Uniswap V2 & V3

The main objective of this dashboard is to assess and examine the similarities and differences between Uniswap V2 and V3. Despite the passage of approximately two years since the launch of Uniswap V3, V2 continues to be extensively utilized and remains popular in the market. The dashboard is composed of four parts.

Comparitive Analysis between V2 and V3

1. Total trading volume & Total Swaps

In this part, we compare the trading volume and number of trades of uniswap V2 and V3 along with the median trade amount of the both version of Dexes.

2. Total Fee Collected

While V2 only supports the Ethereum chain, V3 supports various chains such as Optimism, Arbitrum, Polygon, and BNB.

For fair comparison, we analyze the total fees collected by the two versions of the platform on Ethereum blockchain.

3. Top 10 Pairs

In this part, we check Top 10 Pairs in Uniswap are mainly traded in V2 and V3, by analyzing the transaction count and amount in USD.

4. Memecoin trading pattern

Since April 2023, the trades of memecoin has exploded. It has gained traction across both Uniswap versions, with notable increase in trading volume for ERC-20 memecoins.

In this part, we analyze the pattern of memecoin transactions in V2 and V3.

Approach

Source: The data utilized for this dashboard is sourced from ethereum.core.ez_dex_swaps and ethereum.core.fact_transactions tables of flipsides database.

What we will compare?

Swap volume and Tx count, Total Fee collected, Top 10 Pairs traded and Memecoin trading pattern by analyzing on-chain data of the protocol

Date: Uniswap v3 was launched on May 5, 2021, so the most analysis will be performed starting from this date

INTRODUCTION👨🏻‍💻

Uniswap protocol is suite of persistent, non-upgradable smart contracts that together create an automated market maker, a protocol that facilitates peer-to-peer market making and swapping of ERC-20 tokens on the Ethereum blockchain.

Now we will compare 2 version of protocol: Uniswap v2 and Uniswap v3

Observations & Findings 💸

Volume

Since May 2021, almost 70% of Uniswap's total traded volume migrated to v3 especially due to low fees. Pools such as the 0.01% and 0.05% pools and due to concentrated liquidity.

Trades & Trade sizes

Most of the volume is on Uniswap v3, though most trades are executed on Uniswap v2.

Median trade size

Median trade sizes on Uniswap v3 are way larger than the trades sizes on v2 due to v3 better pricing (lower slippage and lower fees).

Total fee collected

It can be observed from the chart that Uniswap V2 has burned more gas hence collected more fees than Uniswap V3. This indicates Uniswap V3 is be cheaper to use, with new features like gas price optimizations.

Top 10 Pairs

Interestingly, Most popular stable pair on Uniswap V2 was USDT but one V3 it is USDC. It can indicate newer users deviating towards USDC Stablepairs.

Memecoin Trading Pattern

It can be observed the Active Users saw a jump after the start of Memecoin season.
Number of transactions also saw a huge jump from 242k before memecoin season to 477k after that.
Meme Swaps saw most volume on May 05, 2023, although after after that it settled down.
Shiba coin is leading the race, being the most popular memecoin. Other memecoins such as Floki, Pepe, CHAD, Milady has been catching up after the memecoin season of 2023, Pepe coin becoming the most succesful among them indicated by the trade volume.

This trend reflects the growing interest in memecoins within the broader cryptocurrency market.

Ultimately, the comparitive analysis reveals differences and potential benefits associated with each Uniswap version. The choice between Uniswap V2 and V3 ultimately depends on individual preferences, trading stragtegies, and specific requirements within the decetralized ecosystem.