Uniswap V3 is one of the most successful decentralized exchanges for digital cryptocurrencies. The latest version of the Uniswap (V3) introduces a number of new features, notably the concentrated liquidity that allows the liquidity providers to add liquidity within a specific price range. In this paper, we analyze the effect of concentrated liquidity on the return of the liquidity providers and present an approximation for the expected fees and the impermanent loss of a liquidity provider. First, we provide analytical results and then verify them using simulations.