- Uniswap’s new blockchain, Unichain, promises enhanced cross-chain swaps and better transaction efficiency.
- Ethereum gas cost reductions follow increased block limits, signaling scalability prep for the Pectra upgrade.
- Despite advancements, both Uniswap’s token and Ethereum’s transactions show limited immediate impact.
Uniswap has launched its proprietary blockchain, Unichain, taking another significant step in advancing the decentralized finance (DeFi) ecosystem.
Built within Optimism’s Superchain infrastructure, Unichain seeks to optimize cross-chain exchanges, resolving the perennial problem of fragmentation of L2 network liquidity. By leveraging the Flashbots integration, it offers near-instant transactions, reducing losses due to miner-extractable value (MEV) while building an optimal user experience.
According to the latest report by IntotheBlock, despite its very promising groundwork, traction for Unichain has only just started. TVL (Total Value Locked) had risen to $3 million by the first week, while day-by-day trade volumes averaged $1 million.
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As cross-chain exchanges launch and further protocols implement the chain, Unichain has the potential to become one of the best L2s, possibly propelling greater transactional volumes across the ecosystem of Ethereum.
UNI Token Faces Market Challenges
While Unichain has technological superiority, it has had minimal impact on the governance token, UNI, of Uniswap. UNI has lost approximately 25% over the past 30 days, showing poor sentiment.
Transaction volumes, too, have remained level, showing no signs of surges even while there has been frenzy over recent launches by Uniswap.
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Market participants are still skeptical, waiting to see if the adoption by Unichain will lead to tangible rewards for UNI holders. At this juncture, the subdued trade shows that the market has not fully accepted the full potential of this fledgling blockchain.
Ethereum Gas Limit Increase Spurs Affordability
In parallel with Uniswap’s developments, Ethereum’s ecosystem has seen an impactful update. Validators recently signaled increased gas limits on the Ethereum mainnet, effectively expanding block sizes and reducing transaction costs.
Gas fees have also dipped down to multi-year lows, below 1 gwei per transaction. The change is one of the steps toward preparing the network for the upcoming Pectra upgrade, due next month, March 2025.
The Pectra upgrade aims to enhance scalability, as well as enhance the inclusion rate of L2 transactions per batch (blobs per block). However, the near-term implications for transactions remain minimal. Transactions per day maxed out at 1.34 million after the adjustment, below month highs.
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Long-Term Implications for Ethereum and Uniswap
Both Unichain’s launch and Ethereum’s scaling adjustments address the general objectives of Ethereum’s vision, one that has an emphasis on rollsups. While initial momentum appears sluggish, these adjustments are slated to form the foundation for an interconnected, streamlined network of L2 chains over the level-1 network of Ethereum.