The era of DeFi capital efficiency is here! Uniswap v3 conversion rate exceeds 100%, trading volume in the first two weeks approaching v2.

Despite being launched on the Ethereum mainnet for only two weeks, the trading volume of Uniswap v3 has surpassed SushiSwap, making it the second-largest decentralized exchange platform on Ethereum, second only to Uniswap v2.

Uniswap v3 Rising Rapidly

According to a tweet by Messari researcher Ryan Watkins today, the $65 billion weekly trading volume of Uniswap v3 is 15% higher than SushiSwap ($56 billion), with 0x closely following SushiSwap at $30 billion in trading volume, followed by Curve at $19 billion, and Balancer at $12 billion.

In just two weeks Uniswap V3 has become the largest DEX on Ethereum next to Uniswap V2.

At its current pace of growth it will likely surpass V2 in volume by end of month.

And the most impressive part about it, is V3 is doing so with a fraction of the capital.

1/ pic.twitter.com/oAQzt316YD

— Ryan Watkins (@RyanWatkins_) May 19, 2021

Furthermore, on May 17, without liquidity mining rewards, Uniswap v3's 24-hour trading volume has reached 81% of v2's trading volume. Ryan Watkins predicts that at the current growth rate, its trading volume is likely to surpass V2 by the end of May.

More importantly, Uniswap v3's total value locked (TVL) is only 15% of Uniswap V2, making it the only decentralized exchange with a TVL conversion rate of over 100% (5 times that of Uniswap V2).

Handling such high trading volume with very little locked assets, Ryan Watkins commented:

"Uniswap V3 represents a new era of DeFi capital efficiency."

The market share after the merger of v2 and v3 also means that Uniswap now accounts for over 60% of all Ethereum DEX trading volume.

Uniswap's Next Steps

Uniswap founder Hayden Adams also tweeted about their achievements today. During yesterday's market crash, Uniswap's overall trading volume reached $63 billion, and the daily trading volume of Uniswap v3 surged to $27 billion, which is 3.3 times its TVL of $9 billion.

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🤯 Crazy day in crypto (especially for all the newbies). How did @Uniswap perform?

✅ No down time, unlike most CEX, although fees were high

🚀 Insane all time high daily volume of ~$6.3b

3⃣ ~$2.7b volume in 2 week old Uniswap v3 on only ~$900m TVL (3.3x vol/TVL)

— hayden.eth 🦄 (@haydenzadams) May 20, 2021

Hayden Adams also added that reducing user transaction fees is the key focus for the next development. Therefore, both Layer 1 and Layer 2 scalability will be the next areas Uniswap will focus on intensively.