Uniswap v4 TVL Surpasses $1 Billion Doubling in 21 Days Driven by Hooks

Uniswap v4 has reached a pivotal milestone, surpassing $1 billion in Total Value Locked (TVL) and accumulating over $110 billion in cumulative trading volume since its launch [1]. This growth, driven by Unichain and Ethereum, highlights the protocol’s evolving role in decentralized finance (DeFi). The TVL surge—doubling in 21 days—reflects rapid adoption of Uniswap v4’s customizable “Hooks,” which allow users to tailor liquidity pools with advanced parameters. This innovation outpaces the 45-day timeline for Uniswap v3 to achieve a similar TVL threshold [1].

The protocol’s success is underscored by standout performers like Bunni, which has generated over $1 billion in trading volume through yield-optimizing pools. Bunni leverages rehypothecation and auto-compounding strategies, while its integration with Polkadot and Ethereum bridges enhances cross-chain liquidity. In contrast, EulerSwap, another platform exceeding $1 billion in volume, shows limited TVL growth and social engagement, illustrating the fragmented competitive landscape within Uniswap v4’s ecosystem [1].

Analysts suggest that Uniswap v4’s AI-driven liquidity strategies could amplify capital efficiency and reduce impermanent loss risks, further boosting TVL. However, challenges persist, including rising fee competition and market volatility. If Uniswap v4 addresses these issues, some experts forecast it could reach $2 billion TVL by August 2025 [1].

The milestone underscores broader DeFi trends, such as the shift toward permissionless infrastructure and user-centric design. Institutional interest, driven by transparent governance and auditable smart contracts, has grown alongside retail adoption. Yet, sustaining TVL growth requires innovation in cross-chain interoperability and token offerings.

Source: [1] [titleUniswap v4 Hits $1 Billion TVL Milestone, Redefining DeFi Landscape] [urlhttps://coinmarketcap.com/community/articles/6885e12b539d75071612e89e/]