Uniswap V2 Liquidity Surges by 75% Since October 2023

Uniswap V2 (UNI) liquidity increased from $1.04 billion to $1.82 billion in four months.

According to Uniswap Analytics, Uniswap V2’s liquidity has been growing strongly since October 2023. 

At the end of October, the platform’s liquidity stood at $1.2 billion. On Jan. 31, this figure rose to $1.63 billion. 

On Jan. 16, liquidity on Uniswap V2 reached its highest level in the last six months at $1.82 billion. This spike was due to the approval of the Bitcoin ETF. 

Liquidity in Uniswap V2 during the year. Source: Uniswap Analytics

Uniswap V2 holds strong amidst Uniswap V3 competition

Per DefiLlama, Total Value Locked (TVL) for Uniswap V2 has decreased since May 2021. However, in 2023, the metric remains almost stable. Thanks to a steady increase in late 2023 and early 2024, its TVL is currently at $1.619 billion. 

TVL Uniswap V2 as of July 2021. Source: DefiLama

TVL Uniswap V3 is $2.419 billion, confirming it remains the most popular “iteration” of the Uniswap DEX protocol.

Uniswap V3 has surpassed Uniswap V2 in terms of volume, with the dominance of one protocol over the other becoming evident since May 2021.

On May 16, 2021, Uniswap V2 recorded a volume of $13.54 billion, while Uniswap V3 reached $11.735 billion. By June 6 of the same year, the new protocol had significantly surpassed the old one, with volumes standing at $6.769 billion for Uniswap V3 and $3.966 billion for Uniswap V2.

Comparison of Uniswap V2 and Uniswap V3 volumes. Source: DefiLama

On Uniswap V2, the most popular token is Wrapped Ether (WETH), which has a liquidity of $717.68 million. Following closely, Tether (USDT) claims the second spot with a liquidity of $95,927,267, and in the third position is USDC with a liquidity of $95,827,267.

It is interesting to note that the meme coin Pepe is also popular on the exchange and is ranked 4th.

The list of the top coins on Uniswap V2. Source: Uniswap

Uniswap V3 has a different list of top tokens. For example, Ethereum (ETH) is in first place with a volume of $761.55 million. USDC is in second place, followed by USDT. Stablecoins are a crucial facet of cryptocurrency trading today.

It is interesting to note that Wrapped Bitcoin (WBTC) is in 4th place, while it is not included in the top rankings for Uniswap V2. Notably, the protocol prominently features Wrapped Ethereum in the first place.

The list of the top coins on Uniswap V3. Source: Uniswap

Uniswap is the largest decentralized exchange

Uniswap secures the top spot in the decentralized exchanges (DEX) ranking by volume, boasting a trading volume of $1.087 billion. Following closely in second place is the Orca platform, with a volume of $726.82 million. 

PancakeSwap claims the third spot, recently noted for engaging in speculation on the Dmail token within the same two pools.

DEX ranking by volume. Source: DefiLlama

It’s worth noting that Orca’s volume experienced an impressive nearly 50% increase over the week, while Uniswap saw a decline of 32.63%. This shift is likely influenced by Orca operating on Solana’s (SOL) main chain. Notably, on Jan. 25, SOL was valued at $86.5; by Jan. 30, the price had risen to $105.