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Why The Uniswap (UNI) Token Is Almost Worthless: Researcher

In an analysis, Anders Helseth, Vice President at K33 Research, has mounted a strong case against the viability of the Uniswap (UNI) token. His analysis pivots on the intriguing dynamics of the decentralized finance (DeFi) market, fundamentally challenging the current valuation and future potential of UNI.

Helseth begins his argument with a seemingly straightforward question: “The Uniswap protocol generates significant trading fees, but will the UNI token ever capture its (fair) share?” His conclusion is emphatically negative.

Is The Uniswap (UNI) Token Worthless?

For context, UNI is a governance token for the Uniswap protocol, a decentralized exchange that earns a 0.3% fee on trades. However, as Helseth points out, the entire trading fee currently goes to liquidity providers, with UNI holders standing to gain only if governance votes permit fee dividends to UNI holders.

Even in a slow DeFi market, the fully diluted value of the UNI token is 15 times the annualized trading fees paid when using the protocol, currently around $6 billion. If the UNI token could capture all trading fees, it would arguably present an irresistible buy. However, Helseth makes a compelling argument to the contrary.

“The UNI token currently captures 0% of the 0.3% trading fee, which entirely goes to liquidity providers,” Helseth says, emphasizing the token’s current lack of intrinsic value.

The crux of his argument revolves around three players in the DeFi space: the users, the protocol (and hence UNI token), and the liquidity providers. According to Helseth, the interplay between these actors is detrimental to the UNI token’s potential for revenue generation. Helseth explains:

The entire protocol can be exactly copied within minutes at virtually no cost. This argument implies that all the power lies with the liquidity providers in the fight for trading fees.

The primary concern for users is liquidity and cost-effectiveness. If the same protocol can be replicated at a whim, users would inevitably gravitate towards the version with the most liquidity – to minimize slippage when executing trades. This dynamic significantly empowers liquidity providers who, unlike UNI holders, hold real, valuable tokens.

In addition, even though switching to another smart contract may entail some costs, these are relatively low, reinforcing the bargaining power of liquidity providers.

Concluding, Helseth states: “Given this relatively low cost of switching from the users’ perspective, we cannot conclude with anything else than that the power lies with the liquidity providers. Hence, even though the Uniswap protocol generates significant trading fees, we believe the potential for the UNI token to capture any of this revenue to be almost non-existent.”

At press time, the UNI price stood at $6.19 after being rejected at the 200-day EMA yesterday.

Uniswap UNI price

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Why This Signal Means Uniswap’s Bear Run Is Almost Over

The price of Uniswap, the largest decentralized exchange by trading volume, is down roughly 35% from Q1 2023 peaks. Even so, on-chain data from Etherscan shows that there has been a steady increase in the number of UNI holders in the past two days.

As of May 13, there were 369,646 UNI holders. Since then, the number has increased to over 370,100 as of May 26. During this time, UNI prices have remained stable but relatively high.

Uniswap Price On May 6| Source: UNIUSDT On Binance, TradingView

Based on the UNIUSDT chart, the prices have found support around $4.9. However, prices have increased by approximately 10% over the past two weeks, rising to $5.4. Although the number of UNI holders may not directly affect the prices, there is a clear correlation between the demand for UNI and the increase in token prices.

Several factors could have provided tailwinds for UNI, the governance token of Uniswap. 

Apple Jail Break

On May 23, Uniswap’s mobile wallet was released from what Uniswap Labs, the team maintaining Uniswap, said was “Apple jail.” 

With this jailbreak, users can download the Uniswap Wallet, that’s non-custodial like MetaMask. 

Through this wallet, users can buy and sell various supported cryptocurrencies. 

This announcement is bullish because as more users opt for Uniswap Wallet, the demand for the decentralized exchange could rise, increasing its dominance and stature. 

While MetaMask remains the most dominant Ethereum and Ethereum Virtual Machine (EVM) wallet enabling the storing and trading of various tokens, even using processors like PayPal, the popularity of Uniswap could see Uniswap Wallet gnaw market share. 

Presently, Uniswap Labs said their wallet could support the trading of tokens across Ethereum, Polygon, Optimism, and Arbitrum.

Uniswap To Launch On Base?

Earlier on, the Uniswap contributors proposed the deployment of the DEX v3 on Coinbase’s Base. 

