Uniswap

<ul><li>Kaiko Research suggests Uniswap&#39;s V3 liquidity could hit $1 trillion.</li><li>Just-in-time liquidity strategies are notably propelling the volume and income.</li><li>Top wallets show a preference for ETH over USDC, boosting LP profits.</li></ul>According to a<a href="https://research.kaiko.com/insights/jit-2" rel="noopener noreferrer nofollow"> recent</a> analysis by Kaiko, a research firm specializing in the blockchain economy, the liquidity of Uniswap&#39;s Version 3 (V3) platform could be poised to reach an astonishing $1 trillion. Currently, at $75 billion, this forecast hinges on the implementation and success of Just-In-Time (JIT) liquidity strategies and the platform&#39;s growing affinity for Ethereum (ETH) over the USD Coin (USDC).The JIT liquidity strategy is a particular approach to liquidity provision in Automated Market Makers (AMMs) such as Uniswap. In this strategy, Liquidity Providers (LPs) create and liquidate a concentrated position just before and after a swap. This allows LPs to maximize their returns while minimizing exposure to price fluctuations. The <a href="https://research.kaiko.com/insights/jit-2" rel="noopener noreferrer nofollow">report</a> noted that JIT transactions in the Wrapped Ethereum (WETH)-USDC pool were significantly larger than standard transactions, often exceeding $10 million.Another interesting observation from Kaiko&#39;s <a href="https://twitter.com/CryptoAmb/status/1702601901626298371" rel="noopener noreferrer nofollow">report </a>is the preference of top wallet holders for ETH over USDC. By choosing to operate during periods when the price of ETH is declining, these liquidity providers are increasing their holdings of the more volatile but potentially more rewarding ETH, as opposed to the stable USDC. This strategy has increased profits for LPs and fueled the notion that Uniswap&#39;s V3 liquidity could witness exponential growth.Read full article at <a href="https://cryptotale.org/will-uniswaps-v3-liquidity-skyrocket-to-a-staggering-1-trillion/" rel="noopener noreferrer nofollow">CryptoTale.</a>

Will Uniswap's V3 Liquidity Skyrocket to a Staggering $1 Trillion?

CryptoTale

Other articles published on Sep 15, 2023

Former Deutsche Bank broker to plead guilty to crypto fraud: Bloomberg

Rabbit Rush is LIVE!

Top Trader Spots Worrying Indicator for Ethereum as $13B Flows Out

Early Bitcoin Investors Turn $100 into $3m And Bitcoin BSC Could Do The Same, Raises $2m But Sell...

Bullish Indicators Stack Up for Bitcoin (BTC) Ahead of a Potential Q4 Rally: This Pattern Suggest...

Stoner Cats NFTs Charged by the SEC as Unregistered Securities

Join our free newsletter for daily crypto updates!