Uniswap (UNI) Daily Fees Hit Record Highs, Dwarfs Bitcoin (BTC)

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DeFi
Uniswap (UNI) Daily Fees Hit Record Highs, Dwarfs Bitcoin (BTC)

Uniswap (UNI) has surpassed Bitcoin in terms of daily fee generation, a strong indication that the decentralized finance (DeFi) protocol remains a top choice for yield farmers despite rising Ethereum gas fees.

Uniswap (UNI) Liquidity Provider Fees Surges 

At a time when decentralized finance (DeFi) yield farming protocols on Binance Smart Chain (BSC) are beginning to gain serious attention due to the very low fees on the network, a tweet by crypto blogger Evan Van Ness has revealed that Uniswap remains a top choice for some yield farmers despite skyrocketing Ethereum gas fees.

In a May 11, 2021 tweet, Evan Van Ness revealed that Uniswap has fully overtaken Bitcoin in terms of fees. He also went ahead to predict a future where the Uniswap market cap could surpass that of the world’s flagship cryptocurrency.

https://twitter.com/evan_van_ness/status/1392236768380993538

In the same vein, Uniswap creator, Hayden Adams also tweeted about the milestone on the microblogging platform. In his words:

“@Uniswap v2 LP fees finally passed Bitcoin network fees on the 7-day average. Would be even higher if cryptofees.info tracked v3.”

According to data available on CryptoFees at the time of writing, Ethereum still occupies the frontline in terms of fees, generating a massive $117.2 million in the past 24-hours, with Uniswap following far behind with $7.1 million. 

Mixed Reactions

Interestingly, the tweet did not go down well with some DeFi enthusiasts, as they blasted Uniswap for its seemingly high transaction fees as compared to DeFi protocols on other blockchains.

“It is basically unusable because of high fees, yet you are proud of it?” tweeted @UeiLink

“Great, now implement some layer 2 scaling so that Uniswap is actually usable by non-rich users. Polygon is ready and waiting. Aave, Curve, Sushi, Pool together all on it. Optimism is months away. Why wait?” tweeted @TheCryptoLark.

As the heat kept building, Adams explained to the Uniswap critics that the generated revenue was actually swapping fees paid to liquidity providers on the platform and not Ethereum gas fees paid to miners.

While the newly launched Uniswap v3 has been quite successful in terms of trading volume, some users have taken to Twitter to reveal that the platform consumes more gas fees than the previous iterations.

Against that backdrop, Adams has hinted that Uniswap needs to integrate Ethereum Layer-2 scaling solutions as soon as possible.

Ogwu Osaemezu Emmanuel

Ogwu Osaemezu Emmanuel is a graduate of Mass Communication and Media Studies. He joined the blockchain movement in 2016 when a friend of his introduced him to an investment platform accepting bitcoin. He has never looked back since then. Emmanuel believes the world needs real change and freedom from poverty. He sees crypto and the underlying distributed ledger technology as the catalyst to a better future for all.