Uniswap’s Potential $500 Million Revenue from Its Own Blockchain Assessed by Expert

The launch of Uniswap’s own Layer 2 solution, Unichain, could potentially generate around $500 million annually for Uniswap Labs and UNI token holders, according to analyst Michael Nadeau from The DeFi Report.

. @Uniswap generated nearly $1.3b of trading and settlement fees across 5 primary chains over the last year.

The protocol and token holders captured $0 of that value.

[100% went to Liquidity Providers, Ethereum Validators, MEV bots, and the L2 sequencers]

But with the launch… pic.twitter.com/vgpn7xjFky

— Michael Nadeau (@JustDeauIt) October 13, 2024

The largest source of revenue will be fees—over the past 12 months, the decentralized exchange generated $1.3 billion in fees for five major supported networks.

The Uniswap ecosystem could also earn income from MEV through its own validators.

For these reasons, liquidity providers on the platform will also benefit, the expert added.

Among the main losers from Uniswap’s transition to its own blockchain will be Ethereum. L1 network validators will lose a significant portion of fees from the exchange, amounting to approximately $368 million annually.

According to Etherscan, Uniswap is the largest gas payer in the network of the second-largest cryptocurrency by market capitalization.

Arbitrum and Base will also lose settlement and MEV fees on the platform.

Since Unichain is created within the Superchain space, Optimism will receive a portion of Uniswap’s fees, the expert noted.

Earlier, Dan Elitzer, co-founder of Nanscent, reflecting on the implications of the exchange’s launch of a Layer 2 solution, reached similar conclusions. Moreover, he believes this will have a significant impact on the DeFi segment as many projects may want to follow the example of the largest DEX by turnover.

Back in April, the company behind USDT, Tether Holdings, considered launching its own blockchain but abandoned the idea due to market saturation.