Uniswap’s Layer-Two Volume Sees an All-Time High of $115 Million

Jafrin  |  Oct 19, 2021

Decentralized exchange, Uniswap's layer two-volume has seen a strong surge as Ethereum transaction fees rise once again. This has resulted in users opting for Arbitrum over Optimism for scaling amid Uniswap’s layer-two volume surging to record highs.

Uniswap’s Layer-Two Volume Sees an All-Time High

Data from analytics provider Nomics shows that Uniswap v3 drove $80 million in volume on Arbitrum and roughly $14 million on Optimism over the past 24 hours.  Meanwhile, Uniswap v3’s combined layer-two volumes are still smaller compared to its mainnet deployment which currently represents $1.3 billion in daily activity.

Arbitrum appears to have emerged as the DeFi community’s second-layer rollups solution of choice. Since its mainnet launch in September, layer-two data aggregator L2beat indicated that Arbitrum represents 60% of the total value locked (TVL) across layer-two networks combined. The TVL for Arbitrum currently sits at $2.29 billion after increasing by 14% over the past week.

In the meantime, derivatives exchange dYdX ranks second behind Arbitrum with $838 million or 22% of value locked in the sector. Optimism has attracted just $269 million in locked capital, ranking as the third-largest layer-two with a 7% share of second-layer TVL. The combined TVL of layer-two networks shows a record-high $3.8 billion on Oct. 17.

Growth in Derivatives Trading

There has been increased growth in derivatives and options trading protocols as regulators increasingly crack down on centralized exchanges that offer derivatives services and have loose Know Your Customer and Anti-Money Laundering requirements. Two of the biggest gainers in terms of protocol revenue over the past month were dYdX and Hegic, a pair of protocols that offer decentralized derivatives and on-chain options trading to investors.

Global regulators have increased their scrutiny on leveraged and derivatives trading platforms in recent months, while at the same time, centralized exchanges like Coinbase have applied to offer futures trading services.

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