Among supporters of this proposal is GFX Labs, one of the largest UNI holders and supporters of Uniswap’s expansion to other chains. Recently, GFX Labs voted for the launch of the DEX on BNB Smart Chain (BSC) and MoonBeam. 

Even so, before voting starts, the proposal will undergo a “temperature check-up” to gauge community support. If there is majority support, it will proceed to the next step.

Uniswap v3 is the latest iteration of the DEX, introducing the concept of concentrated liquidity for higher capital efficiency and more return on investment (ROI) for liquidity providers. 

Base is a layer-2, open-source, and EVM-compatible platform by Coinbase, one of the largest cryptocurrency exchanges.

It is unclear whether the above-spurred demand for UNI, pushed the number of holders higher in the last week.  However, this could suggest that the project is generating interest, which may support future token prices.

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80% Of Uniswap Holders Support BNB PoS Chain For Deploying V3 Protocol

Uniswap (UNI), a decentralized protocol, is ready to roll out the third version of its platform. The protocol aims to provide a suitable platform where users can seamlessly swap ERC-20 tokens without using an order book.

For the v3 launch, the protocol carried out a ‘temperature test’ for a possible blockchain to use. The proposal was for deploying Uniswap v3 on the Binance Smart Chain (BNB) instead of the Ethereum blockchain. The proposal got the UNI community voting on its government forum using their UNI tokens.

Surprisingly, about 80% of the UNI holders supported the Uniswap v3 deployment on the BNB Chain, Ethereum’s rival. Unfortunately, this left a smaller percentage of votes for the Ethereum blockchain, making it lose the temperature check proposal.

0xPlasma Labs, a decentralized finance protocol, contributes to the proposal. According to the post on Twitter, the firm noted that the “Temperature Check” on the proposal got 20 million votes for ‘YES.’ In addition, the supporting votes came from 6,495 $UNI voters, the most significant voting numbers in the history of Uniswap’s Governance system.

0xPlasma Labs’ CEO Lists Benefits of Deploying Uniswap V3 on BNB Chain

Recently, the CEO of 0xPlasma Labs, Ilia Maksimenka, wrote a proposal for deploying the Uniswap v3 protocol. The CEO lined his argument on the benefits of deploying the new v3 protocol on the BNB Chain.

Maksimenka cited the License expiration of Uniswap as one of the reasons for choosing BNB Chain. Also, he mentioned that the chain has many packages that would help boost Uniswap’s popularity in the DeFi space. Some include high transactions, low fees, staking opportunities, cross-chain support, etc.

Also, the CEO acknowledged that Binance had acquired a global presence, being rated as the largest crypto exchange in the world. Hence, as a strong brand, using the BNB Chain will fast-forward the awareness and adoption of the v3 version globally for Uniswap.

The Proposal Gets Support

The proposal has received support from other firms and crypto participants. For example, ConsenSys, a blockchain software company behind one of Ethereum’s most important clients, is optimistic about the deployment move.

The DAO governance strategist at ConsenSys, Cameron O’Donnell, revealed the company’s stance. First, the firm noted the need for Uniswap to be agnostic in its service to users, especially in the Web3 space, even with its license expiration in April. 

Hence, O’Donnell maintained that existing and future platform users would enjoy a secured and robust platform for decentralized exchange through the BSC market. Other supporting comments came from Brian-Armstrong, CEO at Coinbase, and Modong also optimistic about the deployment of Uniswap v3 on BNB Chain.

The Plasma Finance team started its operation after the Uniswap governance community approved the proposal. The team noted that it could take five to eight weeks to deploy all the relevant Uniswap smart contracts to the BNB Chain.

The price performance of UNI was entirely on the positive lane over the past 30 days. The token gained over 28% in the past month and has shown a slight increase of 0.38% in the past seven days.

80% Of Uniswap Holders Support BNB PoS Chain For Deploying V3 protocol

But at the time of writing, UNI is trading at $6.60, indicating a drop within the past 24 hours.

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BTC, ETH, DOGE, and ADA Are Undervalued, Report Indicates

Despite the increase in market capitalization, which shows investors might be returning, big large caps are still deemed undervalued. In a tweet posted today by blockchain intelligence firm Santiment citing the MVRV Z-score, Binance coin (BNB) is the only overvalued crypto amongst tokens with a large market cap.

Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Cardano (ADA), Dogecoin (DOGE), Polygon (MATIC), Shiba Inu (SHIB), Uniswap (UNI), and Chainlink (LINK) are very much still undervalued.

Price Outlook On BTC, ETH, And Undervalued Large Caps

Santiment reported that BTC, ETH, XRP, ADA, DOGE, MATIC, SHIB, UNI, and LINK are undervalued. However, despite their deemed result, each of them was still part of the global crypto market rally or the ‘mini bull run’ seen over the past weeks.

Related Reading: Cardano Up 30% Since December As 28 New Whales Hold At least 1 Million ADA

BTC and ETH have seen more than a 10% increase in value, respectively, over the past seven days. At the time of writing, both cryptos are up 2% in the last hour, with BTC 24-hour trading volume exceeding $39 billion and ETH surpassing $6 billion.

Other large caps like XRP and ADA have also seen significant movement in price to the upside over the past weeks. With XRP up 15% in the last 14 days and ADA up 25% over the same period.

Notably, this is not ADA’s first time appearing on Santiment’s undervalued crypto list. Last month, the crypto analytics platform shared an analysis indicating that the Cardano native token was undervalued regardless of the aggressive accumulation from Sharks and Whales holding at least 100k to 10 million ADA tokens.

Memecoins, such as DOGE, and SHIB, weren’t left out of the global rally as both did 13% and 35%, respectively, over the past 14 days. MATIC, UNI, and LINK have also printed bullish trends over the past week, up by 19%, 13%, and 14%, respectively, in the past two weeks.

Binance Coin (BNB) Becomes Overvalued?

Though merely looking at it, BNB being overvalued over other large caps such as BTC and ETH might be quite unbelievable. However, BNB’s potential has proved to make the coin overvalued worthy. Late last year, following the collapse of FTX, BNB survived through an industry-wide FUD, which plummeted its value by over 10%, sending it from its hovering $300 trading price to below $250.

Despite the intimidating FUD, BNB survived through, as the token didn’t plummet much as expected. Furthermore, since the beginning of the year, BNB has chosen the bullish path surging nearly 15% in the past two weeks. BNB also rallied amid its quarterly burn, which happened on Tuesday, and has so far refused to make a movement for a retracement.

BNB price chart on TradingView

However, at the time of writing, BNB’s price is currently down 1.2% over the last 24 hours. As a result, its current market price is sitting at the $288  zone with a 24-high of $296.33 and a trading volume of $550.3 million over the same period.

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How Uniswap Was Saved From Critical Vulnerability By This Security Firm

Security firm Dedaub discovered and disclosed a critical vulnerability on the popular Ethereum decentralized exchange Uniswap. The team behind the protocol fixed the bug, and the affected components were successfully redeployed—otherwise, an attacker could have tempered with transactions to steal a user’s funds. 

Uniswap Avoids Danger And Fixes New Features

According to the security firm, the vulnerability was unintentionally implemented with the Universal Router. This component allows Uniswap users to trade ERC-20 tokens and non-fungible tokens “into a single swap router.”

In other words, Uniswap users can optimize their operations and trade multiple tokens and NFTs in a single transaction, saving time and money. This new component also allows users to transfer funds to third parties. 

When the vulnerability was in-placed, a user could send a transaction to a third party, and the latter could have gained access to the sender’s funds. Dedaub explained the following:

(…) if third-party code is invoked at any point in the transfer (which manifests itself due to composition of protocols), the code can reenter the UniversalRouter and claim any tokens temporarily in the contract (…). The attacker also needs to implement code to reenter the router (calling execute) and sweep all token amounts. The router may contain funds mid-transaction due to other actions and transfers in a complex swap.

The Universal Router hold the sender’s funds while the transaction is completed. While this happened, the funds were vulnerable, and a bad actor could drain them by calling specific commands such as “dispatch” with a “.TRANSFER” or. “.SWEEP.”

The vulnerability could have allowed a bad actor to “re-entered” a transaction using this command. Once inside, the attacker could have been able to “drain the entire amount” from the sender’s wallet. 

