Compass Investments

– Uniswap leads the DEX market with a volume of $71.1 billionwill UNIs price rise?

The latest data on Uniswaps trading volume shows that its becoming increasingly difficult for competitors to challenge this leader. Over the past month, Uniswaps [UNI] total trading volume has surpassed $71.1 billion, confirming its status as the most sought-after service for decentralized spot trading.

Even more impressive is Uniswaps ability to maintain stable trading volumes even over short periods. Over the past week, the platform processed trades totaling more than $21.3 billion. And in a single day, nearly $2.0 billion passed through the protocol. LINE_BREAP Consistently high trading volumes indicate that users are choosing Uniswap as their primary liquidity provider, rather than turning to temporary alternatives.

At the same time, PancakeSwap [CAKE] was hot on UNIs heels, reaching $29.8 billion over 30 days. However, there is still a noticeable gap between the two leaders. Uniswaps use of multiple blockchains reinforces this advantage, with Ethereum [ETH] and Robinhood Chain serving as the main sources of activity.

Thus, the growing difference in volume indicates higher liquidity and user preference, which strengthens Uniswaps position in decentralized markets.

Uniswaps current dominance in trading volume generates direct revenue for the protocol. According to Token Terminal, from January through July, the protocol generated $28.2 million in revenue from trading fees, which totaled $297.9 million.

Monthly revenue rose from $2.8 million in January to $5.3 million in June, before falling to $4.1 million in July. The peak reached in June demonstrates how higher activity can boost revenue as trading fees increase.

,detected_source_language:RU

By early August, total revenue since the introduction of fees had reached $29.8 million. More importantly, UNIfication has changed the mechanism for distributing these revenues.

The protocols fees are now accumulated in TokenJar, and users burn UNI via Firepit to claim them. These two mechanisms create a link between user participation in Uniswap and the reduction of the UNI supply, allowing trading activity to play a more prominent role in determining the tokens value.

This permanently removes tokens from circulation and adds a supply-side effect to the protocols growth. The burning of 100 million UNI from the treasury also reduced the supply, and several million more tokens have since been removed from circulation.

However, the current burn rate remains modest given that there are approximately 623 million UNI in circulation and a market capitalization of $3.85 billion. Thus, Uniswap is currently benefiting from its active trading volume, but the impact of this remains limited.

Ultimately, stable trading volumes and an acceleration in burning will be the decisive factors in determining whether this model can generate significant demand for UNI.

Over the past 30 days, trading volume on Uniswap reached $71.1 billion, cementing its leadership as the dominant decentralized exchange (DEX).

The value of the UNI token is growing, but for the token to receive substantial support, sustained token burning and stronger demand must reach a scale sufficient to provide serious support for the coin.

“,”detected_source_language”:”RU