Uniswap Revenue Flies To All-Time Highs: Is UNI Undervalued?

Dalmas Ngetich

9 months ago

2 mins read

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UNI, the native token of Uniswap, one of the top decentralized exchanges (DEXes), is under immense selling pressure. From the daily chart of the UNIUSDT, the token is down 62% from March highs, though prices have stabilized in the past few trading weeks.

To put in the numbers, chart data shows that it is up nearly 35% from August lows, absorbing selling pressure.

Uniswap price trending downward on the daily chart | Source: UNIUSDT on Binance, TradingView

UNI Is Down But Uniswap Generates $50 Million In Revenue So Far

Though UNI is far off from all-time highs, shaving nearly 85% from 2021 peaks, other exciting developments might help prices in the long term. Token Terminal data on August 25 shows that the DEX has generated $50 million in revenue so far.

Uniswap allows traders to trustless swap tokens on multiple platforms and blockchains. Originally, it launched on Ethereum in November 2018 before being deployed on the BNB Chain and various layer-2 platforms for Ethereum, including Arbitrum and Optimism.

Uniswap fees | Source: @tokenterminal via X

Unlike Binance, which is custodial, Uniswap users only need a non-custodial wallet to connect and swap. All trades are smart contracts-led and without an intermediary. At the same time, there is a broader pool of tokens, some of which are unavailable on top centralized exchanges like Binance.

The advantages offered by Uniswap have seen the protocol expand the assets under management to over $4.73 billion, according to DeFiLlama. As of August 26, Uniswap is available on over ten platforms, but the protocol manages over $3.8 billion on Ethereum.

Cumulatively, DeFiLlama data has generated over $2.3 billion in fees. All these fees are from swaps on Ethereum and all other platforms. In the last 24 hours, Uniswap has generated over $854,000 in fees.

Is The Future Bright, Developers Prepare For V4

As crypto prices expand, it is also highly likely that DeFi activity will rise. Since the recovery from mid-October 2023 to the March 2024 high, DeFi total value locked (TVL) more than doubled. This expansion reflects rising interest and confidence from the community. According to DeFiLlama, DeFi TVL across all networks stood at around $40 billion in October but rose to over $106 billion by March 2024.

As DeFi TVL rises, Uniswap will enable more swaps, increasing its fees. Moreover, the DEX will be a go-to platform as it enhances its protocol.

Earlier this month, Uniswap Labs, which is developing the protocol, announced a $2.35 million prize pool for developers. The fund aims to reward developers who pick out flaws on Uniswap v4 before rollout. Once live, the new version of the DEX will offer new features, including custom oracles and Hooks for even more flexibility.

Feature image from Adobe Stock, chart from TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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