Uniswap V2 vs. V3 Volume
A comparison of Uniswap v2 vs. v3 trading volumes.
Introduction
On May 5, 2021, Uniswap Labs announced and released the third iteration of the Uniswap protocol to the general public. Uniswap v3, as it is popularly known, promised a number of improvements including reduced gas fees and concentrated liquidity.
This dashboard seeks to investigate the differences in trading volumes between Uniswap v2 and v3 over the past 6 months.
First, let's take a look at counters summarizing total trading volume over the past 6 months.
Clearly, uniswap-v2 is dominant in trading volume with 405.7B USD as compared to 294.5B USD for v3 over the period of assessment. However, v3 was only released in May, so let's dive into weekly charts to see how trade volumes compare since May 5.
We can see from the chart the there have not been significant differences in trade volumes of v2 and v3 since May 5, 2021. Except for some weeks, the trading volume of v3 is actually higher than v2. However, this view is limited. To determine whether trade volumes are actually leveling off, let's take a look at the weekly averages.
Findings & Conclusion
Looking at the data and charts presented, it is reasonable to assume that although v3 is relatively new, it is leveling up in trade volume and is likely to overtake v2 in total trades in the next six months.
The pattern of the graphs shows an inverse relation in trading volumes of the two platforms. For example, for the week of May 31, to June 7, 2021, where v2 increased in average volume, that of v3 was on a downhill trend. Many other similar patterns show that trading volume differences in the platforms seem more dynamic than stabilized.
We can see that v3 trading volume beats v2 in weekly averages. This has been the case since v3 launched in May.