The security firm added the following on the “endless scenarios” where the vulnerability could have been exploited:

If untrusted code is invoked at any point in the transfer, the code can re-enter the UniversalRouter and claim any tokens already in the UniversalRouter contract. Such tokens can, for instance, exist because the user intends to later buy an NFT, or transfer tokens to a second recipient, or because the user swaps a larger amount than needed and intends to “sweep” the remainder to themselves at the end of the UniversalRouter call. And there is no shortage of scenarios in which an untrusted recipient may be called (…).

Ethereum DEX Grants $3 Million In Bug Bounty

In December 2022, Uniswap launched the Universal Router as part of their new NFT compatibility. At that time, Uniswap Labs announced a $3 million bounty program. Dedaub was granted this amount for their bug report on the new component.

The firm celebrated the reward and the fact that a bad actor never exploited the vulnerability. In addition, the security firm was “the only bug report that Uniswap acted upon.” 

2022 was a troublesome year for crypto and risk-on assets, while macroeconomic forces played against the nascent sector. Users experienced hurdles beyond declining prices as hackers and bad actors took billions from the industry. 

Uniswap UNI UNIUSDT

Data from on-chain analytics firm Chainalysis claims that bad actors have received over $26 billion in cryptocurrency from 2017 to 2021 alone. It remains to be seen if 2023 will extend or mitigate this trend. 

Uniswap UNI UNIUSDT

As of this writing, UNI’s price trades at $5.70 with sideways movement on the daily chart. 

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Uniswap Tops Other Big Crypto In Social Dominance Despite Price Drop

Uniswap (UNI) has surged in the social dominance department, peaking on December 25 at 20.46%. Uniswap is seen to win the popular vote as it topples other cryptocurrencies in the social arena.

Here’s a quick look at how it is performing:

  • UNI price drops 1.26%
  • Uniswap critical support spotted at $5.09
  • UNI dominates the crypto space in terms of social dominance

On the other hand, UNI still looks bearish, which could linger on for quite some time. According to data by CoinMarketCap, UNI price was trading at $5.07, down 5.2% in the last seven days.

The price could even slide further down if the coin fails to hold on to its current support level.

The MACD histogram has fallen below zero, which indicates an increase in the amount of pressure being exerted by sellers.

UNI Technical Indicators: Seller Aggressiveness

Uniswap’s technical indicators show that sellers are more aggressive than buyers in the coming days.

Uniswap, with the daily trading session, hinted at the formation of a descending triangle pattern. It also demonstrates a long-term bearish trend considering that the price dangles within the 100 and 200 SMA.

The upper Bollinger Band sits at $5.25, while the lower Bollinger Band is currently at $5.32, which suggests a bearish trend for Uniswap. This market pattern is seen to continue for an extended period.

On the brighter side, Uniswap’s price may increase once it successfully breaches the $5.4 level. However, if the coin barrels past the key support level, it could aggravate the losses.

Now, in order to reverse the negative sentiment, the bulls should maintain the support level and push the prices way up.

UNI Search Volume Among Traders Climb

In terms of social dominance and volume, UNI sits at 6,902 crests, which means that search volume has increased among the traders.

Traders now see the spike in social dominance as an opportunity to rake in profit from UNI. In fact, Binance funding has increased by 0.009%. However, despite the spike in investor interest, Uniswap still needs to increase in value.

In November, Uniswap rolled out an NFT aggregator as the market was bullish then. However, the tide has turned, and UNI NFTs did not seem to tickle the fancy of many investors as NFT trades have plummeted to only $7,562.

While UNI is dominating social volume and dominance, this might not go on for long, as the social volume and price seem to plunge further in the coming days.

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Uniswap Stuck In The Ground As UNI Copes With Falling Network Activity

According to Santiment, the decentralized exchange Uniswap has not experienced any kind of recovery. Santiment recently tweeted that Uniswap is one of the outliers in the active addresses measure, indicating that the DEX’s native token UNI is underperforming relative to other cryptocurrencies.

According to the data, the number of functioning IP addresses last increased when Uniswap introduced its NFT market aggregator following the acquisition of Genie, the pioneering NFT market aggregator.

Address decline may indicate investors and traders have lost interest in the exchange.

