Unichain, the native Layer 2 blockchain for Uniswap, has now surpassed Ethereum in transaction volume on Uniswap v4, handling most user activity.
75% Market Share Milestone
According to Dune Analytics, Unichain reflects approximately 75% of Uniswap v4 transaction volume, while Ethereum's share drops under 20%. This rapid success can be largely attributed to ecosystem improvements and growth incentives that Layer 2 began adopting since mid-April 2025.
Why Unichain Is Winning
Several crucial improvements accompanied the January 2025 release of Uniswap v4: gas savings, direct ETH support, dynamic fees, and custom code execution. These aspects enable v4 to be more flexible for developers, a fact Unichain took advantage of by focusing its efforts on the support of this version. Central to its success, Unichain does not work on Uniswap v3, and therefore can direct the entire liquidity and incentives to Uniswap v4.
What It Means for DeFi
Rapid adoption of Uniswap v4 on Unichain may rewrite the paradigm of how decentralized exchanges grow. Should Uniswap v4 become the standard architecture for sophisticated DeFi cases, Unichain is likely to experience significant gains due to heightened migration. This development illustrates how Layer 2 ecosystems are emerging as significant forces in the DeFi space, functioning as standalone advanced settings that can compete with Ethereum in both utility and client satisfaction.
The scalability upgrades that Ethereum has implemented, together with Unichain’s momentum, suggest that the future of the DeFi landscape might be dominated by protocol-native Layer 2 solutions.
