• Markets
  • Crypto
  • Web3
  • Culture
  • Opinion
  • Politics
Subscribe
  • Login
  • Register
No Result
View All Result
  • Markets
  • Crypto
  • Web3
  • Culture
  • Opinion
  • Politics
No Result
View All Result
No Result
View All Result

Uniswap Crosses $1 Billion in Revenue

04/01/2022 15:21
No comments
Uniswap 2021 total revenue

Uniswap has become the first decentralized app running on the ethereum blockchain to cross $1 billion in yearly revenue.

The defi dapp is currently handling $1.28 billion in volumes a day, giving it an income of $2.5 million.

For the past year from October 2020 to October 2021, it earned in total $1.1 billion in fees as pictured above.

That makes it a Price to Earnings (P/E) ratio of about 20 based on the current fully diluted market cap of $20 billion.

Unlike in the wider tech space thus where P/Es of 100 and even 1000 can be seen, Uniswap is being valued more as a traditional old company running a slow growth but stable business.

That may be in part because the ethereum blockchain can’t quite handle more traffic without L2s, and thus it isn’t too easy to see 10x growth in usage before L2s like Starknet, zkSync or Optimism and Arbitrum take off.

It did however handle $4.1 billion in trading volumes on December 4th. That gives it a daily revenue of about $10 million, and thus we have a peak earning of $4 billion a year, or a fully diluted market cap of $80 billion, giving a top range price of $80 for Uniswap from the current $20.

One does have to consider competition, but with 60,000 trading pairs Uniswap may have significant network effects due to the first mover’s advantage.

More widely one also has to consider the industry and whether that has much room for growth, not least because a lot of these metrics are affected by the price of the token that is being exchanged.

Making valuation a very tricky business but their volumes have ranged between $500 million and $4 billion, giving it a fair price between $10 and $80.

Meaning one can halve their money or 4x it depending how the market goes, which presumably would give this an analyst rating of hodl unless they make significant progress with L2s, in which case it would be a buy.

Related Posts

Ethereum, the burning, Aug 2022

EthereumPoW to Remove EIP1559

US Bureau of Labor Statistics

Bitcoin Jumps as US Inflation Falls to 8.5%

LUSD’s Token Jumps, RAI’s Rises 50%

Infura Censors Tornado Cash Smart Contract

Load More
  • Trending
  • Comments
  • Latest
Proof of Work/Stake

Proof of Stake vs Proof of Work

ETHW's price, Aug 2022

ETHW Starts Trading at $135

Ethereum, the burning, Aug 2022

EthereumPoW to Remove EIP1559

Alireza Peyman Pak, file photo

Iran Pays with Crypto For $10 Million Import

Ethereum, the burning, Aug 2022

EthereumPoW to Remove EIP1559

US Bureau of Labor Statistics

Bitcoin Jumps as US Inflation Falls to 8.5%

RAI Spikes, Aug 2022

LUSD’s Token Jumps, RAI’s Rises 50%

Infura RPC censorship, Aug 2022

Infura Censors Tornado Cash Smart Contract

Comments

Latest News

  • EthereumPoW to Remove EIP1559
  • Bitcoin Jumps as US Inflation Falls to 8.5%
  • LUSD’s Token Jumps, RAI’s Rises 50%

About Trustnodes

Terms of Service

Privacy Policy

Our Ethics and Values

Trustnodes Newsletter

Trustnodes © 2017-2022. All Rights Fully Reserved. For any Enquiries contact@trustnodes.com RSS Feed

No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Markets
  • Crypto
  • Web3
  • Culture
  • Opinion
  • Politics

Trustnodes © 2017-2022. All Rights Fully Reserved. For any Enquiries contact@trustnodes.com RSS Feed

Welcome Back!

Login to your account below

Authenticate with MetaMask Loading...

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?