BitOffer Institute: 7X Increasing Volume on Uniswap, ETH Targeting at $1,000

[Cici Lee]

Source from BitOffer Institude

Uniswap added 57,976 new users in July, which goes up about 132% month-on-month, according to The Block Research. Meanwhile, Uniswap's liquidity volume hit a new high, with UniswapV1 and V2's total liquidity reaching more than $2 billion as of August 11, accounting for half of DEX's total liquidity. In the past month, Uniswap has seen a 15-fold increase in page views and a seven-fold increase in transactions. At this rate, Uniswap will soon have over $10 billion in transactions, which could push Ethereum to $1,000.

Uniswap is a decentralized trading protocol which developing based on Ethereum. It replaces manual quotations with an established algorithm, which not only eliminates centralized matchmaking and clearing but also eliminates the market makers in transactions. The most important feature is that users can exchange tokens directly in the exchange pool, and the revenue depends on the amount of money entering the exchange pool.

In 2017, Vitalik Buterin, the founder of Ethereum, published a post "Let's Run on-chain Decentralized Exchanges the Way We Run Prediction Markets" on Reddit, in which he suggested a new DEX mechanism. After reading the post, Unemployed Hayden Adams decided to follow this line of thought on the advice of his friends and create an Automated Market Maker. By the end of 2017, the initial proof-of-concept, intelligent contract code, and website design were completed, and this was the birth of Uniswap.

Between its launch in 2018 and 2019, Hayden Adams distributed all the fees for Uniswap transactions to users, such a move increased user stickiness but limited Uniswap's development. Eventually, Uniswap V1 was launched in early 2019 and won a prize from the ETH Foundation. In April, when DEX hit the market, Uniswap began to get a lot of attention from investors, combined with the breaking news of Uniswapv2's launch, Uniswapv2's trading volume briefly topped $100 million, making it the DEX leader.

DEX's total trading volume topped $1 billion for the first time in June and hit $4.5 billion in July, while Uniswap's trading volume on Aug. 11th was $250 million, which is two-thirds of Coinbase's trading volume and more than Gemini and Polo's combined.

According to The Block Research, on August 11th, the total transaction fees on Uniswap exceeded Bitcoin's miners' total, and in July Ethereum miners earned $143.8 million, the highest in 23 months. In which transaction fees accounted for 23% of Ethereum miners' earnings at that month, this shows that Uniswap accounted for a significant portion of Ethereum’s earnings.

From BitOffer exchange chief analysis Lucian’s point of view, according to the development of Uniswap’s development speed, the volume will break through $10 billion in a short time. This will both increase the income of the ETH miners and attract more investment institutions and individual investors, which will push the Ethereum rise to $1000. Thus, now is the best time to invest in the ETH.

However, Lucian argues that it is better to invest BitOffer's ETH3X ETF rather than Ethereum spot trading. As the ETF starts at a minimum of three times of profits, with the smart dynamic positioning and fund compounding, can yield up to 17 times. Since the July 19th rally, the Ethereum ETF (ETH3X) has risen from $6 to $28, which goes up nearly 500%. With DEX, DeFi, and the launch of ETH 2.0, if Ethereum rises to $1,000 over the next few months, which will be a more than two-and-a-half-fold increase, the ETH3X ETF would gain as much as 42-fold.

So if you buy Ethereum for $10,000, and Ethereum goes up 2.5 times, you can make at most 2.5 times profits, and $10,000 becomes $25,000. Furthermore, invest in Ethereum ETF (ETF3X) is a different story. If Ethereum really does go up by 2.5 times, you can earn up to 42 times, which means with the cost of $10,000, you will get $420,000 profit in an instant. The Ethereum ETF (ETH3X) is clearly a better investment.

[Rubel007]

According to The Block Research, on August 11th, the total transaction fees on Uniswap exceeded Bitcoin's miners' total, and in July Ethereum miners earned $143.8 million, the highest in 23 months. In which transaction fees accounted for 23% of Ethereum miners' earnings at that month, this shows that Uniswap accounted for a significant portion of Ethereum’s earnings

[Cici Lee]

The potential of ETH is big and with the rolling out of ETH 2.0 the potential is even bigger now. Of course there are associated risks with this but in the end we cannot go on without taking risks. Judging by the current metrics of the activity on ETH and the interest of retails investors a.k.a the demand on ETH on exchanges like BitOffer , Coinbase, Primexbt, Kraken etc.. we can clearly see that the interest is growing.

[Hugo Barbosa]

Another very interesting benefit of Uniswap is their fee-sharing model. Users pay a 0.3% transaction fee on Uniswap swaps. These transaction fees are directly shared between all liquidity providers of this pool (e.g. the ETH-AMPL pool). This can be very lucrative for pairs that have relatively low liquidity provided versus high volume.