Uniswap (UNI) Crosses Historic $250B L2 Volume, UNI To Rally?

The transaction volume on Decentralized Exchange (DEX) and Automated Market Maker (AMM) Uniswap Layer-2 (L2) has hit a historic level pegged at $250 billion.

Uniswap L2 Transaction Volume Hits ATH

This transaction volume figure shows a significant growth from the levels seen around this time in 2023 when the Uniswap L2 transaction volume was just a little over $70 billion. 

The data from crypto analytics platform Dune confirmed that Uniswap L2’s all-time protocol volume on Arbitrum, Polygon, Optimism, and Base has surpassed its previous All-Time-High (ATH).

The protocol is optimistic that its next stop would be to hit $1 trillion in trading volume. 

By December last year, Uniswap L2’s volume had not even climbed to $200 billion, according to the chart. However, February came and volume went as high as $208.11 billion, indicating a 280% increase year-over-year (YoY). The current transaction volume shows that Uniswap L2 has added another $40+ billion in the space of one month, a massive milestone for the protocol.

Generally, L2s are exhibiting positive sentiments in terms of their user activities. Coingape reported that Coinbase L2 scaling solution Base outperformed Arbitrum and Ethereum in terms of the volume of daily transactions last week.

Uniswap (UNI) Price Impact

The news of the increased Uniswap L2 transaction volume seems not to have had a positive impact on the price of the protocol’s native token. 

UNI is currently displaying a negative sentiment as it is down by 5.32% and trading at $7.08. This price also indicates a major plunge considering that UNI rose to as high as $13.08 in February and later settled at $12.22 when its transaction volume rose to $208 million. 

Markedly, Uniswap whale activities are also contributing to the bear price outlook of UNI. A few days back, these whales dumped $20 million worth of UNI, triggering a 15% price dip for the token. Dumping UNI became an option for these big-fish investors after Uniswap was served a Wells Notice from the U.S. SEC on April 10.

According to Lookonchain reports, three large holders offloaded a total of 2.03 million UNI tokens which was equivalent to $20 million at the time. The news of the surge in transaction volume may force an upward movement in UNI price soon.