Uniswap, DeFi Outperforms Ethereum In Daily Fees Amid Recent Bear Market

The latest market analysis confirmed that one of the leading decentralized exchanges (DEX), Uniswap, has overtaken its host blockchain Ethereum in terms of fees paid over the past seven-day rolling average.

The surge appears following a recent spike of high demand for DeFi products amid the current crypto market winter that has left many digital asset prices shedding more than 60% from their previous highs.

Decentralized finance (DeFi) platforms such as Aave and Synthetix saw an increase in daily fees paid over the past seven days. Other native tokens such as Compound (COMP) also increased over the same period.

Data acquired from Crypto Fees confirms that traders on Uniswap accounted for an average daily total of $4.87 million worth of fees between June 15 and June 21, 2022, outperforming Ethereum users who accounted for $4.58 million over the same period.

During this time, Uniswap’s most advanced v3 protocol hosted on the Ethereum blockchain gained the lion’s share, accounting for $4.4 million, while the v2 variant contributed a share of $336,556.

Nonetheless, Ethereum overtook Uniswap on the total fees for two days out of the seven. In terms of daily fees generated, Uniswap won $8.36 million on June 15 compared to Ethereum, which amassed $7.99 million the same day.

Launched in 2018, Uniswap is a decentralized exchange on Ethereum chains that enables peer-to-peer (P2P) swaps of Ethereum-based tokens without a central authority to facilitate trade. Under Uniswap’s functionality, liquidity providers receive 100% of the fees paid by traders on the DEX.

Although Ethereum is the blockchain home for many DeFi projects, it’s renowned for its high fee structure. In that case, Uniswap outperforming Ethereum in daily fees over a week was an achievement.

According to CoinGecko, Uniswap’s price has surged 17% in the past seven days, trading at $5.18 at the time of publishing. The recent acquisition of the NFT marketplace aggregator “Genie” and the appointment of the former president of the New York Stock Exchange, “Stacey Cunningham,” as the new adviser of Uniswap Labs might be the main factors accelerating the recent hike.

DeFi Surges Amid The Current Bear Market

Despite the current crypto bear market, the recent market data analysis shows that the demand for several DeFi platforms has increased alongside decentralized exchanges such as Uniswap, which saw a massive surge.

Decentralized platforms Aave and synthetic derivatives trading platform, Synthetix took the third and the fifth in terms of average daily fees paid in the last seven days, recording $981,883 and $600,214, respectively.

Much like Uniswap, lending protocol Aave saw an explosive surge in daily fees paid on June 15, increasing more than 69% to $1.44 million. At the time, its native token, Aave increased by over 22%.

On the other hand, Sythentix emerged as the most notable decentralized protocol in the past seven days. The platform experienced a staggering 928% increase in fees paid between June 11 and June 13, with its figures reaching $848,297. However, its total paid fee plunged slightly on June 17 to roughly $400,000 before retesting another 150% to $1 million on June 19.

The market boom for Sythentix seems to accelerate, with its native token gaining more than a 105% increase in price since late last week at the time of publishing.

According to many industry experts, the recent Synthetic Improvement Proposal 120 that went live last week might be the main factor accelerating the recent surge. The SIP-120 now allows users to “atomically exchange digital assets without fee reclamation; hence increasing the speed of trading.

During the same period, another decentralized lending platform, Compound followed the same trend generating a mere seven-day increase of $11,753. Although Compound has been on a downward spiral since April, its native has retested a positive trend increasing more than 16% within that time frame to sit at $40.50 at the time of publishing.