During the year 2020, Decentralized Finance (DeFi) became a popular topic in the bitcoin market. Many DeFi protocols were born during the "DeFi summer" period, which generated significant gains to many traders. Uniswap was used to complete the vast majority of trades in DeFi.
On the Ethereum blockchain, Uniswap is an automated market maker, often known as a decentralized exchange. A user does not need to sign up, create a profile, or present identity credentials to transact on a decentralized exchange, unlike a centralized exchange. The user's funds remain in their wallet, and Uniswap is only used to exchange tokens.
As the DeFi sector on Ethereum expanded in size, Uniswap gained in prominence. Investors who provided liquidity using Uniswap's platform were rewarded in most newly released DeFi protocols.
Aside from that, Uniswap allowed users to trade the most popular DeFi tokens at the moment. As a result, traders came to Uniswap in droves to get their hands on the most profitable project tokens, boosting the exchange's user base, trading volume, and popularity.
The UNI Airdrop Worth $12,000
Uniswap didn't have its own exchange token at first. Uniswap, on the other hand, performed an airdrop of their newly created UNI token to all users who had previously executed a trade on their platform on September 16, 2020. Each user earned at least 400 UNI, which is currently valued at over $12,000!
UNI's price rose to an all-time high of $8 before plummeting to below $2 before soaring to $44 during the first bull run of 2021. UNI is presently trading at roughly $30, after being down over 80% from its all-time high, indicating a strong bullish trend.
Uniswap, one of the most popular DeFi programs, has just released Version 3. Liquidity providers now have a more complex technique to design their strategy and earn a higher profit than previously with this edition.
In Uniswap governance, the UNI token is used to accept ideas. Though participation in the governance process necessitates a high number of UNI tokens, smaller investors hold on to their UNI with the expectation that the platform will keep growing and improve in value.
Time to Buy UNI?
The cryptocurrency market is now on a bullish trend. It suggests that now is probably a good time to go long on any token. That said, UNI can be examined closely in order to determine a reasonable entrance price.
UNI's price has been rising in a bullish trend since late July, when it rallied off a support level at $16. However, it is currently encountering resistance near $28.
It is preferable to wait for a response from this price region. A significant break over $28 can imply a long position in UNI, while a rejection of lower levels can signal a short position.
BigoMex is a platform that allows you to create long or short UNI positions. It is one of the newest coins available for contract trading on BigoMex. With a 2 USDT minimum margin, you can apply leverage ranging from 10x to 50x.
Traders with tiny accounts can easily trade UNI with BigoMex. Given that the DeFi sector is entering a new period of expansion, and Uniswap being one of the most popular DeFi protocols, now is a critical time to watch how UNI will evolve.