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On a seven-day average, Uniswap liquidity provider payments have exceeded BTC network sales.
For the second day in a row, Uniswap has outperformed Bitcoin in terms of regular fee generation.
Evan Van Ness, a crypto industry blogger, noticed the fee flipping and cited figures from CryptoFees, a website that compares the regular fees created by the top blockchain networks.
Uniswap has fully flipped #Bitcoin in fees
Wouldn’t surprise me if market caps were
in the future. pic.twitter.com/iNUe7Jmw9c
— Evan Van Ness (@evan_van_ness) May 11, 2021
Uniswap founder Hayden Adams was quick to post about the milestone:
“Uniswap v2 LP fees finally passed Bitcoin network fees on the 7-day average. Would be even higher if [cryptofees] tracked v3,”
At the time of writing, Uniswap had raised $7.1 million in fees in the previous 24 hours, relative to Bitcoin’s $4.6 million.
While a million opponents quickly blamed Uniswap’s high gas fees, Adams pointed out that the money in question was simply exchanging fees charged to liquidity suppliers rather than gas fees. In reality, he said that Uniswap’s ETH gas fees are orders of magnitude higher than Bitcoin’s transaction fees.
👀 @Uniswap v2 LP fees finally passed Bitcoin network fees on the 7 day average
— Hayden Adams 🦄 (@haydenzadams) May 11, 2021
According to the site, Uniswap has already flipped Bitcoin for two days in a row for liquidity provider payments. The decentralised exchange’s 7-day average is currently higher than Bitcoin’s, at $5.9 million vs $5.3 million.
However, owing to record high petrol prices, Ethereum was well ahead of both Uniswap and Bitcoin, with a daily fee count of nearly $90 million.
In a separate tweet, Adams stated that Ethereum layer-two scaling is badly needed, stating that today, Uniswap users alone have spent around $42 million on gas fees, adding “this is almost 5X what was spent on Bitcoin network fees during the same period”.
When Uniswap version 3 was released on May 5, there was a storm of feedback from users because gas fees seemed to be much higher than in the previous iteration of the programme. A layer-two edition focusing on Optimism will be released shortly.
Average gas prices have skyrocketed to a record high of $68 according to Bitinfocharts. Eth Gas Station is reporting that gas costs for more complex operations such as smart contract interactions or DEX token swaps are currently over $200.
Many of the respondents to Adam’s tweet asked when layer-two scaling would be rolled out for Uniswap. YouTuber Lark Davis was among them, stating:
“Great, now implement some layer 2 scaling so that Uniswap is actually usable by non-rich users. Polygon is ready and waiting. Aave, Curve, Sushi, Pool together all on it. Optimism is months away. Why wait?”
However, with whitelisted programmes such as Uniswap, optimism could be closer than many know. Synthetix, another whitelisted DeFi project, has just completed an update to allow Optimism trading, but there is no word on when it will go live.