Uniswap Weekly Volume

    For the past 10 weeks, what has been the week-over-week change in total volume for Uniswap? What has been the week-over-week change in total volume for each of the top 5 pools by volume (ranking determined by most recent week)?

    Findings & Conclusion

    There has been a general reduction in Uniswap volume since May 2021. However, the trend reversed in mid-July, 2021. Weekly volumes of the most recent top 5 pools do not adhere to the general trend.

    As we can see from above, the top 5 pools do not collectively adhere to the general trend exhibited in previous charts. While USDC-WETH 500 10 volume moves in an upward trend, USDC-WETH 3000 10 moves in a downward trend.

    Does this observed trend hold true for the top 5 Uniswap pools by volume? In the next chart, we are presented with the weekly volumes for the top 5 pools in the last 10 weeks.

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    As you can see in the chart above, the weekly averages provide a clearer visualization of the downward and upward trends. The reasons for these trends are not quite clear but historically, an increase in gas prices leads to lower transaction volumes.

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    Let's take a look at the weekly averages to cross-check whether the trends are consistent with the chart above. The exhibit below presents the weekly average volume in USD for Uniswap over the last 10 weeks.

    Uniswap has been making a consistent weekly volume of $5 billion according to the chart above. After peaking at $11 billion between May 17- May 24, 2021, volumes began to show a downward trend until July 12 where total volume has been the lowest in the last 10 weeks. An upward movement can be seen from here with the period between July 18 and July 26 breaking through the $6 billion ceiling.

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    The total swap volume of Uniswap is in the excess of $88 trilion.

    Week-on-week Analysis

    At this point, we query for the weekly swap volume of Uniswap. We take into consideration, the last 10 weeks. The exhibit below shows the total Uniswap volumes for the past 10 weeks.

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    Total Uniswap Volume

    To begin with the analysis, it is worth knowing the total volume swapped.

    Introduction

    Decentralized exchanges (DEXs) are becoming more and more popular with increased innovations in Decentralized Finance (DeFi). DEXs allow users to swap assets in a trustless, permissionless, and autonomous manner. Since decentralized changes are public and open, their financial data is also open.

    The aim of this research is to investigate the week-over-week volume of Uniswap. This dashboard will answer the following questions as we solve the challenge:

    • What is the total Uniswap volume?
    • What are the week-on-week swap volumes?
    • What inferences can we draw from the data?