April turns out to be a month to remember Uniswap UNI
+1.29%
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To begin with, the decentralized exchange powerhouse crossed the border $2 trillion in total trading volume on April 5, solidifying its status as a major DEX player as competition between networks increases, especially on Solana, where Uniswap does not have a presence.
On a more sour note, the platform got a Wells notices by the Securities and Exchange Commission on April 10, with many thinking it marked the start of a war on DeFi.
The SEC going after crypto is nothing new, but in the past we have seen major cases in which the organization was brought against centralized players.
Uniswap is a somewhat unique case. Many crypto platforms have withdrawn from the US customer base due to the fear of strict regulations. Some DeFi platform frontends in turn block users with a US IP address (although some people get around this with a VPN), but Uniswap does not engage in this practice. While frontends are typically one of the most user-friendly ways to interact with DeFi protocols, they are not the only way.
According to Uniswap Labs, it simply operates a website that gives people access to the Uniswap protocol, which is simply a series of smart contracts. This makes Uniswap a ripe target for the SEC, especially given its market dominance.
Support has been expressed online from the crypto community, with many noting the significance of the battle. Uniswap founder Hayden Adams wrote on X that he’s not surprised, “just annoyed, disappointed and ready to fight.”
There is still a long way to go in this fight. Coinbase received it Wells notices in March 2023, and so far not much has come of it, even over a year later.
UNI price promotion
The price of UNI, Uniswap’s governance token, fell slightly on the news, falling from over $11 just before the announcement to below $9. However, UNI got a boost from one in late February proposal to grant rewards to token holders, so the token as of Friday was still up 23% this year. However, last weekend’s market crash pushed UNI further down.
And it seems that interest in Uniswap itself is not waning daily volumes This weekend the price has risen and continues to reach the $3 billion mark.
Fees collected by the exchange’s front end also shot up late last week, but not as a result of increased usage. Uniswap Labs walked the six-month old 0.15% fee added to certain swaps on the web interface to 0.25%.
The change just seemed like a fact o’clock after Uniswap confirmed its message from Wells without much announcement. It’s possible the higher fees will help shore up Uniswap Labs’ coffers ahead of their legal battle. On Ethereum alone, the interface generated over $500,000 in revenue within one day of the switch.
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