Last month, Uniswap (UNI), the world’s largest decentralized exchange (DEX), saw substantial growth. The power center of DeFi highlighted on Twitter that its monthly interface investor count reached 523,606 in May, a peak since the flagship V3 version was launched two years ago.
Uniswap: The King of DEXs
Detailed examination of data from on-chain analysis firm Dune revealed that the May figure significantly surpassed the previous record set in January 2022. Remarkably, this number represents growth of over 50% compared to the previous month.
The Uniswap team, following its successful May performance, stressed its status as the world’s largest on-chain protocol after executing over $1.5 trillion in transactions. It was also the largest decentralized application (dApp) on the Ethereum 
$2,427 (ETH) chain, significantly contributing to the network’s liquidity and DEX volume.
With a 24-hour volume of $832.78 million, triple that of second-place PancakeSwap (CAKE), Uniswap became the number one DEX in the Web3 space. To put it in perspective, this comprised 87% of Ethereum’s total DEX volume.
However, despite its dominance, the protocol’s total volume has been decreasing gradually since the record levels reached in March. According to Token Terminal, the increase in user numbers in May led to a 22% rise in network transaction fees. Despite increased trading activities, Uniswap’s liquidity showed a decrease compared to the previous month. The total value locked (TVL) fell by approximately $100 million in May.
Changing Prospects for UNI
The native token UNI was trading at $5.02 at press time, down 1.16% over the previous 24 hours, according to Santiment. Nevertheless, the trajectory of the DeFi token over the past week, which resulted in a 1.4% gain, was satisfying.
UNI’s weighted sentiment also rose last week, reflecting investors’ belief in the asset’s potential. It also trended on crypto-focused social networks due to increased mentions and interactions. One of the reasons behind the change in market sentiment could be a recent proposal to deploy Uniswap‘s V3 on the layer-1 blockchain, Fantom (FTM).
Various proposals emerged in 2023 to extend Uniswap beyond Ethereum [ETH]. After successful deployment on the BNB Chain, progress was made in April for the integration of Polygon’s (MATIC) zkEVM-V3.
