Uniswap Ethereum L2 addresses reach new high of 8.5m

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As a seasoned researcher who has witnessed the crypto landscape evolve over the past few years, I must admit that the surge in Ethereum layer-2 wallet addresses using Uniswap’s decentralized exchange is nothing short of breathtaking. The nearly doubling of these addresses since June, setting a new all-time high, is a testament to the growing adoption and trust in L2 solutions.

In simpler terms, the number of Ethereum layer-2 wallet addresses used with Uniswap’s decentralized exchange almost doubled in the previous month as opposed to the figures from June.

As a researcher delving into the fascinating world of blockchain, I recently uncovered some intriguing findings regarding the trading activity on Uniswap, the dominant Decentralized Exchange (DEX) across all blockchains. According to Dune Analytics, an astounding 8.5 million Ethereum (ETH) addresses executed trades on Uniswap through Layer-2 solutions like Arbitrum, Base, Optimism, Polygon, and ZKSync, reaching a new all-time high.

Layer-2 solutions built on Ethereum’s main network function alongside it to enhance the second-largest decentralized cryptocurrency network. While Vitalik Buterin and his team have designed a robust blockchain for secure, permissionless transactions, congestion on the chain can occur, leading to higher fees when transferring assets.

L2s (Layer 2 solutions) were created to alleviate congestion on Ethereum’s main network and provide a more affordable route for trading within the largest decentralized financial system.

Over 8.5M addresses on L2s last month

That’s almost double the previous all-time high 🤯

— Uniswap Labs 🦄 (@Uniswap) August 9, 2024

Ethereum L2 addresses rise, but TVL is down

As a researcher, I’ve observed that platforms such as Base and Polygon previously offered more affordable transaction costs compared to Ethereum, which are commonly referred to as gas fees. Yet, the March Denyo update has further enhanced these cost-effective solutions.

Based on L2Fees’ data, transferring Ether through layer-2 networks costs less than a dollar, while exchanging digital assets costs roughly under three dollars. This cost-effectiveness may be a significant factor contributing to the rise in L2 addresses since February, shortly before the launch of Dencun by developers.

Over the course of these events, the combined amount of funds users have deposited into decentralized finance platforms, often referred to as Total Value Locked (TVL), has seen a decline on various blockchain networks, such as Ethereum and its layer 2 solutions.

Based on DefiLlama’s recent data, I’ve observed a drop of up to 25% across various platforms within the last 30 days. This decline mirrors broader market corrections and a general downturn in the altcoin sector.

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2024-08-09 18:32