Uniswap

Negative Market Sentiment

To summarize, Uniswap’s network activity has been very unpleasant for investors on its native token. As of writing, UNI is down 2.4% with subsequent drops in the weekly, bi-weekly, and monthly timescales. This negative market sentiment can be seen on-chain.

In the time after its release in November, the volume of NFT transactions processed by Uniswap’s marketplace aggregator has dropped significantly, as reported by Dune Analytics.

Numbers show that there were only 39 recorded transactions today, down from 446 on November 30. That is a drop of 91.25%.

This contradicts what Uniswap Labs COO Mary-Catherin “MC” Lader stated to Fortune in an interview. She stated that the NFTs’ underlying technology is still in its infancy. Other proponents of the technology have utilized this reasoning.

Whether or not the NFT business is in its infancy, data indicates that it is barely alive, with few customers and sellers, as seen by large declines in trade volume and sales.

Incoming Headwinds

In addition to the UNI NFT issue, the market has yet to recover from the FTX collapse. The recent hike in interest rates by the US Federal Reserve adds to the strain.

With the big cryptocurrencies also seeing value declines, UNI’s long-term prospects may worsen. In terms of pricing, the token appears to find support in the $5.2 range. What’s interesting is that UNI has a strong correlation with Bitcoin.

This means that when Bitcoin appreciates, UNI will as well. The market will rebound as institutional interest in cryptocurrencies and digital assets in general grows. Short-term UNI bulls can benefit at the $6.5 price level.

Nonetheless, investors and traders should continue to take prudence, as further rises in interest rates by the central bank could result in market declines.

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Consultancy Uncovers Best Altcoins To Profit From FTX Collapse

Eight, a cryptocurrency consultancy founded by Michaël van de Poppe in 2018, has uncovered the best altcoins that can benefit from FTX’s demise. According to analysts, recent events are promoting a narrative that is strongly associated with decentralization.

Following the FTX news, leading hardware wallet manufacturer Trezor and Ledger reported skyrocketing and record-breaking sales. This was also accompanied by the trend of massive amounts of Bitcoin (BTC) and ETH (ETH) being withdrawn from exchanges.

As Glassnode reported, Bitcoin investors have withdrawn a historic 106,000 BTC/month to self-custody following the collapse of FTX. This only compares to only three other times: April 2020, November 2020, and June-July 2022.

Which Altcoins May Benefit From FTX Collapse?

The altcoin market is often dominated by narratives or special trends. For example, in recent months and years, “Ethereum killers” and layer 2 solutions for Ethereum have been strong trends that have given investors above-average profits.

According to Eight, the new trend for the next few months could be decentralization.

In that sense, Eight’s first pick is GMX, a decentralized spot and perpetual exchange that supports low swap fees and trading without price impact.

As the analysts note, the advantage of decentralized exchanges is that traders do not have to deposit their coins on an exchange and are therefore not exposed to the security risks of a centralized exchange.

The GMX token is ranked 87th among all cryptocurrencies and has recorded a strong price increase of about 20% over the last seven days.

In a similar vein is the second recommendation, DYDX. The platform is also a decentralized exchange platform for cryptocurrency margin trading for assets such as BTC, ETH, SOL, DOT and more.

The DYDX token currently ranks 144th by market cap and is even posting a gain of about 30% over the past seven days.

With UNI, Eight lists another decentralized exchange token that it is far from being an insider’s tip anymore. The decentralized exchange made headlines in recent days as the daily trading volume of the ETH/USD pair on Uniswap was 500 million higher than on Coinbase. Uniswap came in 2nd behind Binance.

Another interesting decentralized exchange is PancakeSwap, which is based on the BNB chain and aims to provide a faster and cheaper alternative to Ethereum. CAKE currently ranks 66th, but unlike the others, it has recorded a slight loss over the last seven days.

What Else?

Lastly, Eight recommends not only decentralized exchanges, but also decentralized wallets. Specifically, we are talking about the Trust Wallet and the SafePal app. The former acts as an intermediary, connecting different blockchains through the use of its nodes.

It has a robust mechanism for sending, receiving and storing multiple cryptocurrencies, and currently supports over a thousand crypto coins.

The TWT token was trading at $1.15 a week ago and has skyrocketed over the past week. At press time, TWT was trading at $2.14.

