Uniswap Usage on Ethereum Layer-2 Doubles in a Month

The number of Ethereum layer-2 wallet addresses using Uniswap’s decentralized exchange nearly doubled last month compared to June.

Dune analytics data showed 8.5 million Ethereum addresses trading on Uniswap via layer-2 solutions like Arbitrum, Base, Optimism, Polygon, and ZKSync, setting a new record. Uniswap, the leading decentralized exchange on any blockchain, generated nearly $100 million in fees in June.

Over 8.5M addresses on L2s last month

That’s almost double the previous all-time high 🤯 pic.twitter.com/n7bFWFuoMv

— Uniswap Labs 🦄 (@Uniswap) August 9, 2024

Layer-2 networks enhance Ethereum’s main blockchain by reducing congestion and transaction costs. Platforms like Base and Polygon already offered cheaper gas fees than Ethereum, but the Dencun upgrade in March further lowered costs.

According to L2Fees, sending Ethereum on layer-2 networks costs less than $1, and swapping digital assets costs under $3. This increased affordability likely contributed to the rise in layer-2 addresses since February.

Despite the rise in user activity, the total value locked (TVL) in decentralized finance chains, including Ethereum and its layer-2 networks, has declined. DefiLlama data indicates a 25% drop in TVL over the past 30 days, reflecting market corrections and a downturn in the altcoin sector.