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Researcher: Uniswap TVL may fall out of the top ten, and there is room for improvement in returns and capital efficiency

Researcher: Uniswap TVL may fall out of the top ten, and there is room for improvement in returns and capital efficiency

Bitget2025/02/09 06:29

Odaily Planet Daily reports that DeFi researcher Ignas stated in a post on X that Uniswap's TVL has slipped to tenth place and may fall out of the top ten. Looking at the DApps ranked in the top 9 by TVL, from Lido Staking, EigenLayer/Babylon Restaking to Pendle, Maker and Aave, they all have something in common related to yield and capital efficiency. It is worth mentioning that Tron's JustLend and Morpho are catching up with Uniswap.

The decline in Uniswap's ranking is due to many LPs actually losing money due to impermanent loss, while the WBTC/ETH pool only generates an APY of 3.7% (not considering impermanent loss) from transaction fees.

Due to Ethereum’s high transaction costs (even on L2) and low TPS, transactions are migrating to Solana which further reduces Uniswap’s earnings causing LPs withdraw their capital elsewhere. The fee switch will further depress yields forcing LPs away.

Ten days ago, Uniswap v4 was launched with a cumulative TVL reaching $65 million (with just 1inch tokens valued at $20 million). Currently, Uniswap's solution might rely on higher capital efficiency brought by Uniswap v4 and external ecosystem Hook developers while providing incentives for developers building on Uniswap v4. In addition, it might be worthwhile for Uniswap consider leveraging its brand name attempt launching on Solana.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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