The Uniswap Foundation has released its Q1 2025 financial report, revealing a strong financial position with approximately $95 million in assets

Uniswap also commands a 67% market share among decentralized exchanges (DEXs) on Ethereum. However, its momentum faces new legal headwinds, as rival protocol Bancor has filed a patent infringement lawsuit, escalating tensions within the Automated Market Maker (AMM) space.

Stable Financial Position

As of March 31, 2025, the Uniswap Foundation has allocated $115.1 million for grants and operational activities, ensuring sustainability until January 2027. The report indicates Uniswap holds $53.4 million in cash and stablecoins, 15.8 million UNI tokens, and 257 ETH, with total assets valued at around $95 million.

Notably, Uniswap has staked 5 million UNI tokens to borrow $29 million through a financial instrument that ensures USD liquidity without significantly impacting the market, while protecting collateral and maintaining upside potential.

This financial stability aligns with Uniswap’s dominance in the Ethereum DEX market. On-chain data shows that the total volume on Ethereum DEXs over seven days is $16 billion. Uniswap accounts for over 67.6% of the market share, with a weekly trading volume of $10 billion.

Previously, as BeInCrypto reported, Uniswap surpassed $3 trillion in total trading volume, handling over $3.6 billion in daily transactions and securing 24% of global DEX volume.

This demonstrates that Uniswap is the top choice for individual traders and a trusted platform for institutions, thanks to its high liquidity and user-friendly interface. This growth also reflects the trend of investors returning to DeFi, particularly amid the strong recovery of ETH and altcoin prices in mid-2025.

Legal Challenges

After the lawsuit with the SEC, Uniswap recently faced legal challenges from Bancor, a competitor in the Automated Market Maker (AMM) space. Bancor has sued Uniswap, alleging patent infringement and claiming that Uniswap used its technology without permission.

“As innovators and inventors, protecting our intellectual property is fundamental to the health of the ecosystem. If companies like Uniswap can act unchecked without consequence, we fear it will hinder innovation across the industry to the detriment of all DeFi players.” Mark Richardson, Project Lead at Bancor, commented.

In response, Uniswap has dismissed the allegations, calling them a “costly distraction” and vowing to defend its rights. This lawsuit could impact Uniswap’s reputation and incur legal costs, but with its financial resources, the organization is well-equipped to address these challenges and continue its growth.

Despite these challenges, Uniswap continues to solidify its leadership in the DeFi space. Its 67% market share on Ethereum DEXs is a good result for the platform’s appeal. However, to maintain its position, Uniswap must effectively navigate legal issues, the launch of Unichain L2, and increasing competition from rivals like PancakeSwap and Curve Finance.