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Arbitrum extends lead over Optimism as Uniswap posts record volume on L2

October 19, 2021No Comments


The world's most popular decentralized exchange, Uniswap, is seeing a surge in layer two volumes as Ethereum transaction fees rise once again.

On October 19, Uniswap founder Hayden Adams tweeted that daily volume on v3 implementations of decentralized sharing on layer two networks has risen to record levels. Adams estimated that Uniswap v3 processed an unprecedented combined daily volume of $ 115 million on the Arbitrum and Optimism networks without providing a source.

While Adams' post came out amid peak US trading hours, the data comes from the analytics provider Nomics at the time of writing this article (3am UTC) suggests that Uniswap v3 generated $ 80 million in volume in Arbitrum and approximately $ 14 million in Optimism during the last 24 hours, respectively.

However, Uniswap v3's combined layer two volumes are still small compared to its core network deployment, which currently accounts for $ 1.3 billion in daily activity according to CoinGecko.

Related: Ethereum layer-two allegedly processes more transactions than Bitcoin

Despite the Ethereum Foundation and crypto giant Andressen Horowitz backing Optimistic Ethereum, Arbitrum appears to have emerged as the second-layer accumulation solution of choice for the DeFi community.

According to the layer two data aggregator L2beat, Aribtrum represents 60% of the total value blocked (TVL) in layer two networks combined from their mainnet launch in early September. Arbitrum's TVL currently stands at $ 2.29 billion after increasing by 14% over the past week.

The decentralized derivatives exchange dYdX ranks second behind Arbitrum with $ 838 million or 22% of the value locked in the sector. Comparatively, Optimism just attracted just $ 269 million in locked capital, ranking as the third largest tier two with a 7% stake in second tier TVL.

The combined TVL of layer two networks posted a record $ 3.8 billion on October 17.