- Activity on Uniswap skyrocketed due to increasing interest in memecoins such as DOGE and PEPE.
- The fees generated on Uniswap also started to increase.
Uniswap [UNI] has dominated the DEX space in terms of market share and volume for quite some time now. However, there is an unexpected surge in activity on the DEX, due to the popularity of memecoins.
Read Uniswaps [UNI] Price Forecast 2023-24
One of the memecoins that has attracted high volume on the Uniswap protocol was Pepe [PEPE]. This was due to the fact that PEPE received a lot of attention from the crypto community in a short period of time.
According to LunarCrush data, the number of social contacts for PEPE is up 176.8% in the past week. In addition, PEPE’s listings grew by 72.8% over the same period.
This attraction in PEPE resulted in an increase in market capitalization. This spike in attention also spilled over to other memecoins such as DOGE. However, despite a spike in attention for DOGE, it was unable to experience the same growth as PEPE.
In terms of number of holders, DOGE was still far ahead of PEPE, with 4.79 million addresses with DOGE. PEPE, on the other hand, has 93,637 addresses with the memecoin.
Due to the low number of PEPE addresses, the holders of this memecoin may be vulnerable to rapid price movements caused by whale behavior.
Source: Sentiment
As the memecoin industry becomes increasingly competitive, DEXs like Uniswap are reaping the benefits of user behavior. The number of active users on the Uniswap platform has reached a level not seen since May 2021, according to data from Dune Analytics.
Data also showed that Uniswap-related contracts led to the burning of more than 15,000 ETH in the past seven days.
For context, when a smart contract is executed on the Ethereum blockchain, a certain amount of gas fee is paid in ETH, which is then burned, effectively reducing the total supply of ETH in circulation.
Realistic or not, here is UNI’s market cap in BTC terms
Therefore, a higher level of smart contract activity on Uniswap has led to a higher level of ETH burning. This is not only a healthy indicator for Uniswap but also for ETH.
Source: Dune analysis
Due to the high activity on the Uniswap network, the amount of fees generated by the protocol has also increased. According to data from the token terminal, the cumulative fee Uniswap acquired has increased by 8.5% over the past week.
Source: token terminal