- Uniswap witnessed a surge in activity following the collapse of the SVB.
- However, the UNI token did not experience the same growth.
The fall of SVB has sent shockwaves to many investors in the crypto community. While major corporations and major stablecoin issuers took to the heat, the DEX sector of the crypto space managed to see growth.
Read UNI’s Price Forecast 2023-2024
For example, Uniswap witnessed an all-time high in terms of volume and outperformed Nasdaq up 5%.
Other DeFi protocols like Aave and Curve also saw a spike in activity during this period. Due to the high activity recorded on these protocols, the fees generated by them have increased.
Yesterday, #DeFi trades were very active because of the panic that prevailed #USDC. #uniswap fees saw an increase to $8.7 million, the highest since May 12 last year. Curve fees also rose, reaching $950,000, the highest since Nov. 10 from https://t.co/TuhZEhbDtA… https://t.co/LGTNu4bUGi pic.twitter.com/vysQRnlfke
— BecauseBitcoin.com (@BecauseBitcoin) March 12, 2023
Interestingly, the spike in fees generated impacted the revenue collected by these protocols. According to data from Messari, revenue generated by Uniswap increased by 0.74%, while the Curve protocol saw an increase of 0.12%.
However, Aave saw the most growth in this regard as it saw a 48.76% spike in terms of revenue collected over the past week.
The high revenue spike for Aave was made possible by the number of unique users on the Aave protocol increasing by 89.93%.
Not all roses and sunshine
However, the high activity on all of these protocols did not translate into an increase in Total Value Locked (TVL) on them.
According to data from DeFi Llama, Uniswap’s TVL is down 17.29% in the past few days. The TVL of the Curve protocol experienced a similar decline, falling by 20% over the same period.
Meanwhile, Messari’s data showed that bots were responsible for the majority of activity on the Uniswap protocol.
The same was observed for the Curve protocol. According to data from Dune Analytics, bone volume on the curve protocol has increased from 13.5% to 41.3% in recent days.
The tokens of these protocols also saw no growth. The prices of UNI, CRV and AAVE have fallen in the past month.
At the same time, the network growth of the tokens declined at the time of writing. So this suggests that these tokens were not used by new addresses at the time of writing.