Unichain Network Surges with $50,000 Weekly Revenue from Priority Fees
Unichain, a new entrant in the modular blockchain sector, is making quite a name for itself with a rapidly growing, high-performance network that seems to be built on very solid fundamentals.
We are also seeing quite a bit of growth in our revenue streams, with this network bringing in around $50,000 per week. Almost all of this revenue is currently coming in from priority fees being paid by users wanting their transactions to go through more quickly.
Having set its blocktime at one second, Unichain today delivers low-latency performance when compared with many of its peers. Still, that speed is forecasted to improve dramatically with the future integration of Flashblockssub-second, 250-millisecond block intervals designed to provide even faster confirmation times. The networks roadmap continues to focus on both scalability and low-latency executionaspect ratios of an increasingly competitive Layer 2 and modular ecosystem. Indeed, Unichains next updates may see latency drop significantly as it pushes toward and begins to achieve the goals laid out in its white paper.
DEX Activity Surges as Incentives Drive Adoption
Unichains recent growth has received a substantial boost from the rapid expansion of decentralized exchange (DEX) volume on the network. The increase started in mid-April and was in time with the launch of an incentive program aimed at drawing in liquidity and traders. Since then, DEX volume on Unichain has catapulted to nearly $2 billion weekly, a stunning accomplishment considering how little memecoin action there is on the chain.
In contrast to numerous other networks that see speculative tokens drive much of their trading volume, Unichains top liquidity pools are composed primarily of high-value, blue-chip asset pairs. Fully 97% of all fees earned by liquidity providers (LPs) in those pools come from trades involving either ETH-USD or Bitcoin-denominated pairs. That signals a trading environment thats maturing and maturing fast, with far more focus on driving real, meaningful trade between legitimate, institutional-grade assets than on any trading patterns that could be described as hype-driven.
At present, the majority of the volume is coming from Uniswap v4 pools. These are very advanced, highly functional and flexible pools that let you, as a liquidity provider, perform nearly any sort of money market strategy you can imagine (in fact, if youre not into money market strategies, you probably have a good reason to steer clear of these pools). And yet, amongst these highly advanced pools, there is at least one pool that appears to be very basic. The USDC/USDT pool is operating with an almost comically low 0.003% fee.
Throughput, Reverts, and Value Accrual Mechanics
Currently, Unichain achieves a transaction throughput of 5 million gas per second (5mgas/s), with most of that activity coming from DEX trading. Although some observers have flagged the networks high transaction revert rate, a closer look reveals that this is largely a non-issue for the kind of everyday users that most networks serve. In fact, if you discount the 88% of all reverts that come from just 60 addresses (most of which are associated with bot-driven arbitrage strategies), you find that the Unichain network serves up a pretty smooth experience for its human users.
Unichain is now growing and changing the structure of its value accrual. Right now, the revenue net of the Optimism Collectives revenue share goes to Unichain Labs. But this is set to change with the launch of UVN, or Unichain Validator Network, which will enable us to share revenue with holders of our governance token, the UNI token.
Unichain seems to be carving a niche for itself in the realm of blockchain networks that are built for performance and that are friendly toward institutional players. Its secret? Focusing on three things quite resolutely: facilitating high-speed and high-volume trading; maintaining a design that ensures high throughput; and establishing a base of trading pairs that drive utilityno small achievement given that in many public markets, a high percentage of trading pairs do not seem to fulfill a useful purpose.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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