Uniswap Trading Volume Dipped to Five-Month Low in February


Uniswap took a further backseat in volume during the month of February after the decentralized exchange saw a 23% decrease in liquidity from January.

February proved to be a tough month for decentralized exchanges, primarily Uniswap. The DEX recorded approximately $54 billion in trading volume during the second month of 2022, according to BeInCrypto Research.

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Inasmuch as this figure seems surprising due to Uniswap being the largest DEX by daily trading volume, the total volume for the top-five DEXs for January was down. Volume in February fell even further by $28 billion from January, a staggering 29% decrease.

Uniswap volume still decreasing from 2021

The decrease in volume over the last month could have a massive effect on Uniswap since it competes with several other major DEXs in the exchange space. Although Uniswap’s total volumes are up 70% since February 2021, which saw $32 billion in volume recorded, the decentralized exchange has still not surpassed its November and December 2021 monthly volumes.

Uniswap recorded an all-time high monthly volume of $85 billion in November 2021 and almost reached the same feat by recording $84 billion to close out December 2021. Volumes recorded at the end of January and February 2022 were 56% and 55% lower than volumes recorded in November and December 2021 respectively.

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 Source: Dune Analytics

The last time Uniswap recorded a monthly volume below $60 billion was in September 2021 when it fell to approximately $53.4 billion.

The figure from February 2022 was just 2% higher than the value recorded at the end of the third quarter of 2021.

What caused the volume decline?

Declining transaction counts are certainly a prime factor for factor the fall in volume.

The transaction count for Uniswap at its peak volume in November 2021 was 63,147.

This declined by 3% to 61,013 by the end of December 2021.

The total transaction count for Uniswap on the last of November further declined 39% to 38,489.

Source: Messari

The fall was steep in February 2022 as a staggering 49% was shed off the total transaction count for Uniswap which brought the total to 31,765.

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