The popular decentralized exchange, Uniswap, launched its first version in the fourth quarter of 2018, November precisely. It launched as a proof of concept for AMMs, and as a kind of exchange where everyone can provide liquidity to pools and make market strategies.
5th Month of 2020, the second version of Uniswap (Uniswap v2) was launched with new features, making more development for the Automated Market Makers adoption. It has facilitated close to $140 billion in the volume of trades in not up to a year of introduction. Uniswap V2 was rated to be one of the top spot DEX in the world.
The introduction of Uniswap V3 has been one of the most anticipated cryptocurrency industry events this year. The upgrade was finally on the 5th of May. But the primary cause of its anticipation was missing even when there were sensational buildups before the launch.
The anticipated news was that the decentralized exchange would present concentrated liquidity, several fee layers, and improve capital efficiency to four thousand times compared to v2. But after some days of its introduction, V3 has not done what it assured as some users criticizes the latest version and, one of the frequent criticisms is the higher network fee.
As trading volume on this Ethereum based Dex increases and on-chain transactions surges, the Ethereum blockchain is getting overloaded, leading to relatively high fees.
A day after the introduction, Hayden Adams tweeted that the unveiling day of the third version of the Dex was more efficient than the preceding version in terms of the trading volume. According to Ryan Watkins, this new upgrade has seen double trading volume on day one compared to V2 in its first month. Invariably, the recent version is more efficient than v2.
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