- Uniswap saw its trading volume declining for three consecutive months in 2022.
- The DEX recorded a YOY increase in March despite faded transactions figures throughout 2022.
- Uniswap volume trounced $51.67 billion in 2022 March.
- Uniswap witnessed a drop in trading volume in March, touching lows never seen since 2021 September.
March proved lucrative for the crypto market, but sectors like DEXs and NFTs suffered as far as volume is concerned. For instance, Uniswap recorded trading volume worth around $51 billion during the 2022 Q1 final month 9data from Be (in) Crypto Research.
Though such figures appear high when considering the likes of 1inch LP, SushiSwap, Balancer, and Curve, UNI’s trading volume was lower from February. The trading volume in 2022 February hovered at $54 billion, indicating a 5% drop within 31 days.
Uniswap 2022 Monthly Volumes Yet to Surpass 2021 Highs
The fading interest in the leading DEX by trading volume might impact Uniswap fortunes detrimentally. That is because Uniswap competed with decentralized exchanges on Binance Smart Chain, Tron, Cardano, Solana, and Ethereum.
Though UNI’s volume stayed 54% higher since 2021 March, which recorded approximately $33B, the DEX traded beneath the milestones touched in 2021.
Ethereum protocols saw a colossal surge in user activity during the market peak in 2021 May, when ETH first crossed $4K. The overall Ethereum transactions were around 45 million as of 31 May 2021.
That led to positivity in Uniswap, one of the top-performing Dapps. Meanwhile, the decentralized exchange recorded approximately $4.72 billion in 2021 May.
However, Uniswap saw trading activity on a steep fall as the market sustained a massive crash that triggered a bearish engulfing.
Such developments saw May’s volume dropping 33% towards $54.66B in 2021 August before losing 36% to $53.44B in 2021 September and dwindling further in 2021 October. It saw a brief 0.724% drop to close 2021 December near $84.93 billion.
Effects of Dropping Volumes on UNI
Uniswap protocol uses UNI as its novel token. The alt flourished in 2021, touching new ATHs of $44.97 on 3 May. However, the 2022 bearish cycle saw UNI losing over 70%.
The token traded around $10.52 on 1 March and touched monthly peaks of $12.44 on March’s last day, eventually closing at $11.27 on 31 March 2022. The past 30 days had UNI trading within the $8.14 – $12.43 range.