In terms of fees generated in the crypto space, Uniswap performed exceptionally well over the past year. Uniswap ranked third in terms of fees generated, outperforming other protocols such as PancakeSwap, LIDO, and BNB chain, according to token terminal data.
As a result of the fee increase, the revenue collected for the decentralized exchange increased (DEX). Uniswap’s revenue increased by 62.2% in the last week, according to token terminal data.
Uniswap’s financial performance was strong, but the number of monthly active users on the platform, as well as the number of unique users, declined, according to Dune Analytics.
This could have an impact on the DEX’s long-term success. A decrease in user activity usually has an effect on the revenue generated by the DEX.
Furthermore, the pool value on Uniswap has decreased over the last year. The pool value is the total value of assets traded on the DEX, and a drop in pool value can indicate a drop in overall trading activity and liquidity.
This could be a problem for Uniswap because a lack of liquidity can make it difficult for users to buy and sell assets on the platform.
Over the last three months, the TVL for Uniswap has decreased in tandem with the pool value. Messari’s data show that the TVL fell from $3.3 billion to $2.5 billion during that time period.
Despite these negative developments, the MVRV ratio of the UNI token, Uniswap’s native token, has improved.
To put things in context, the MVRV ratio measures the market value of a token relative to the cost of acquiring it, and a rising MVRV ratio can indicate that holders are optimistic about the token’s long-term prospects.
Furthermore, the decline in daily active users and profit transactions suggests that addresses may still be holding onto their UNI.
Despite the decline in some key metrics, investors appeared to be optimistic about the future of Uniswap and the UNI token.