During this bear market phase in DeFi, I was thinking about Uniswap's position. A protocol that powered the DeFi Summer, today shows signs of stagnation in innovation. Its development logo was once unparalleled—major version updates every one and a half years. V1 featured AMM mechanisms, V2 introduced ERC-20 pairs, V3 brought concentrated liquidity, V4 added programmable Hooks. Each step redefined the industry.

But here lies the problem. Three years have passed since the V4 announcement, and the market still doesn't know what comes next. The mainnet launched in January 2025, but TVL has only fallen to $650 million—about 40% of V3’s. This is a big question mark.

Honestly, the idea of Hooks is powerful. Modular plugins enabling dynamic fees, limit orders, MEV protection—all possible. Previously, developers had to fork Uniswap to add these features, spreading liquidity thin. Now, this should be fundamentally solved. But adoption remains weak.

At the product level, Uniswap is making some attempts. Uniswap Application Chain launched in February, bringing over 90 protocols. CCA token auction feature has been introduced. But are these real solutions? No, they are more side businesses. Last year, key operational staff left—growth managers, COO, strategy managers—all gone. This indicates a lack of growth.

At the token level, the situation is even worse. UNI dropped 74% last year, falling below $2. Market analysts say it has no real value. Even Arca’s investment officers called it a completely meaningless token. Subsequently, Uniswap proposed implementing protocol fees in V2/V3, which would be used to repurchase UNI. Briefly, UNI rose 38% to $9, but this is not a long-term solution.

Look at the data—current daily fee income is $10-20K, annual revenue is $46 million. Lagging behind Pancakeswap, Jupiter, Lido. Uniswap has invested in NFT marketplaces, chain-agnostic gaming, but those have failed.

Overall, Uniswap’s crisis is actually a reflection of the broader DeFi crisis. Fundamental innovation has ended, the industry’s narrative is exhausted, and liquidity is fragmenting. Yet, Uniswap remains the leading DEX, with no protocol-level hacks, and user trust intact. But the question remains—will V5 come? And can it once again drive the next major market cycle?