New Uniswap Deployment on StarkNet: Game-Changer for the DEX Giant?

  • Uniswap is deployed on the StarkNet mainnet to reduce gas costs and expand supply.
  • Uniswap dominates in terms of active users, but its revenue is down.

In a recent proposal, Uniswap stated that it would deploy to the StarkNet mainnet. StarkNet is an unauthorized ZK pool that inherits security from the Ethereum mainnet. This move by Uniswap can bring a host of benefits to the platform and its users.

Read Uniswap’s 2023-2024 quote

new distributions

One of the main benefits of deploying Uniswap on StarkNet is the lower gas costs for Uniswap transactions. By deploying Uniswap on a zk rollup with a thriving and growing ecosystem, Uniswap can reduce the cost of using the platform.

This can make it more accessible and attractive to users, especially those who like to make small transactions.

Another benefit of deploying Uniswap on StarkNet will be the growing StarkNet ecosystem. StarkNet has a growing ecosystem of developers and projects, and Uniswap can leverage this ecosystem to expand its offerings and services.

Despite these potential benefits, Uniswap’s revenue has declined in recent months. According to data from Dune Analytics, Uniswap volume increased from $155.8 million to $50.65 million, and fees collected by Uniswap were also affected.

This drop in volume and fees had a direct impact on Uniswap’s revenue, which according to Messari fell by 50.66% in the last month.

Source: Dune Analytics

Despite this decline in revenue, Uniswap still managed to dominate the DEX market in terms of the 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 Analytics

HODLers are waiting

Even though Uniswap had the most active users, the token holders continued to lose money. According to Santiment data, Uniswap’s MVRV ratio has been extremely negative over the past month, indicating that most stockholders would not make any money if they sold their positions.

Is your wallet green? Check out the Uniswap profit calculator

Source: feeling

Despite these negative metrics, Uniswap’s MVRV ratio has continued to increase along with the token’s trading volume. This may indicate that if things continue to move in a positive direction, stockholders will benefit in the long run.

In addition, distribution on the mainnet of StarkNet can bring in new users and increase the size of the platform. Thus improving its revenue and potentially increasing the value of the UNI token.

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