In conclusion, the analysts said:

These are just some of the projects that represent alternatives to trading and custody services offered by centralized exchanges and witnessed increased rate of attention and user adoption after the bankruptcy of FTX. Therefore, we suggest that you add them on your watchlist!

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Uniswap Shows Bullish Pattern As Price Fails To Break $6.8; Are Bears In Control?

  • UNI’s price shows the first sign of bounce after forming a bullish pattern as the price gets rejected into a range channel. 
  • UNI bounced off its downtrend movement as the price broke its resistance of $6.8 but failed to hold this region. 
  • The price of UNI continues in its range movement as the price gets rejected into a range and trades below the 50 Exponential Moving Average (EMA).

Uniswap (UNI), a one-time favorite of many in the crypto industry, has failed to live up to the hype it once had as its price rallied from a low of $3 to $30. The crypto market, including the big players like Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB), has had a quiet month as the prices of most altcoins have found themselves fighting for survival as they seek to defend their key support areas. The price of UNI, despite having a good start in recent weeks, formed a bullish pattern but failed to complement this structure with some rally. (Data from Binance)

Uniswap (UNI) Price Analysis On The Weekly Chart.

Uniswap has struggled to regain its bullish momentum in recent times; despite the uncertainty that has befallen the crypto space, the price of UNI hasn’t enjoyed a measure of relief after showing so much strength on the weekly chart rallying from a low of $3.5 to a high of $9.5 before facing rejection from that region. 

After the price of UNI rallied to a high of $9.5, the price has faced rejection to break higher to a region of $10, and the price has continued to struggle to stay afloat, considering how tough the crypto market has been lately.

The price of UNI dropped to a low of $5 after rejection from the high of $9.5; the price of UNI bounced from that region to a high of $6.5, where the price was rejected into a range channel. 

Weekly resistance for the price of UNI – $10.

Weekly Support for the price of UNI – $5.5.

Price Analysis Of UNI On The Daily (1D) Chart

Daily UNI Price Chart | Source: UNIUSDT On Tradingview.com

In the daily timeframe, the price of UNI continues to trade below the key resistance formed at 50 EMA after forming a cup and handle pattern but failed to complete the pattern as the price was rejected into the range. The price of $7 acts as the resistance holding the price of UNI from breaking the range and trending higher.

The price of UNI needs to break and hold above $7 for the price to trend higher to a region of $9.5-$10, which is a key supply zone for most traders. If the UNI price fails to break above this region, we could see the price retest its Support at $5.5.

Daily resistance for the UNI price – $9.5-$10.

Daily Support for the UNI price – $5.5.

Featured Image From zipmex, Charts From Tradingview

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Uniswap Coin’s Bullish Trajectory Sets UNI To Breach $7 Level – Time To Buy?

Upward trends in price charts bode well for Uniswap. CoinGecko reports that over the past 30 days, the token’s value has increased by 17.6 percent. The currency appreciated by 6.5% in value throughout the course of the week.

As of this writing, UNI is still in an uptrend, and there are indications that the bullish momentum will continue, pushing the price of UNI into or over the $7 barrier mark.

UNI’s gains are only one example of the several cryptocurrencies that took advantage of the market turmoil caused by the recent CPI report.

Is the market getting carried away with its optimism, or can UNI’s positive momentum continue to the $7 resistance level?

The Unicorn Spell

CryptoQuant reports that the token’s exchange reserve numbers are on the rise. That people are getting ready to sell again is a gloomy sign.

During the September 21st UNI rally, the coin was rejected at the $7 price resistance level, providing evidence of this phenomenon.

Currently, the momentum indicator is at 0.062. This is barely above the 0 line of neutrality. The RSI indicator currently rests at 52.61 and 50.24 correspondingly, indicating a deceleration.

Even though the token’s movement is slowing, its predominant adherence to the XABCD shape may indicate more bullishness. However, the token has met a roadblock in its quest towards the $7 price area.

The recent rejection of the token at $6.774 will present a difficulty in the coming days.

Has The Adjustment Phase Begun?

Chaikin’s money flow indicator shows that the bulls continue to control the market. At a value of 0.02, the bulls can use this to generate more momentum and eventually push the price towards $7.

However, if bears seize control of the market, the $5.993 support line is their greatest defense against a possible reversal.

