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- With over 900,000 users, Uniswap posted its highest monthly growth since the beginning of the year.
- Avalanche and StarkNet followed suit, but Uniswap’s liquidity decreased.
May has proven to be a remarkable month for the world. Uniswap [UNI] Monthly users have grown from about 800,000 initially to 969,466 as of this writing. The data obtained from the token terminal is clearly that this was the best growth ethereum [ETH]A base decentralized exchange (DEX) can be seen all year round.
Realistic or not, here it is UNI Market Cap in AVAX Equivalents
Increased participation and competition
For most of the first quarter (Q1), the project struggled to add more than 100,000 users. User growth in April was largely negligible.
Source: Token Terminal
The surge in user numbers meant that a surprisingly high percentage of individual addresses transacted over the Uniswap network during that period. Additionally, Uniswap’s decentralized nature, support for ERC-20 tokens, and a large token launch may have contributed to this price increase.
Around that same May, Uniswap allowed traders to: access Some memes developed under the Ethereum blockchain. This has increased DEX participation.
Despite the significant explosion in metrics, the emergence of competing Layer 2 (L2) networks such as: Starknet Stay alert to Uniswap. Over the last 30 days, the number of users of unprivileged distributed Zero Knowledge (ZK) rollups increased by 84.7%.
However, the number of users only peaked at 764,320.For Layer 1 (L1) projects avalanche [AVAX]was able to increase by 35.8%, thereby surpassing StarkNet’s numbers.
Avalanche is itself convincing It is an alternative as it can be connected to a sidechain. The project’s ability to link with L2 subnets may also have influenced the rise.
countdown
Despite the increase in users, the liquidity on the protocol was mostly on the decline for most of the month. According to Glassnode, Uniswap Liquidity At the time of writing, it had fallen to $5.4 million.
Source: Glassnode
How much 1,10,100 UNI worth today?
Cryptocurrency liquidity refers to the ease with which tokens can be exchanged for other tokens through the order book. High liquidity means increased trading volume and ease of filling orders despite a large number of market participants.
However, low liquidity like Uniswap means that it is difficult to buy and sell tokens on DEX. As May draws to a close, Uniswap may be in focus again. Will this protocol have more impact on the growing user base, or will it prove better in the final part of the quarter? Only time will tell.
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