DeFi Summer 3.0? Uniswap outperforms Ethereum in fees, DeFi outperforms

Decentralized exchange (DEX) Uniswap has surpassed its host blockchain Ethereum in terms of fees paid on a rolling 7-day average.

The surge appears to be part of the recent high demand for DeFi in the current bear market. Decentralized finance (DeFi) platforms such as AAVE and Synthetix have seen a surge in fees paid in the past seven days, while prices of their native tokens and others such as Compound (COMP) have also skyrocketed.

According to Crypto Fees, the average daily fee for traders on Uniswap totaled $4.87 million between June 15 and June 21, surpassing the average fee for Ethereum users at $4.58 million.

Uniswap’s state-of-the-art V3 protocol (based on the Ethereum mainnet) accounted for the lion’s share of total fees at $4.4 million, while the V2 variant also contributed a notable $336,556.

During this period, Ethereum’s total fees surpassed Uniswap on only two of the seven days. As far as the peak day of generating fees, Uniswap broke out on June 15 at $8.36 million, beating Ethereum at $7.99 million on the same day.

Highest Fees Paid: Crypto Fees

Uniswap supports peer-to-peer (P2P) exchanges of Ethereum-based tokens without the need for a central authority to facilitate transactions. This is achieved through automated smart contracts. According to Uniswap’s fee structure, traders pay fees to liquidity providers, who receive 100% of the fees on the DEX.

related: Uniswap’s trading volume tops $1T — but it’s only used by 3.9 million addresses

Considering that Ethereum is home to the majority of DeFi’s blockchain and is known for its expensive fee structure, it’s notable that DEXs like Uniswap outperformed the blockchain in fees within a week.

According to data from CoinGecko, UNI has gained 17.4% over the past seven days, reaching $5.18 at the time of writing.recently acquired NFT Market Aggregator Genie and appointed Stacey Cunningham, former president of the New York Stock Exchange, as Advisor to Uniswap Labs may have contributed to this.

DeFi surges

Uniswap isn’t the only platform to see its fees and token prices skyrocket recently, as data shows strong investor demand for several DeFi platforms despite the current bear market.

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

Like Uniswap, AAVE’s fees surged on June 15, with its total jumping 69% to $1.44 million. Since then, its native token, AAVE, has also gained 22%.

The rise of Sythentix is ​​the most dramatic. The platform saw a 928% increase in fees paid between June 11 and June 13 to $843,297. By June 17, the total fee dropped to about $400,000, before soaring another 150% to about $1 million on June 19.

The boom can also be seen by looking at Synthetix’s native asset, SNX, whose price has risen 105% since June 19, reaching $3.08 at the time of writing. A key reason behind this appears to be the Synthetix Improvement Proposal 120 live Last week, this enabled users to “automatically exchange assets without recycling fees,” increasing transaction speeds.

Contrary to this trend, however, lending platform Compound’s fees have been falling since April, generating just a 7-day rolling average of $11,753 over the past week, even as its native token COMP rose 16.7% to $40.50 over the period .