Uniswap is being deployed on StarkNet’s mainnet to lower gas costs and expand offerings. Uniswap dominates in terms of active users, but revenues fell.
In a recent proposal, Uniswap stated that it would be deployed on StarkNet’s mainnet. StarkNet is an unauthorized ZK rollup that takes over security from the Ethereum mainnet. This move by Uniswap has the potential to bring numerous benefits to the platform and its users.
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New implementations
One of the main benefits of deploying Uniswap on StarkNet is lower gas costs on Uniswap trades. By deploying Uniswap on a zk rollup with a thriving and growing ecosystem, Uniswap could potentially reduce the costs associated with using the platform.
This could make it more accessible and attractive to users, especially those looking to make small transactions.
Another benefit of deploying Uniswap on StarkNet would be StarkNet’s growing ecosystem. StarkNet has a growing ecosystem of developers and projects, and Uniswap could potentially tap into this ecosystem to expand its offerings and services.
Despite these potential benefits, Uniswap’s earnings have been declining in recent months. According to data from Dune Analytics, Uniswap’s volume went from $155.8 million to $50.65 million, and fees collected by Uniswap were also impacted.
This drop in volume and fees has had a direct impact on Uniswap’s revenue, which Messari says has fallen 50.66% over the past month.
Source: Dune analysis
Despite this drop in revenue, Uniswap still managed to dominate the DEX market in terms of number of active users. Based on Dune Analytics data, the number of active users on Uniswap contributed to 62.0% of the total DEX users in the space.
Source: Dune analysis
HODLers keep waiting
Although Uniswap had the most active users, token holders continued to lose money. According to data from Santiment, Uniswap’s MVRV ratio has been extremely negative over the past month, suggesting that most holders wouldn’t make any money selling their positions.
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Source: Sentiment
Despite these negative metrics, Uniswap’s MVRV ratio continued to rise along with the token’s trading volume. This could suggest that if things continue to move in a positive direction, holders would benefit in the long run.
In addition, the implementation on StarkNet’s mainnet could potentially bring new users and more volume to the platform. Thus, it improves its earnings and potentially increases the value of the UNI token.
This post Uniswap’s new implementation on StarkNet: Is it a game-changer for the DEX giant?
was published first on https://ambcrypto.com/uniswaps-new-deployment-on-starknet-is-it-a-game-changer-for-the-dex-giant/
