Growth of Liqudity Providers

Uniswap quickly became the leading Decentralized Exchange (DEX) after its launch, partly because of the ease of use. The effectiveness of Uniswap hinges on two groups of users: the traders executing swaps and the users that provide liquidity to facilitate the trading. Without the liquidity providers, traders would experience steep price impacts that negatively affect them. Without the traders, liquidity providers will experience little to no return on the provided capital which would make it a poor investment strategy.

Observations

Uniswap has witnessed approximately 722.6K LP transactions, involving around 130K Liquidity Providers who collectively contributed about 46.5 billion USD to the platform.

On average, each Uniswap user engages in more than 5 transactions, resulting in a daily total of approximately 800 transactions.

When we group users by the age of their wallets, it is evident that the majority of users have between 1 and 2 years of experience, indicating a level of expertise.

Furthermore, when categorizing users by their active time on Uniswap, the data reveals that most users are active for only 1 to 5 days.

Additionally, when we group users by their account balances, it becomes apparent that the majority fall into the category of "Sharks," which represents users with significant holdings but slightly smaller than the "Whale" category.

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Growth of Liqudity Providers