Uniswap v4’s New King: How Unichain Took Over Ethereum in Transaction Volume

Unichain Leads Uniswap v4 with 75% Market Share—Is Ethereum’s Dominance Over?

Uniswap v4’s New King – Unichain, the native Layer 2 blockchain for Uniswap v4, has now overtaken Ethereum in transaction volume, becoming the dominant chain for the decentralized exchange’s latest version. According to a Dune Analytics dashboard by Entropy Advisors, Unichain holds around 75% market share, while Ethereum’s share is below 20%. This major shift in dominance has accelerated since mid-April 2025, driven by Unichain’s rapid growth and strategic incentives.

Ethereum Remains Leading Chain for Uniswap v3

Although Unichain leads in Uniswap v4, Ethereum continues to dominate Uniswap v3, maintaining higher trading volume on the older version. Uniswap v4, launched in January 2025, introduces new features like custom code execution hooks, dynamic fees, gas savings, and native ETH support. While Ethereum remains the backbone for v3, Unichain focuses solely on v4, cementing its role in the Uniswap ecosystem.

Unichain’s Growth Fueled by Strategic Incentives

Unichain’s rise to the top of Uniswap v4 is largely attributed to a $45 million liquidity incentive program, which has significantly increased the number of active addresses and the value locked (TVL). According to DeFiLlama, Unichain is now the third-largest Layer 2 rollup by TVL, at approximately $800 million.

Efficient Transaction Costs and Speed

Unichain, built on the Optimism Superchain, offers 95% lower transaction fees compared to Ethereum’s Layer 1. The platform boasts one-second block times and plans to introduce 250ms sub-blocks for near-instant transactions, positioning itself as a highly efficient Layer 2 solution.

Unichain’s growing influence on Uniswap v4, paired with its strategic incentives and technological advancements, signals its continued dominance in the evolving DeFi landscape.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.