Uniswap, the decentralized cryptocurrency exchange, has enjoyed significant growth in recent years. A recent analysis from Glassnode, an on-chain analytics firm, sheds light on the distribution of trading activity between bots and human traders on the Uniswap DEX.

Glassnode’s latest weekly report highlights the underlying metrics related to Uniswap, with a focus on the distribution of trading volume among various trader types. The report separates the DEX’s trading volume for humans and bots, specifically Arbitrage and Sandwich bots.

The data illustrates the changing landscape of Uniswap trading. Around the start of the year, Arbitrage bots accounted for 20% of the trading volume, but they have since declined to 10%. Conversely, human traders have witnessed a rise and currently hold nearly 30% of the trading volume.

Sandwich bots have consistently held the majority of volume throughout the year; however, their share has declined to approximately 60% as human traders expand their influence. Thus, bots contribute to around 70% of the overall trading volume on the Uniswap DEX.

While trading volume serves as a measure of trading activity, it may not be the most accurate metric due to varying transaction numbers made by different types of bots during a single trading action. Consequently, Glassnode analyzed the pure number of trades from each trader type.

This examination reveals that although bots still outweigh human traders, the difference in their dominances is significantly lesser. The combination of Arbitrage and Sandwich bots continues to exert dominance, underscoring the prevalence of automation in Uniswap trading.

Uniswap distinguishes itself as a decentralized exchange, operating through smart contracts that automatically execute trades when predetermined conditions are met. Users who hold the governance token, UNI, can actively partake in decision-making on the platform, enhancing its decentralized nature.

Uniswap’s code is open source, allowing users to view and replicate it. However, Uniswap V4, the latest version, includes a license that restricts commercial or production use before a four-year period elapses. This licensing approach has garnered some criticism within the open-source community.

As of the latest data, the price of the Uniswap governance token, UNI, stands at approximately $6.4, marking a 12% increase over the past week.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.