXes showed that Unisawp managed to retain majority different user segments including retention rate 80% for whales supported by data from WhaleStats showing UNI being most widely held token by top Ethereum whales at that time.
Competition Across Ecosystem
With increased competition across #ethereum, @optimismFND, & @arbitrumcan @Uniswa maintain its dominance? To measure market share and growth potential Messari analyze ’network penetration‘, comparing particular protocols engaged users to networks total user count.
In conclusion even though there are competitors entering into space such as Optimism and Arbitrum but UNI still is leader when it comes network penetration despite slowdown in trading activity and value locked because it still is preferred choice for major whale players in ethereum ecosystem thus having highest engagement rate which makes it leading protocol even though it may face challenges from competitors coming up but still holds strong position .