Memecoins trigger the use of Ethereum DEXs

Shadow Fork of Ethereum
Key facts:
  • In a single day, there were more than 70,000 users using decentralized Ethereum exchanges.
  • The emergence of new memecoins seems to drive the use of these DeFi protocols.

Meme-based cryptocurrencies, known as memecoins, are revolutionizing the decentralized finance (DeFi) market on the Ethereum network. Amid more users coming to the market, Uniswap, one of the largest decentralized exchanges (DEXs) in the ecosystem, maintains its dominance and achieved a trade volume milestone.

On April 19, 2023, a record of more than 72,000 unique users was recorded on Ethereum DEXs. This figure represents the highest number of users since the end of 2021, according to data from The Block.

The memecoin frenzy recently gained steam, as reported in Market Times. The phenomenon occurred through tokens such as PEPE, which had a spectacular increase in its price in just a few days. CHAD was another of the tokens that were all the rage weeks ago, and now Floki Inu (FLOKI) seems to be on the crest of the wave.

This sudden emergence of some memecoins had other impacts on Ethereum, such as the momentary increase in gas fees on the network. The MEV (maximum extractable value) bots had a lot to do with it, as explained in this portal.

Uniswap, the standout among Ethereum DEXs

According to data shared by Dune Analytics, the firm behind the trading platform, Uniswap has surpassed the $1.5 trillion mark in total trading volume since its launch. In April, Uniswap passed the milestone of $1.5 trillion traded on its DEX. Source: @danrobinson/ Dune Analytics

In March, Uniswap had recorded $70 billion in trading volume, outperforming Coinbase—a centralized exchange—for the second month in a row. Thus, it fell behind only Binance, while it continues to expand into networks such as BNB Chain and Polygon’s zkEVM.

Despite all of the above, other areas of commerce within the Ethereum ecosystem suffered a mixed fate. We are talking, for example, about the NFT markets, which lost the influx of traders and reached levels not seen since 2021.