Uniswap: Here is how the leading DEX was impacted by the collapse of FTX
The spike in trading activity on the decentralized exchange over the past week has been attributed to the collapse of FTX and the resulting FUD and general distrust of centralized exchanges ravaging the cryptocurrency market. According to analyst WuBlockchain, trading volume on Uniswap has increased over the past seven days as Uniswap V2 and V3 have burned more than 2,300 Ethereum [ETH]. This is due to a “loss of trust in CEX,” WuBlockchain said. The increased ETH burns over the past week due to market volatility caused by the collapse of the cryptocurrency exchange FTX caused ETH to become deflationary for the first time since the merger. According to ultrasound data money, Ether’s net issuance, or the annualized inflation rate, was 0.029% at press time.
Alex Svanevik, CEO of on-chain analytics platform Nansen, has not only contributed to the amount of ETH burned over the past week but also confirmed in a tweet that the ETH trading volume on Uniswap is that everyone centralized exchange between November 13 and 14.
There is a catch
In addition to ETH trading on these Uniswap versions, data from Dune Analytics showed an increase in MEV robotics activity on Uniswap V3 over the past seven days. At the time of this writing, the average total daily volume for MEV bot activity was $1,256,263,553. However, while Uniswap saw increased activity due to the FTX crash, DefiLlama data since November 7 showed a reduction in the protocol’s TVL. At press time, the TVL on Uniswap is $3.81 billion.
Down 13.4% since FTX crashed. Of its three releases, Uniswap V3 suffered the most significant drop in TVL over the period. According to DefiLlama data, its TVL is down 12% since FTX collapsed. At press time, the TVL on Uniswap V3 was $2.84 billion.
unified in decline
UNI, Uniswap’s native token, has not escaped the blow that significant cryptocurrency assets have suffered due to the FTX collapse. According to CoinMarketCap data, its price is down 17%. According to the on-chain analytics platform. Santiment, most UNI holders are making losses at press time. His MVRV index was negative, 55.67%.
Most recently, negative sentiment followed the token as it registered emotion weighted at -0.53.