Market corrections are typical for both stocks and cryptocurrencies. As a result of the rising level of foreign exchange reserves, investors and traders should be prepared for potential volatility in the next days or weeks.

UNI market cap at $4.8 billion on the daily chart | Featured image from Forkast, Chart: TradingView.com

Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.

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Uniswap (UNI) Likely To Reach $7 – If Token Overcomes This Resistance Level

Uniswap is not looking good right now. UNI, the governance token of the decentralized exchange platform bearing the same name, must be able to muster enough energy to regain momentum and hit its target. 

  • Uniswap’s key support levels are $5.7 and $5.2
  • UNI price can go as high as $7, with a push for $8 also highly possible
  • An extended bearish run is still possible if breakdown below support marker occurs

According to tracking from Coingecko, at press time, the cryptocurrency is trading at $6.20 and is currently down on intraday, weekly and monthly periods.

Over the last 24 hours, Uniswap went down by 2.8% while on a seven-day period the asset is dealing with 8.2% price decline.

Its year-to-date loss is huge, being down by 76.4% and UNI already lost 86.2% of its all-time high price of $44.92 attained last May 3, 2021.

But despite all of these negative price numbers, investors could be looking at a bull run for the 17th largest cryptocurrency in terms of market capitalization.

How UNI Can Hit The $7 Marker

Analysis from its daily timeframe chart shows the altcoin’s price has incorporated itself into an inverted head and shoulder pattern, putting itself in a good position to start a bullish rally.

Chart: TradingView

Investors need to keep their eyes open for two crucial support levels for Uniswap, $5.7 and $5.2, as they are significant points for buyers to initiate and sustain a price recovery.

With the nature of its current price pattern, UNI could be in a position to make a 10.6% jump and finally hit the $7 level.

There is an even better scenario for Uniswap, as success in buyers’ attempt to sustain the $5.66 support level and push to the $7 marker would mean accelerated surge for the digital asset all the way to $8.

Caution is still advised though, as breakdown below the $5.2 support will wash away all hopes for the aforementioned price rally and will mean extended bearish run for Uniswap.

Uniswap Labs Completes Successful Funding Round

Perhaps one key driving force for the forecasted bull rally for the cryptocurrency is the recently completed funding round of Uniswap Labs.

Motivated by its goal of broadening its offerings, the parent company of the largest decentralized exchange pulled all strings it could and raised $165 million in its Series B fund-raiser.

The round, that pushed the firm’s valuation to $1.6 billion, was led by Polychain Capital and featured loyal supporters such as a16z crypto, SV Angel, Variant and Paradigm.

Uniswap Labs, in recent months, have been very vocal about its plans to add several new offerings which include a wallet system and enabling customers to trade non-fungible tokens (NFTs) to Uniswap from different market places.

The successful funding round will certainly help the company in that department, not to mention aid in pushing UNI price to higher levels before the year ends.

UNI total market cap at $4.67 billion on the daily chart | Featured image from Inc Magazine, Chart: TradingView.com
Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.

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Uniswap Sellers Stop But RSI Develops Bearish UNI Price Divergence

Cryptocurrencies have been suffering higher volatility since the bear took control. For example, the fledgling crypto coin Bitcoin price plummeted to a low of $18,363 on Oct 13 and then reversed to $19,354 today. Unlike the other top coins creeping, Uniswap’s native token, UNI, marks higher gains. Although its price touched $5.50 when BTC plummeted on Thursday, UNI added over 14% following the day and claimed a $6.49 high.

At the time of writing, the token’s value hovers around $6.20, up by 0.96% in the last 24 hours. The Uniswap market cap also indicates a bullish trend, signifying the crypto winter started to ignore the project. Its capitalization has increased to $4.70 billion, representing a 0.24% gain.

Financial Indicators MACD Line And RSI Suggest Bearish Divergence

In line with the daily price analysis, UNI against USD presents a bullish trend ahead. The price actions form a high-low pattern which signs an uptrend for the token. As recent price moves show, investors did not miss any opportunity and connected with all swing lows. Likewise, Uniswap ended its retracement phase below $5 in the last week and now seems to find resistance above this. The expected price range for the token in October remains between $5.3 to $7.

Opposite to the positive happenings within the UNI network, the Moving Average Convergence/Divergence (MACD) line, an oscillator used to indicate market trends, currently points toward the bearish signal for the token and crosses the line. Likewise, the Relative Strength Index (RSI) shows a bearish divergence as its peak continues falling toward the 50 zone.

