Uniswap plunges by 23% within a week, while SushiSwap gains visibility

  • Dune Analytics has proposed a vendor-neutral, community-centric analytics program on Uniswap.
  • Uniswap's current governance contract has upgraded from Governor Alpha to Bravo, improving upgradability and protocol safety.
  • With the ongoing SEC investigation on Uniswap Labs, the token's price has dropped nearly 23% within a week.

Layer-2 solution Arbitrum One recently launched on mainnet, and Uniswap and SushiSwap were listed as the first two decentralized applications joining the protocol. The competition between the two has further intensified with Sushiswap's ecosystem development in recent months. 

SushiSwap competes with Uniswap for dominance

SushiSwap, a decentralized exchange (DEX) and automated market maker (AMM), was launched with additional functionality compared to Uniswap and incentivized Uniswap users to migrate to its platform. 

Since its inception, the two DEXes have competed for dominance. At the time of writing, Total Value Locked (TVL) or (total value of assets staked on Uniswap) is $6.58 billion, while for SushiSwap it is $4.19 Billion. 

It may be premature to expect SushiSwap to beat Uniswap in market dominance and staked assets. However, with the latest upgrades in its ecosystem, SushiSwap is prepared to capture higher TVL. 

SushiSwap may have started as a clone of Uniswap. However, new token issuances are decreasing every month, and users can capture newly issued SUSHI through incentives on liquidity pools. Users are incentivized to stake on SushiSwap's liquidity pools, which is likely to drive volume from Uniswap to SushiSwap. 

Further, Uniswap Labs, the developer of UNI, is currently subject to the ongoing investigation by the Securities & Exchange Commission (SEC). 

The news of the investigation has negatively impacted trader sentiment, and UNI's price has dropped 23% over the past week. 

The SEC's litigation of Ripple Labs, the largest public holder of Ripple, led to a massive plunge in trader sentiment and the price of the altcoin, and proponents expect the investigation to have a similar impact in the case of Uniswap DEX's native token UNI. 

This poses an opportunity for SushiSwap to replace Uniswap as a DEX with a larger TVL. 

Uniswap V3's launch on Optimistic Ethereum mainnet enabled nearly ten times the savings in transaction costs. This launch and upgrades in Uniswap V3 have triggered a neck-and-neck competition between the two DEXes. 

Uniswap was severely criticized for a proposal to grant $25 million to Flipside Crypto, a community-enabled crypto analytics platform. Dune Analytics, an Ethereum ecosystem analytics platform, emerged as a staunch opponent of the grant proposal. 

The platform has now proposed a vendor-neutral analytics program on Uniswap. 

Further updates on Uniswap governance include an upgrade from Governor Alpha to Bravo, which boosts platform security and upgradability. 

Uniswap has fewer technical upgrades to look forward to in the short term; however, the 24-hour trade volume has hit $33.3 million (Arbitrum and Optimism combined), four times the previous all-time high. 

Uniswap is leading among decentralized exchanges, and it remains to be seen whether SushiSwap will dethrone the former. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu price looks south towards $0.0000060 as technicals favor SHIB bears

Amidst an underlying downbeat mood across the crypto market, Shiba Inu extends the bearish momentum into the third straight day on Sunday. The tide is seen turning in favor of SHIB bears once again, as well depicted by Shiba Inu’s daily technical graph, with the market licking its wounds from the China-led blow. Upside remains elusive with 61.8% Fib offering strong resistance.

More Shiba Inu news

Cardano price eyes a drop towards $1.85

Cardano price is once again on the slippery slope this Sunday, kicking off a new week on the wrong footing, as ADA bulls lack follow-through recovery momentum. ADA sellers target 100-DMA at $1.85 on a firm break below $2.

More Cardano News

Ethereum bears contemplate a drop to $2450

ETH price is building up downside pressure while clinging to the 200-SMA support. RSI remains flat below the midline, keeping the sellers cheerful. A drop towards $2450 remains in the offing if the 200-SMA caves in.

More Ethereum News

Polkadot price at make-or-break point as DOT awaits a range breakout

Polkadot price spots a potential symmetric triangle pattern on the 1D chart. RSI stands neutral at 50.00, suggesting a lack of clear directional bias. 21-DMA offers immediate resistance, 50-DMA guards the downside.

More Polkadot News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast