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As cryptocurrency traders switch to self-custody, Uniswap web usage surges

The number of users on Uniswap’s web app recently increased to a new 2022 high, the company officially revealed. Given that recent occurrences suggested that many centralized exchanges might not have sufficient reserves, this result is hardly unexpected.

As a result, cryptocurrency users have been withdrawing their funds from exchanges. Decentralized exchanges (DEXes) like Uniswap have experienced a rise in activity as a result.

The most recent post from Uniswap recognises the rise in demand for self-custody options and transparency. Decentralized exchanges have gained more users as a result.

The primary cause of traders’ migration to DeFi is FTX’s role in sowing the seeds of mistrust for centralized exchanges. Traders have realized that it might not be best to hold bitcoins on exchanges. If more traders switch to DEXes, the utility of DEXes could skyrocket during the following bull run.

The immediate result of Uniswap already demonstrates an increase in the number of addresses accessing the DEX. This month, there have been an increasing number of addresses transacting on UNI that have a non-zero balance. At the time of writing, they were at their highest point in the previous three months.

Image Source: Glassnode

 

Since the middle of October, both new addresses and active addresses have shown steady growth. Recently, they peaked in mid-November, and then they changed course. The increase is the result of renewed demand at recent lows. It is proof that short-term demand has decreased that both active addresses and new addresses have changed.

Based on the aforementioned data, it is possible that Uniswap’s reported boost in utilization was only temporary. There was a noticeable spike in volume and transactions this week, according to the DEX’s volume and transactions metrics. The same metrics have, however, changed just as quickly.

Image Source: Glassnode

 

It’s important to note that this week saw new 3-month highs for both volume and transactions. This suggests that this week has seen more activity, which may be related to investors’ switch to DEFI.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.