Unichain Overtakes Ethereum on Uniswap v4 – May 9, 2025: Layer-2 Dominance Grows with 75% Market Share Surge
Key Takeaways
- Unichain now leads Uniswap v4 with over 75% of transaction volume, surpassing Ethereum
- Ethereum’s share has dropped below 20% on Uniswap v4, though it remains dominant on Uniswap v3
- A $45 million incentive program and ultra-low fees on Unichain have fueled user migration
- Unichain processes transactions 95% cheaper than Ethereum, with 1-second blocks and sub-second latency in the pipeline
Unichain Emerges as the Top Chain for Uniswap v4
In a major shakeup within the decentralized finance landscape, Unichain has officially overtaken Ethereum as the leading chain powering Uniswap v4, according to on-chain analytics from Dune Analytics (via Entropy Advisors).
As of May 9, 2025, Unichain holds roughly 75% of all Uniswap v4 transaction volume, while Ethereum’s share has slipped to just under 20%. This dramatic reversal marks a defining moment in the ongoing Layer-2 vs. Layer-1 narrative, signaling growing traction for purpose-built scaling solutions.
Ethereum Still Dominates Uniswap v3
Despite its declining role on Uniswap v4, Ethereum remains the dominant network for Uniswap v3, where most end users still concentrate their trading volume. Uniswap v3’s architecture, mature liquidity pools, and broad wallet integrations continue to favor the original Ethereum mainnet, at least for now.
However, the trajectory of Uniswap v4 tells a different story — one where speed, cost efficiency, and flexibility are reshaping user preference.
Uniswap v4 Powers Forward on Layer-2
Uniswap v4, which officially launched in January 2025, introduces groundbreaking features such as:
- Hooks for custom on-chain code execution
- Dynamic fee structures
- Significant gas savings
- Native ETH support (no wrapping required)
These features are tailor-made for performance-focused environments like Unichain, which does not support Uniswap v3 by default, making it the flagship chain for v4’s next-gen functionality.
$45 Million Liquidity Incentives Spark On-Chain Activity
One of the biggest catalysts behind Unichain’s explosive rise has been its $45 million liquidity incentive program. This campaign has dramatically boosted both active user counts and total value locked (TVL), helping to cement Unichain as a serious contender among Layer-2 ecosystems.
According to DeFiLlama, Unichain now ranks as the third-largest Layer 2 rollup by TVL, boasting $800 million locked across DeFi protocols.
Unichain’s Tech Stack: Optimism-Powered and Ultra-Fast
Built on the Optimism Superchain, Unichain’s architecture is engineered for high throughput and low latency:
- 95% lower transaction fees than Ethereum L1
- 1-second block times
- Upcoming 250ms sub-blocks for near-instant trade finality
These features position Unichain as an ideal execution layer for DeFi, especially for high-frequency trading and DEX use cases where every millisecond counts.
Final Thoughts
With transaction volume surging, incentives attracting liquidity, and developers migrating toward more flexible infrastructure, Unichain is rapidly establishing itself as the new home of Uniswap v4.
As Ethereum continues to dominate v3 and broader DeFi in many ways, the writing on the wall is clear — the future of on-chain trading is heading toward fast, affordable, and composable Layer 2s, and Unichain has taken a major lead in that race.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
