Uniswap becomes the first DApp on Ethereum to surpass $1 billion in annual revenue

On the 4th, Uniswap became the first DApp running on the Ethereum blockchain with an annual revenue of more than $1 billion.

Data shows that the DeFi DApp currently handles $1.28 billion in daily transaction volume and generates $2.5 million in revenue. From October 2020 to October 2021, Uniswap earned a total of $1.1 billion in fees. At its current fully diluted market capitalization of $20 billion, the company trades at about 20 times earnings.

Unlike in the broader tech industry, where P/E ratios can reach 100 or even 1,000 times, Uniswap is valued more like a traditional old company with slow but steady business growth.

Part of the reason may be that the Ethereum blockchain can't handle more traffic without L2, so it's hard for the Ethereum blockchain to grow 10x in usage before L2s like Starknet, zkSync, Optimism, and Arbitrum take off . However, on December 4, Uniswap did process $4.1 billion in trading volume. This means that its daily revenue is about $10 million, so its peak earnings for the year can be extrapolated to $4 billion, or a fully diluted market capitalization of $80 billion, which means that Uniswap's maximum pricing range will be from the current 20 The dollar rose to $80.