The number of users of Uniswap, one of the most popular platforms of recent weeks, continues to increase. The increase in the number of users causes the Ethereum network to become congested and Uniswap users to pay more transaction fees. Current data show that Uniswap users have paid a total transaction fee of $ 7 million in the past 30 days.
Uniswap has become one of the largest decentralized exchanges in the industry, following the developments in the DeFi world. Uniswap surpasses most of its competitors with its daily volume of 250 million dollars; It has a 60% share in the DEX market.
Cryptocurrency users can swap between different DeFi tokens using Uniswap’s liquidity pool. Uniswap using Automated Market Maker technology for these processes; It was visited by 90,000 people in June. However, with the popularization of DeFi tokens, this number reached 1.5 million in July. Uniswap has continued to grow in the intervening weeks.
Ethereum Network Clogged
Investors who make swaps between different assets by taking advantage of Uniswap’s services can gain significant profits thanks to these transactions. But those who do this need to sacrifice a substantial transaction fee.
With the widespread use of Yield farming and swap transactions, the strain on the Ethereum network has also started to get heavier. This weight returns to users as transaction fees. Some users pay higher transaction fees than usual to get their transactions confirmed before others, which gradually increases the average transaction fee on the network. This is the reason why the Ethereum network has set a new record for transaction fees, according to Arcane Research’s research:
“Ethereum received more than $ 8.1 million in transaction fees in one day last week. There is a 4-fold increase compared to the beginning of August. This number is 65% higher than the record set in January 2018. It should be noted that the ETH price was $ 1,300 at that time. ”
They paid $ 7 million a month
Uniswap users pay a significant amount of transaction fees for their transactions on the exchange. A Reddit user said that he wanted to make a $ 100 swap transaction last week, but was asked for a $ 21 transaction fee for this transaction. Other examples of this can be found on platforms such as Twitter.
The high transaction fees make Uniswap ahead of its competitors in terms of the amount of gas collected. According to data from ETH Gas Station, Uniswap users have paid almost $ 7 million in transaction fees in the past 30 days. Uniswap thus became the ETH platform that collects the most transaction fees. Because even the amount of gas paid for Tether (USDT) is around 6.4 million dollars.