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- Uniswap v4 has surpassed 1 billion TVL and facilitated a trading volume of $110 billion in 177 days.
- Unichain contributed almost 75% of the volume, contributing all the volume.
Uniswap v4 on July 27 crossed an important threshold with Total Value Locked (TVL) surpassing $1 billion in only 177 days of operation. The rally is because the system has recorded a total trading volume of more than $110 billion, with Unichain and Ethereum contributing to it.
According to Dune Analytics and the DeFiLlama project, the daily volume hovered around $640.9 million, with the 24-hour trading volume recorded at $357.13 million and declining by 6.89%.
Layer 2 networks have significantly boosted this growth, with Layer 2 providing more than 67% of the number of trades. Unichain, the native layer two network of Uniswap, saw an 80% share of the entire trades, with Ethereum trailing at less than 20%. Analysts credited the move to the quick block times and low fees of Unichain, making it the third-most-used layer 2 in the ecosystem.
More than 2500 liquidity pools have incorporated customization features, coded on Hook, allowing customized liquidity behavior. This category of smart contract extensions consisted of 5.11% in volume. Notably, two of the leading projects on v4, Bunni and EulerSwap, had more than $1 billion worth of trades.
However, while Bunni had impressive TVL accrual features, such as auto-compounding and rehypothecation, the pools of EulerSwap seem to be tuned more toward high-frequency trading than value retention.
UNI Price Climbs as Momentum Builds
As of July 28, UNI traded at $11.08, marking a 2.20% gain in 24 hours, according to CoinMarketCap. The trading volume increased to over $405 million, a rise of 25%. The token is currently the 23rd in terms of market cap, with a valuation of $6.78 billion.
Technically, price action is trading sideways on an ongoing upward trend. The daily chart shows a bullish continuation pattern, and UNI is trading above major support areas. The Bollinger Bands indicate that the token is close to the upper band at $11.63, which is indicative of strong upward pressure.
The RSI was 71.62, which indicated slightly overbought levels but still in a healthy rally structure. Bullish momentum was also confirmed on the MACD analysis. The MACD line is positioned at 0.840 above the signal line of 0.788, with positive histogram bars showing further accumulation.
The price structure indicates that UNI has retested the breakout level of $10.76, with higher highs and higher lows being formed consistently since the first week of July.
Protocol Upgrades and Liquidity Tools Drive Usage
Recent additions, such as smart wallet compatibility and cross-chain functionality via Hyperbridge and LayerZero, are part of Uniswap that have facilitated its rapid growth. Since the deployment of v4 on January 31, more than 640 million swaps have been worked. The protocol already covers 10 networks with Ethereum, Arbitrum, Base, and BNB Chain setting the pace.
The growth has superseded v3. Although v3 took 45 days to surpass the $1 billion TVL mark, v4 took only 21 days to do the same. Most of the publicity was due to liquidity optimization protocols that are fueled by customizable Hooks. Further stimulating liquidity chain mobility were Bunni bridge networks to Ethereum and Polkadot.
The amount of swap fees generated on Uniswap v4 totaled $43.1 million. This indicator gives the sustainable income model of the protocol and sustainable long-term capital efficiency.
