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

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Decentralized exchange (DEX) Uniswap has surpassed its host blockchain Ethereum in terms of fees paid in excess of the seven-day rolling average.

This surge appears to be part of the recent high 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 jumped in price.

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According to crypto fee statistics, between June 15 and June 21, traders on Uniswap took an average daily total of $4.87 million in fees, surpassing the average fee of Ethereum users at $4.58 million.

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 version also contributed a notable $336,556.

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

Top Fees Paid: Crypto Fees

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

related: Uniswap Breaks $1T Volume — But It’s Only Used by 3.9M Addresses

Considering Ethereum is the blockchain home for most DeFi, and is known for its expensive fee structure, a DEX such as Uniswap has beaten the blockchain in fees by over a week.

According to data from CoinGecko, at the time of writing UNI is up 17.4% in the past seven days and stands at $5.18. The recent acquisition of NFT marketplace aggregator Genie and the appointment of former New York Stock Exchange chairman Stacey Cunningham as an advisor to Uniswap Labs may have contributed to this.

defy surge

Uniswap is not the only platform to see a rise in its fees and token price of late, as data also shows strong investor demand for multiple DeFi platforms despite the current bear market.

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

Like Uniswap, AAVE saw an increase in fees on June 15, as its total volume increased by 69% to $1.44 million. Its native token AAVE has also grown by 22% since then.

Most notable has been the rise of synthetics. The platform saw a 928% increase in fees paid between June 11 and June 13, as the figure rose to $843,297. By June 17, the total fee had dropped to about $400,000, then rose another 150% on June 19 to nearly $1 million.

The bounce can also be seen looking at Synthetix’s native asset SNX, whose price has risen 105% since June 19 to sit at $3.08. A key reason behind this appears to be Synthetix Improvement Proposition 120 which went live last week which enables users to “atomically exchange assets without fee improvements” thereby increasing the speed of trading.

Continuing the trend, however, fees on lending platform Compound have declined since April, and only generated a seven-day rolling average of $11,753 in the past week, although its native token Comp within that time frame. Has risen 16.7% to sit at $40.50.