Uniswap V3 Goes Live on Binance Smart Chain: Advantages and Market Reaction
Decentralized exchange Uniswap version 3 (V3) has officially gone live on the Binance Smart Chain (BNB Chain), a smart contracts-based blockchain developed by Binance. This integration was executed after receiving 66% of governance votes from Uniswap’s community, which has over 55 million UNI token holders. The proposal to deploy Uniswap V3 on the BNB Chain was initiated by 0x Plasma Labs, a self-custodial digital assets management platform.
Uniswap on Ethereum vs Binance
As Uniswap is built on Ethereum, its users face high gas fees. However, with the expansion to the BNB Chain, they can now benefit from lower transaction fees to trade and swap tokens, thereby increasing user growth and tapping into new geographical markets. The integration allows the DeFi protocol to increase awareness and adoption among institutional investors.
Advantages of the Expansion
- Lowering Uniswap’s gas fees
- Increasing accessibility and liquidity for users
- Allowing Uniswap to serve all users within the Web3 space
- Enabling Uniswap users to leverage the BNB chain’s ecosystem to trade and swap tokens across the network
- Fueling the growth of both Uniswap and BNB Chain
Total Value Locked with Uniswap Across All Versions
According to DefiLlama, the Binance DeFi chain supports nearly 555 protocols that combine to have a total value of over $5.01 billion locked with them. In comparison, the total value locked with Uniswap across all its versions is a little under $3.5 billion.
Usually, ecosystem development results in bullish markets. However, with Uniswap, it resulted in a bearish trend. At the time of writing, Uniswap (UNI) was traded at the price of $5.94 and declined by 7.20% in the last 24 hours according to CoinMarketCap.
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