- Uniswap developers won a grant from the Ethereum Foundation.
- The newly launched NFT marketplace of Uniswap observed a decline in activity.
Despite an increase in activity over the past few months, Uniswap was not able to reach the activity levels it achieved in 2021. However, with new developments being made by the engineering team, the protocol might be able to generate interest from users.
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New Grants
According to Uniswap’s tweet from 11 May, Uniswap’s team of engineers won Ethereum Foundation’s grant for their developments relating to Account Abstraction.
This update showcased Uniswap developers’ expertise in their domain and how their skills could enhance the overall functioning of the Uniswap protocol.
However, the overall code commits being made on Uniswap’s GitHub suggested that development activity might have slowed down on Uniswap.
Over the last month, the number of code commits being made on the protocol fell by 6.3%. Even though the number of code commits on the protocol declined, the overall number of core developers continued to increase on the protocol.
Source: token terminal
This spike in the number of developers could result in faster upgrades and updates on the protocol and attract more users.
Getting users to stay
Even though the number of users on the protocol was increasing steadily, it wasn’t able to sustain the interest from users. According to Dune Analytics’ data, the overall number of retained users on the network declined significantly over the past few months.
Source: Dune Analytics
The same thing happened when Uniswap entered the NFT marketplace. Initially, the hype around the launch of the marketplace attracted many users to the network.
But as time passed, the overall activity on the network began to decline. Dune Analytics data indicated that overall daily NFTs being made on the network decreased materially since the marketplace’s launch.
Realistic or not, here’s UNI’s market cap in BTC’s terms
Source: Dune Analytics
Coming to the UNI token, its price fell considerably over the past week. One of the reasons could be the declining interest from whales indicated by the falling supply held by top addresses.
Additionally, the overall velocity of the token also fell during this period.
Source: Santiment
