Ark Invest analyst Lorenzo Valente identified Uniswap as one of the stronger-performing legacy cryptocurrency projects in the current market cycle, citing resilient trading volumes, expanding revenue, and growing adoption of Uniswap V4 alongside the activation of its fee switch. Uniswap remains the dominant decentralized exchange (DEX) in DeFi by trading volume, a position it has held consistently since its 2018 launch. In a thread shared on X, Valente also noted that tokenized stocks and other assets are moving closer to the protocol, aligning with a broader industry trend toward real-world asset (RWA) tokenization that has drawn interest from both traditional financial institutions and crypto-native protocols.

Unichain Adoption Remains Limited While Core Protocol Sustains Volume

Valente reported that Uniswap's layer-2 network, Unichain, has struggled to gain meaningful traction since its launch. The network currently generates approximately $5,000 to $7,000 in monthly real economic value (REV) and processes roughly 3,000 daily transactions, with total value locked near $30 million. Overall activity on Unichain remains constrained, suggesting that the protocol's user base has not yet migrated en masse to Uniswap Labs' own scaling solution amid a crowded landscape of competing Ethereum layer-2 networks.

By contrast, Uniswap's core automated market maker (AMM) business continues to perform at scale. The protocol handles approximately $15 billion in weekly trading volume. For context, Valente noted that Uniswap processed roughly $20 billion to $25 billion in weekly volume during the 2021 market peak, indicating that current activity levels have remained relatively stable over time despite the emergence of numerous rival DEX platforms.

V4 Adoption Drives Revenue Growth and UNI Burns

According to Valente, each major Uniswap upgrade has achieved progressive user adoption. Version 2 overtook Version 1, and Version 3 subsequently became the dominant iteration. More recently, Version 4 has surpassed Version 3, with the two versions now each accounting for roughly half of all protocol activity.

Version 4 also introduced the protocol's long-anticipated fee switch. Valente stated that Uniswap now generates more than $1 million in weekly revenue across Ethereum, Base, and Robinhood Chain, equating to approximately $5 million per month or an annualized run rate near $60 million.

Additionally, the V4 fee switch is currently burning approximately $90 million worth of UNI tokens annually, based on the trailing seven-day pace. The activation marks a milestone for Uniswap governance, as the question of whether and how to direct protocol fees to token holders has been debated within the UNI holder community since the token's 2020 introduction.

Key Technical Price Levels for UNI

At the time of analysis, UNI traded at $3.88. The token remained below its 50-day moving average of $4.04 but held above the 200-day moving average of $3.64.

Technical support was identified between $3.05 and $3.20, following a rebound in June from approximately $2.40. Resistance was located near $4.04, with an additional resistance zone between $4.20 and $4.40, where recent selling pressure had emerged.