DeFi summer 3.0? Uniswap overtakes Ethereum on fees, DeFi outperforms

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Decentralized exchange (DEX) Uniswap has outperformed its host Ethereum blockchain in terms of fees paid on a seven-day rolling average.

The surge appears to be part of a recent wave of strong demand for DeFi amid the current bear market. Decentralized finance (DeFi) platforms such as AAVE and Synthetix have seen an increase in fees paid over the past seven days, while their native tokens, and others such as Compound (COMP) have also exploded in price. .

According to data from Crypto Fees, traders on Uniswap accounted for an average daily total of $4.87 million in fees between June 15 and June 21, surpassing the average Ethereum user fee of $4.58 million. dollars.

Uniswap’s most advanced V3 protocol (based on the Ethereum mainnet) accounted for the lion’s share of total fees with $4.4 million, while the V2 variant also contributed $336,556.

During this period, Ethereum’s total fees exceeded those of Uniswap on only two out of seven days. In terms of peak day fees generated, Uniswap reached $8.36 million on June 15, beating Ethereum on the same day at $7.99 million.

Top Fees Paid: Crypto Fees

Uniswap enables peer-to-peer (P2P) exchanges of Ethereum-based tokens without having a central authority to facilitate the exchanges. This is achieved by automated smart contracts. Under Uniswap’s fee structure, fees are paid by merchants to liquidity providers who receive 100% of the fees on the DEX.

Related: Uniswap exceeds $1,000,000 in volume, but was only used by 3.9 million addresses

Considering Ethereum is the blockchain that houses the majority of DeFi and is known for its expensive fee structure, a DEX such as Uniswap beating the blockchain in fees over a week is remarkable.

According to data from CoinGecko, UNI has pumped 17.4% over the past seven days to sit at $5.18 at the time of writing. The recent acquisitions of marketplace aggregator NFT Genie and the appointment of former New York Stock Exchange President Stacey Cunningham as an adviser to Uniswap Labs may have contributed to this.

DeFi surge

Uniswap is not the only platform to see an increase in its fees and token price lately, as the data also shows strong investor demand for several DeFi platforms despite the current bear market.

Lending protocol AAVE and synthetic derivatives trading platform Synthetix in particular are ranked third and fifth in terms of average fees paid over the past seven days with $981,883 and $600,214 each.

Much like Uniswap, AAVE saw a fee increase on June 15, with its total rising 69% to $1.44 million. Its native token AAVE has also pumped 22% since then.

The rise of Sythentix has been the most notable. The platform saw a huge 928% increase in fees paid between June 11 and 13, rising to $843,297. The total fee then fell to around $400,000 on June 17, before climbing another 150% to around $1 million on June 19.

The boom can also be seen by observing Synthetix’s native SNX asset, the price of which has gained 105% since June 19 to stand at $3.08 at the time of writing. One of the main reasons behind this appears to be the Synthetix 120 enhancement proposal which went live last week which allows users to “atomically trade assets without fee recoupment”, thus increasing the speed of negotiation.

However, contrary to this trend, fees on lending platform Compound have been declining since April and generated a seven-day moving average of $11,753 over the past week, despite its native token COMP rising by 16.7% over this period to settle at $40.50.