Jul 29, 2025
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If you’re slightly familiar with crypto, you’ve probably heard of Uniswap. It’s one of the most important projects in the crypto space that made it possible to trade tokens directly with each other, without needing a centralized exchange like Binance. This innovation helped spark the growth of decentralized exchanges (DEXs).
Uniswap v4, the latest version of the popular decentralized exchange, is making waves with major milestones. Here’s what’s happening.
A new milestone for Uniswap
As of July 2025, Uniswap v4 has already processed over $100 billion in total trading volume and holds more than $1 billion in total value locked (TVL). TVL measures how much money people have put into decentralized finance (DeFi) apps.
Right now, Uniswap v3 still sees the most activity, handling about 60% of all Uniswap trades. But v4 is gaining ground quickly, already processing around 30% of trades. For anyone interested in the long-term potential of DeFi, this rapid growth is an important trend to watch.
How is Uniswap v4 different?
What makes v4 stand out from its predecessors is its programmable and modular infrastructure.
1. Unichain: Unichain is an Ethereum layer two blockchain (a secondary system built on top of a main blockchain that helps make transactions faster and cheaper) built for Uniswap. This new chain has already overtaken Ethereum in terms of Uniswap v4 transaction volume, now accounting for nearly 50% of v4 activity.
This is important because lower fees and faster transactions make Uniswap more attractive to traders. If you’re a UNI (Uniswap’s native token) investor, this is good news. More usage means more fees for the protocol and stronger growth.
2. Hooks: Uniswap v4 introduces something called Hooks, special pieces of code that let developers customize how trading works on the platform. In July alone, over 100 new Hooks were added each day, showing that developers are really excited and actively experimenting with what’s possible.
With Hooks, developers can build advanced features like:
- Dynamic fees that change based on market conditions
- Automated actions that run directly on the blockchain
- Smarter trading strategies built right into the system
3. Growth: Uniswap v4 is currently seeing an average daily trading volume of $643 million, and the protocol has already generated over $44.7 million in cumulative swap fees since its launch.
Swap fees are small fees users pay when they trade one crypto token for another on Uniswap. These fees usually go to people who provide the liquidity (the tokens) for others to trade with.
Uniswap v4’s customizable swap fees can contribute to protocol revenue only if governance activates the protocol fee on a per-pool basis using Hooks.
Why does this matter for UNI holders? Strong usage and real revenue can help support the long-term value of the UNI token, giving it more strength and purpose in the growing DeFi world.
Uniswap v4 brings faster trading, lower costs, and new ways to generate revenue, including future options like sharing fees with token holders. This upgrade isn’t just keeping Uniswap competitive; it’s pushing DeFi forward.
This report has been prepared and issued by 21Shares AG for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however, we do not guarantee the accuracy or completeness of this report. Crypto asset trading involves a high degree of risk. The crypto asset market is new to many and unproven and may have the potential not to grow as expected.Currently, there is relatively small use of crypto assets in the retail and commercial marketplace in comparison to relatively large use by speculators, thus contributing to price volatility that could adversely affect an investment in crypto assets. In order to participate in the trading of crypto assets, you should be capable of evaluating the merits and risks of the investment and be able to bear the economic risk of losing your entire investment.Nothing herein does or should be considered as an offer to buy or sell or solicitation to buy or invest in crypto assets or derivatives. This report is provided for information and research purposes only and should not be construed or presented as an offer or solicitation for any investment. The information provided does not constitute a prospectus or any offering and does not contain or constitute an offer to sell or solicit an offer to invest in any jurisdiction. The crypto assets or derivatives and/or any services contained or referred to herein may not be suitable for you and it is recommended that you consult an independent advisor. Nothing herein constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal recommendation. Neither 21Shares AG nor any of its affiliates accept liability for loss arising from the use of the material presented or discussed herein.Readers are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors.This report may contain or refer to material that is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject 21Shares AG or any of its affiliates to any registration, affiliation, approval or licensing requirement within such jurisdiction.
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