# Uniswap V4 Trade count Methodology

## 1. Overview

Trade count is defined as the total number of swap transactions executed on Uniswap V4. The frequency of asset purchases and sales through the protocol's liquidity pools is represented by this metric. By aggregating distinct swap transactions, the overall activity and user engagement of the platform are evaluated. This metric is utilized by institutional investors to analyze protocol adoption and liquidity utilization.

## 2. Data sources

- **Blockchain events**: `Initialize` and `Swap` events from `PoolManager` contracts, combined with transaction sender data, covering Ethereum, Arbitrum, Base, Polygon, and 7 other chains

## 3. Step-by-step calculation

### Component A: Trading pool initialization

- **Purpose**: Active Uniswap V4 liquidity pools and their associated assets are identified.
- **Logic**: `Initialize` events from `PoolManager` contracts are parsed to extract the pool identifier, pool contract address, asset addresses, and hooks contract address. If either asset address is identified as a null address, it is replaced with the corresponding wrapped native asset address. Asset decimals and symbols are joined from asset metadata to facilitate downstream normalization.
- **Key fields**: `pool_id`, `account_address`, `currency0`, `currency1`, `hooks`

### Component B: Swap event extraction and filtering

- **Purpose**: Active swap transactions are captured and denylisted pools are filtered out.
- **Logic**: `Swap` events from `PoolManager` contracts are parsed to extract the transaction hash, pool identifier, sender address, fee tier, and asset swap amounts. Swap amounts are negated to align the trader-centric perspective of Uniswap V4 with the contract-centric perspective of previous protocol versions. Transactions are joined with native blockchain transaction tables to identify the transaction sender address. Pools identified in the denylist are excluded from the dataset.
- **Key fields**: `transaction_hash`, `pool_id`, `sender`, `amount0`, `amount1`, `user_address`

### Component C: Trade count aggregation

- **Purpose**: Distinct trade transactions are aggregated on a daily level.
- **Logic**: Trade events are grouped by day, chain, and product. The total trade count is calculated by counting the unique transaction hashes within each group. Missing days are zero-filled to ensure a continuous time series, and the final metrics are filtered based on chain availability.
- **Key fields**: `timestamp`, `chain_id`, `product_id`, `transaction_hash`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Number of trades executed on a decentralized exchange.

Trade count

Exchanges (DEX)

Liquidity providers deposit funds into Uniswap and receive trading fees from traders (supply-side fees).

Uniswap is a non-custodial exchange protocol built on Ethereum. Uniswap was founded by Hayden Adams and launched in 2018.

UNI tokenholders own and govern the protocol. They do not currently take a cut of the total trading fees paid by traders (revenue). Uniswap's investors include Paradigm, a16z, USV, etc.

Uniswap V4

Trade count

Trade count

Chain breakdown