Will Uniswap continue to dominate DEX space in 2023? This report suggests…

• A new report confirms Uniswap’s dominance over other order books and AMMs.
• Despite the dominance, activity on Uniswap, and the revenue collected on the network have taken a hit.

In a recent report by Delphi Digital, it was stated that Uniswap along with Curve outperformed major AMM (Automated Market Makers) and order books in terms of market cap and volume.

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Despite the volatility experienced by the crypto market over the last few months, Uniswap managed to maintain its dominance over the market.

The data suggested that the top two AMMs (Uniswap and Curve) had captured more than 60% of the entire market share in terms of volume.

Source: Delphi Digital

The social angle

The recent growth of Uniswap in terms of volume could be attributed to the increasing activity experienced by Uniswap on the social front.

According to data provided by LunarCrush, the number of social mentions and contributors for Uniswap observed a massive increase during the bear market.

This spike in mentions and contributors coupled with the launch of Uniswap’s NFT marketplace could be one of the reasons why the network continued to maintain its prominence in the crypto market.

Uniswap $UNI social mentions & contributors have really taken off in the later parts of this #bearmarket.

Why do you think that is❓

🧐 Insights: https://t.co/bKSydQkXtx pic.twitter.com/hkKEtVvFij

— LunarCrush (@LunarCrush) December 21, 2022

Beyond the hype

Even though Uniswap managed to grow in spite of a volatile market, there is a possibility that things could take a turn for the worse.

One of the indicators of the possibility could be the declining interest in Uniswap’s NFT marketplace. 

There was a lot of excitement surrounding Uniswap during the launch of the marketplace. However as time went on, the number of daily sales and users on the Uniswap NFT platform declined materially.

According to data provided by Dune Analytics, the number of daily unique NFT sales on Uniswap fell from 446 to 32 over the course of three weeks. 

Source: Dune Analytics

Another sign that suggested, Uniswap could have a difficult time maintaining its dominance, was UNI’s declining revenue and TVL. According to data provided by Messari, the revenue collected by Uniswap over the last 30 days decreased by 45.38%.

At press time, the total revenue collected by Uniswap was $2.70 million. Well, in terms of TVL, Uniswap did feel the effects of the bear market. Over the past three months, the overall TVL for Uniswap declined from 3.1 billion to 2.4 billion.

Source: Messari

Furthermore, according to data provided by Santiment, the daily active addresses for UNI declined substantially over the past month. Coupled with that, its velocity also fell. Thus, indicating that the frequency at which UNI was being exchanged amongst addresses had decreased.

How much UNI can you get for $1?

Source: Santiment

That being said, at the time of writing, UNI was trading at $5.32 and its price had increased by 0.52% over the last 24 hours.