Can Uniswap lure in more users with its rising development activity
- Uniswap’s development activity grew massively over the last few days.
- Uniswap planned to cut down on gas prices, which could attract more users.
Uniswap [UNI] has been one of the most dominant DEXes in the crypto sector despite massive volatility in the space. A major reason for this has been the high number of upgrades being made on the Uniswap protocol.
Devs get active
A high development activity on the network has played a huge role in this. In the last few days, Uniswap ranked number two in the DeFi sector in terms of development activity.
⚡️Top #DeFi Projects by Developer Activity
Dev.Activity – the development activity of a project done in its public Github repositories. Development Activity metrics are measured in a number of Github events. Data source: @Santimentfeed.#Osmosis – 167#Uniswap – 118#Radix -… pic.twitter.com/oj1HDVCbwb
— 🇺🇦 CryptoDep #StandWithUkraine 🇺🇦 (@Crypto_Dep) November 24, 2023
The surge in development activity is a positive sign for Uniswap. It indicates that there are active efforts to improve and enhance the platform.
High development activity suggests new features, optimizations, or overall improvements in Uniswap’s functionality. This can attract more users and developers, potentially strengthening Uniswap’s position in the DeFi sector.
The platform’s ability to innovate and adapt to the evolving needs of the decentralized finance space can contribute to its sustained success and prominence in the market.
Additionally, Uniswap also aimed to cut gas fees to attract more users to its protocol. Uniswap v4 plans to make swapping and creating pools cheaper by using smart contracts more efficiently. In v2 & v3, each pool is a separate smart contract, costing more gas. But in v4, all pools are in one smart contract (Singleton), making it way cheaper to swap and launch new pools—99% less.
In EVM chains, updating smart contract data, like swaps in and out of a pool, costs gas. Uniswap v4 introduces “flash accounting,” which, with the help of EIP-1153, only transfers net balances, saving on gas.
EIP-1153 lets v4 update and clear data in the same transaction. It tracks transfers, updates the final balance, and deletes the rest.
Realistic or not, here’s UNI’s market cap in BTC terms
Users only pay gas for the net transfers, not for every step in between. This makes using Uniswap v4 more cost-effective for users.
However, the price of the UNI token fell by 0.11% in the last 24 hours. At press time it was trading at $6.19.