The Ethereum decentralized exchange, Uniswap, has experienced a significant increase in volume on layer 2 blockchains compared to two years ago. Currently, Uniswap contributes around 37% of the total trading volume on layer 2 while operating on the Ethereum blockchain.

Research conducted by Tom Wan from 21.co revealed that Uniswap’s L2 volumes have grown by over 650% in the past 24 months, surging from $4 billion in 2022 to over $30 billion this year. This growth trend is expected to continue as more quality protocols launch on layer 2 networks like Arbitrum, Coinbase’s Base, and Optimism.

According to Wan, “L2s have been gaining more economic activities, specifically Base and Arbitrum, which account for 82% of the total L2 volume on Uniswap. I would expect the dominance of L2s’ volume on Uniswap will continue to grow to 50% by the end of this year.”

Data analysis revealed that Uniswap has only contributed 2.9% of the total volume on altcoin L1s. However, Wan believes that with the combination of high-performance EVM-compatible L1s and a multichain expansion strategy, Uniswap could capture more volume on networks like Sei and Monad in the future.

Uniswap, being the first DEX on Ethereum, remains the largest on-chain trading venue on the crypto L1 blockchain. The protocol has accumulated over $2 trillion in cumulative trading volume across 17 chains and has more than $5.5 billion in total value locked by users.

Founded in 2017 by Hayden Adams, Uniswap is currently facing potential enforcement action from the U.S. SEC amid a broader crackdown on the crypto industry. The SEC has issued a Wells Notice to Adams’ business, and the DEX is preparing to defend itself against this regulatory action.

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