Uniswap V3’s launch on the BNB chain was highly anticipated, and it finally happened a month ago. This was expected to give the decentralized exchange (DEX) a significant boost. But what is the current state of the platform, and how has it performed since then?
In February, 0x Plasma Labs proposed bringing Uniswap V3 to the BNB Chain, and it was approved by over 55 million UNI token holders. Uniswap governance approved the proposal on 22 January with 80% support. According to 0xPlasma Labs, deploying V3 on BNB Chain could increase Uniswap’s TVL by $1B. After several months of internal conflict, the leading decentralized exchange finally went live on BNB Chain on 15 March.
Since the launch, Uniswap V3 on BNB Chain has shown some positive results. The Total Value Locked (TVL) and active addresses have shown an uptrend. However, the MVRV has declined, indicating a bearish future for AAVE.
Uniswap’s V3 version brought in concentrated liquidity, a feature that greatly enhanced the efficiency of capital usage for DEXes. In Uniswap V3, liquidity providers’ positions are no longer interchangeable because they can now provide liquidity within specific price ranges. This means that LP holdings in Uniswap V3 cannot be represented in the underlying protocol as ERC20 tokens, unlike in Uniswap V2.
Uniswap v3 volume and TVL post-BNB launch
According to DefiLlama, an analysis of the Total Value Locked (TVL) and trading volume on Uniswap v3 revealed a surge in volume and a decrease in TVL leading up to the launch on BNB.
On 11 March, trading volume spiked to over $13 billion, while the TVL was around $2.5 billion. However, following the launch on the BNB chain, the TVL has been steadily increasing and was over $3 billion, at press time.
Source: DefiLlama
Active user surges as MVRV declines
Examining another on-chain metric of Uniswap v3, an upward trend was observed. The DefiLlama active user metric revealed that the number of active users on the platform had steadily grown.
The metric surpassed 155,000, which marked a substantial increase from the 50,000 figure recorded earlier in April.
Source: DefiLlama
On the other hand, the 30-day Market Value to Realized Value ratio (MVRV) for UNI suggested that despite the positive on-chain metrics, the asset had not been performing well.
As of this writing, the MVRV was over -19.2%. The current state indicated that UNI was significantly undervalued at its present price range. However, it also suggested a possibility of a price correction to the upside.
Source: Santiment
