Uniswap on Polygon Growth Metrics

    Analyse the growth of Uniswap on Polygon (for example in terms of TVL, capital efficiency, trading volume, fee generated, fee tier preference by LP, etc.)

    Introduction

    Uniswap, upon its release in 2017, has been a leading decentralized exchange (DEX) in the Ethereum ecosystem. As the adoption of Ethereum L1 grows, we are seeing transaction fees reach levels that are not that inclusive anymore; the usage of popular Ethereum applications has become reserved for larger token holders and high-value transactions.

    In this regard, I believe, Uniswap has been gradually expanding to layer 2s. The expansion began with Arbitrum, then Optimism, and now, Polygon.

    On November 20, a proposal was submitted to the Uniswap community to deploy Uniswap to Polygon. The proposal successfully went through all three phases of the Uniswap governance process, and 72M+ UNI holders supported it!

    How has the growth of Uniswap been since it launched on Polygon? This is the question we seek to answer with this analytical dashboard.

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    User Metrics

    Users are the backbone of every DeFi protocol, and how frequent they onboard and stay active is a strong indicator of growth. In this section, we will look at the number of unique users who have interacted with Uniswap users, and the number that has remained active.

    Since December 22, 2021, when Uniswap was launched on Polygon, there have been 40k+ unique users who have interacted with the protocol.

    Weekly active users are on the rise and there are no signs of slowing down. Looking at the chart, we can say that there are at least 1k new weekly active users. This is a very strong indicator of growth.

    Swap Metrics

    How have the users been using the platform to make trades? In this section, we look at the daily swap count and how it has changed since its launch. We will also analyze the charts of daily trading fees and the cumulative trading volume since inception.

    Transaction count, also known as swap count started in hundreds on December 22 and quickly ballooned to 1.5k. As you can see, there has been a gradual uptrend spanning the whole of January. The trend is likely to continue through February.

    The protocol is making decent fees in trade fees (excluding slippage) but figures are yet to cross 1k USD on a single day.

    For the cumulative trading volume, Uniswap on Polygon reached a total of 100M USD in about a month. It took less time to double the number and even a shorter time to reach 500M USD.

    Final Words

    We have analyzed the number of unique users using Uniswap on Polygon and how active they are week-in, week-out. We have also looked at swap count, trade volume, and trade fees. What can we learn from all these metrics? One thing is for sure, that Polygon users have been waiting for Uniswap to launch. This is why the protocol reached 500M USD in trade volume in less than 2 months.

    Looking at the trends, you do not need an expert to tell that Uniswap will skyrocket on Polygon in the coming months.