The Uniswap Token Is Now the 8th Most Popular Cryptocurrency

By Austin Reihl | Cyberfeed | 17 Mar 2021


The rise of the world’s most popular decentralized exchange (DEX) Uniswap (UNI) has been turning heads in the decentralized finance (DeFi) market. The UNI token traded at $34.00 with a daily trading volume of $1.5 billion and saw a rise up to 45.7% for the week, with the UNI price having surged over 600% this year to date.

 

As rumors and hype continues to build around the anticipated UNI-V3 upgrade, Uniswap has found its place in the top 10 cryptocurrencies list, with the industry-standard of DEXs currently with a total value of over $3.5 billion.

 

UNI-V3 Crypto Twitter Hype

 

UNI founder and creator Hayden Adams took to Twitter last month regarding the launch of UNI-V3, which is planned for sometime this year, although there is still no official word on the launch date for the upgraded protocol.

 

“2019: Uniswap V1 proved AMMs compete with traditional exchanges. 2020: Uniswap V2 will prove AMMs can do things traditional exchanges cannot. 2021: Uniswap V3 will face slippage and capital efficiency head on to prove AMMs can outcompete traditional exchanges on all fronts” – Hayden Adams (@haydenzadams) February 14, 2020 via Twitter.

 

The second Tweet regarding UNI-V3 was on February 15, where Adams stated, “Uniswap V3 will face slippage and capital efficiency head on to prove AMMs can outcompete traditional exchanges on all fronts.”

 

Ethereum’s Improvement Proposal

 

The latest announcement of the EIP-1559 implementation on the Ethereum (ETH) network is positive news for Uniswap and has temporarily eased gas fee worries by standardizing the fee structure.

 

When implemented, the EIP-1559 upgrade will reduce the arbitrary nature of transacting on the network and make ETH deflationary. Since EIP-1559 will lower transaction fees drastically, this should greatly benefit not only Uniswap but other DEXs built on the ETH blockchain, too. Ethereum’s EIP-1559 upgrade proposal is finalized and scheduled for inclusion in the London hard-fork this July.

 

Next Stop: $50?

 

Now that the DeFi token has entered price discovery mode, blockchain activity suggests it is ready for another significant uptick – the number of large UNI transactions on the network has risen by a whopping 218% in the past two days. This sudden uptrend of transactions (worth more than $100,000) shows that high net worth investors and whales are interested in UNI at current price levels.

 

As well, the number of new UNI addresses created daily is up 64% during this timeframe. Continuous expansion of the network over time is a metric reflective of overall user adoption – another positive sign.

 

Finally, users expect solved inefficiencies regarding slippage currently experienced UNI’s present iteration with the introduction of UNI-V3 and for the upgrade to feature liquidity-mining pools and reduced gas fees. Alongside these expectations, and with DeFi enthusiasts eagerly awaiting an official announcement of the UNI-V3 full-upgrade plan, analysts anticipate that UNI will hit the top five most valuable cryptos in terms of market cap, with a price target of $50 by the end of this year.

 

Closing Thoughts

 

The UNI price soared nearly 60% to the upside the past few days, likely due to the immense hype surrounding Uniswap creator Hayden Adams’ tweets regarding UNI-V3 and the Ethereum EIP-1559 upgrade announcement.

 

In addition to the overall bullish sentiment of the market spanning the DeFi space as a whole, the previously mentioned factors undoubtedly played a vital role in the tremendous upswing of the UNI token we have recently witnessed. It’s safe to say that if FOMO hasn’t yet been a factor in the Uniswap token’s price appreciation, it surely will be if the bulls continue their dominant presence over the bears.

 

However, only time will tell how the bull-market ultimately plays out and for how long. One thing is for sure, though: we are definitely in an alt-coin season bull market, and there is likely still plenty more action to come.

How do you rate this article?


108

0

Austin Reihl
Austin Reihl

Author. Creator. Musician.


Cyberfeed
Cyberfeed

The #1 cryptocurrency news feed.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.