About This Article:
In this article, we will examine layer 2 networks in Uniswap.
Uniswap is one of the most powerful and largest decentralized platforms in the cryptocurrency world, following its successful launch on the Ethereum network in previous years.
After its significant success on the Ethereum network, Uniswap started to add layer 2 networks.
With new versions and special technologies, it was able to achieve tremendous success on these networks as well.
Now, after years of activity, we will examine the layer 2 networks of this crypto giant to gather interesting insights and statistics.
First Trade in Each L2 Chain:
The lifetime of layer 2 networks on Uniswap is determined based on the days until November 1, 2023.
The calculation is based on the first trade on each network.
Arbitrum, with 882 days, is considered the first layer 2 network on Uniwwap, while the Base network is the newest layer 2 network with only 92 days as a young network active on Uniswap.
Difference in Distribution of Trading Activity:
By examining the types of Uniswap users, we have identified an interesting classification.
We consider trades less than $10,000 as retail users, trades between $10,000 and $100,000 as large retail users, and trades over $100,000 as whale users.
The number of whale trades on Arbitrum network is extremely high, with over 28.4K trades observed above $100,000. This is despite the fact that the number of whale trades on the Celo network has been twice as many.
The number of retail trades on the Optimism network is higher than that of other layer 2 networks active on Uniswap, with a total of 51.5M trades.
On the other hand, the Avalanche network has the lowest number of trades in this category, with only 363.8K trades.
The average trade value on the Arbitrum network was around $2.3K, while the Celo network had the lowest average trade value at $99.4.
Significant Spikes or Drops in Activity:
Uniswap Events:
December 12, 2022 12:00 UTC
Delisting UNI/USDC Trading Pair From LBank LBank will delist the following trading pairs at 12:00 on December 12, 2022 (UTC) and stop the related deposit functions: LINK_USDC, AAVE_USDC, UNI_USDC, ZEC_USDC, ATOM_USDC, ADA_USDC, EDEN_USDT, GOLD_USDT
March 15, 2023 UTC
Uniswap is live on BNB Chain Uniswap is now live on @BNBCHAIN🔶🦄 Start swapping your fave BNB tokens on the Uniswap web app today! app.uniswap.org
April 13, 2023 UTC
Mobile wallet is available
May 17, 2023 UTC
Uniswap integrates Polkadot (DOT) into its ecosystem via Moonbeam parachain
May 18, 2023 UTC
WalletConnect 2.0 is now integrated in Uniswap wallet
June 5, 2023 UTC
Single-sided yield opportunities for your UNI
June 2023 UTC
Uniswap Labs released a code draft for Uniswap v.4.0
July 17, 2023 UTC
On July 17th, Uniswap announces the launch of a beta version of a new permissionless, open source (GPL), Dutch auction-based protocol for trading across AMMs and other liquidity sources.
September 23, 2023 16:00 UTC
Uniswap will participate in ETHGlobal in New York on September 23rd. The discussion will primarily focus on Uniswap v.4.0.
The biggest spike in terms of trade volume in Uniswap is related to the Arbitrum network, which introduced the Arb token to the market on March 23, 2023.
Investors’ expectations from Arbitrum were much higher than Optimism, leading to the Arbitrum network registering over $2 billion in trade volume in March 2023.
owever, bearish state in the crypto market and the impact of the Arb token price caused a decrease in trades on the Arbitrum network.
Top 10 Tokens Traded Across Chains:
The largest volume of trade on layer 2 networks is related to famous tokens.
In fact, tokens such as ETH, Wrapped ETH, BTC, and the governance tokens of each network, along with StableCoins, are among the top 5 tokens with the highest trade volume.
A noteworthy point is the trade volume of $70 billion on the WETH token on the Arbitrum network, as well as the trade volume of $35.7 billion on the USDC token on the Polygon network.
Impact of Gas Costs on L1 Usage:
By measuring the average gas per transaction in the last 12 months, we have obtained the following results:
The highest gas fee on Ethereum was recorded in May 2023, reaching around $34.
On the other hand, the lowest average gas fee per transaction was observed in December 2022, at around $6.
Impact of Gas Costs on L2 Usage:
The gas fee per transaction on Arbitrum network exhibits behavior similar to Ethereum.
However, gas fee on Avalanche network has been declining since March 2023.
In contrast, gas fee on Optimism network has increased since May 2023, despite the Bedrock update. This increase in transactions could be the reason behind it.
The Base network has also shown a downward trend on gas fee since August 2023, reflecting the impact of new updates on this young network.
BNB network has maintained a steady trend, while the Polygon and Celo networks have experienced a downward trend since February 2023 and March 2023, respectively.
In October 2023, Celo emerged as the cheapest network with an average gas price of $0.03 while Optimism was the most expensive network with an average gas price of $0.26.
However, it is important to note that the number of transactions on Optimism is not comparable to that of Celo. The continuous and impressive growth of the Optimism network has led to an increase in transactions.
Network Congestion:
We have considered a series of specific criteria to assess the Ethereum network conditions for Uniswap trades.
The green lines in the diagram represent the median and average gas fee per transaction over the last 12 months.
If the average gas fee is above the green line, it indicates that the network is busy.
If the average gas falls between the two green lines, it indicates the normal state of the network.
Conversely, if the average gas is below the green line, it indicates a quiet state for the Ethereum network.
In December 2022, we only observe the quiet mode, which is a rare occurrence. During this month, we observed a very low average gas fee, indicating a quiet state for the network.
Number of New Tokens in Uniswap L2 (Monthly Cumulative):
You can see the number of new layer 2 tokens available for trading on Uniswap in the chart above.
In August 2023, the Base network on Uniswap has achieved an unprecedented record, with over 570 new tokens ready for trading.
This represents a new revolution in Uniswap, showcasing its remarkable speed and growth.
It is a wonderful statistic for Uniswap to achieve 100% readiness in such a short period of time.
Conclusion:
Undoubtedly, after its successful activity on the Ethereum network, Uniswap continues to operate on layer 2 with its innovative ideas in the decentralized world.
Detailed planning and pure ideas have led to the introduction of Uniswap version 4 in the crypto market.
“A bright future is the dream of visionary thinkers.”