Uniswap Trading Volume Dipped to Five-Month Low in February

Uniswap took a further backseat in volume during the month of February after the decentralized exchange saw a 23% decrease in liquidity from January.

February proved to be a tough month for decentralized exchanges, primarily Uniswap. The DEX recorded approximately $54 billion in trading volume during the second month of 2022, according to BeInCrypto Research.

Inasmuch as this figure seems surprising due to Uniswap being the largest DEX by daily trading volume, the total volume for the top-five DEXs for January was down. Volume in February fell even further by $28 billion from January, a staggering 29% decrease.

Uniswap volume still decreasing from 2021

The decrease in volume over the last month could have a massive effect on Uniswap since it competes with several other major DEXs in the exchange space. Although Uniswap’s total volumes are up 70% since February 2021, which saw $32 billion in volume recorded, the decentralized exchange has still not surpassed its November and December 2021 monthly volumes.

Uniswap recorded an all-time high monthly volume of $85 billion in November 2021 and almost reached the same feat by recording $84 billion to close out December 2021. Volumes recorded at the end of January and February 2022 were 56% and 55% lower than volumes recorded in November and December 2021 respectively.

 Source: Dune Analytics

The last time Uniswap recorded a monthly volume below $60 billion was in September 2021 when it fell to approximately $53.4 billion.

The figure from February 2022 was just 2% higher than the value recorded at the end of the third quarter of 2021.

What caused the volume decline?

Declining transaction counts are certainly a prime factor for factor the fall in volume.

The transaction count for Uniswap at its peak volume in November 2021 was 63,147.

This declined by 3% to 61,013 by the end of December 2021.

The total transaction count for Uniswap on the last of November further declined 39% to 38,489.

Source: Messari

The fall was steep in February 2022 as a staggering 49% was shed off the total transaction count for Uniswap which brought the total to 31,765.