Consecutively, on a two-day row, Uniswap has shocked the community by surpassing BTC network revenue with its liquidity provider fees. Based on the fees which they generate daily, Uniswap is higher than the fees from Bitcoin.
Evan Van Ness made this observation from CryptoFees. A site that puts up a daily comparison of the fees generated by prominent blockchain networks. As a crypto blogger Ness also shared his observation by displayed this flipping in the fees.
Reacting to this breakthrough, the founder of Uniswap, Hayden Adams, made a post that the flipping margin of Uniswap over Bitcoin will increase with continuous tracking from CryptoFees.
During the time the report was made, the display from the CryptoFees website shows that Bitcoin has generated $4.6 million while the fees from Uniswap were already at $7.1 million on a 24-hour rating.
What Pushed Uniswap Revenue Over Bitcoin
While observing the comparison, most critics complained that the increased generated fees in the Uniswap fees are from its high gas fees. However, Adams clarified that the questionable revenue was from swapping fees and not gas fees. He corrected that it’s the liquidity providers that get the payment from the swapping fees.
Furthermore, he claims that when comparing the gas fees generated by the two networks in ETH, Uniswap fees are on the exponential level of the Bitcoin fees.
It’s now an unquestionable fact that with the liquidity providers’ fees, Uniswap has flipped Bitcoin consecutively for two days. This implies that for the decentralized exchange made on a 7-day average, Uniswap’s value compared to Bitcoin’s shows $5.9 million to $5.3 million.
With all the drags on this sudden overtaking, Ethereum still stands out on the lead above Bitcoin and Uniswap. Ethereum brags on top with about $90 million as a daily generated fee from its high gas fees.
Urgent Need for Ethereum L2 Scaling
In another tweet, Adams said there’s an urgent need for Ethereum’s layer-two scaling. He lamented that just within a day, Uniswap utilizes so much on gas fees as over $42 million. He compared that this figure is five times what is obtainable in the Bitcoin network in the same duration. This implies that Uniswap spends more on gas fees in ETH than Bitcoin.
Recall that Uniswap users made huge tons of complaints on the 5th of May after the launching of version 3. This is because the gas fees surged up when compared with what was in place with the previous iteration. Thus, Uniswap is planning on launching an Optimism-based layer-two version very soon.
The sudden increase in average gas prices to $68 is reported by Bitinfocharts. Also, more complex operations are over $200 in Eth Gas Station. Such operations include DEX token swaps and smart contract interactions.