UNI’s price is currently trading at $6.15. | Source: UNIUSD price chart from TradingView.com
Uniswap To Deploy On zkSync For Cheaper Fee And Enhanced Security

UNI is the governance token of the decentralized exchange Uniswap, which allows users to trade and sell cryptos using smart contracts. It seems users and organizations are pushing for privacy in the sector, driving adoption and positively affecting prices. For example, on Wed, 12 October 2022, Coin Center, a think tank on cryptocurrencies, filed a suit against OFAC over restrictions against Tornado Cash, a privacy mixer (decentralized cryptocurrency tumbler). In return, almost the whole market reacted by going green as the news spread.

Notably, today’s announcement by the Uniswap platform might become a catalyst to pump the token’s price further. The Uniswap exchange has declared to build on the zkSync for enhanced privacy and security.

zkSync uses novel technology, also known as ZK Rollups, to enable faster transactions with minimum gas cost. The company decided to deploy privacy-focused layer two after completing a governance vote. Offering a minimum fee without compromising on security will attract more users and accelerate the network’s activity.

The parent company of zkSync, Matter Labs, commented that this move would onboard new users. Furthermore, the low network fee than Ethereum will make the platform more attractive. The company noted in a statement;

There’s significant value in Uniswap being available on an EVM-compatible ZK Rollup. Deploying early on zkSync helps solidify Uniswap’s place as the number one DEX and a thought leader.

Therefore, with zkSynce launch on mainnet within the next six weeks, investors’ wallets may profit from the project’s growth.  In addition, the token might enjoy resistance above $7 in the coming days, which the investors are hard to manage.

Featured image from Pixabay and chart from TradingView.com

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Uniswap Soars 14% In Last 24 Hours – Can UNI Slingshot Past $6?

Due to the increased valuation of Uniswap to $1.66 billion, UNI has gained 14.2 percent in the past day. Hayden Adams, Uniswap’s founder, has announced an important upgrade to the decentralized exchange on the company’s official blog.

As of this writing, UNI is trading at $6.28, down 8.6 percent in the last seven days, data from Coingecko show, Friday.

Polychain Capital’s most recent funding round is largely responsible for the increase in valuation. Existing investors such as Paradigm, Variant, SV Angel, and a16z crypto also took part in the Series B investment round.

The money, the article claims, will be used to strengthen the ecosystem overall, notably in terms of security.

Web3, Here It Comes

The investment round, which is the next funding round Uniswap has had in the past few years, was first disclosed back in September. Back in August of 2020, Uniswap Protocol received its initial round of funding.

By expanding their web app and developer tools, introducing NFTs, entering the mobile market, and other initiatives, Uniswap Labs hopes to make the Uniswap Protocol accessible to a wider audience.

Uniswap’s official Twitter account also informed its fans of the news. This infusion of capital will make Uniswap Protocol competitive in the DEX market, allowing it to compete with Binance and Coinbase. The improvement is made feasible by the company’s acquisition of Genie, an NFT aggregator.

Uniswap: What The Charts Indicate

According to Defillama, the protocol’s total locked-in value has increased from its current low of $4.77 billion to $4.83 billion. However, this is slightly less than the TVL peak of $5.08 billion on October 13.

At the time of publication, the token appreciated by over 9.52 percent. This rise occurred after the $7 price range for UNI was rejected. The technicals of UNI also seem excellent. The current value of Chaikin’s money flow is 0.70, indicating that bulls are in control of the market.

Image: TradingView

Momentum also suggests bullishness, which provides investors and traders strong buy signals. The current demonstration is part of a wider demonstration that began on September 21. With the token’s current positive momentum, we expect it to test the 50 Fibonacci retracement level.

Current support is located at $5.993, which has demonstrated strength by resisting the most recent decline. Investors and traders can rely on the Stoch RSI reading that indicates oversold conditions if the bears ever overcome the current bullish momentum.

UNI total market cap at $4.7 billion on the daily chart | Featured image from Forkast, Chart: TradingView.com
Disclaimer: The analysis represents the author’s personal views and should not be construed as investment advice.

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Uniswap Rally Could Be In Jeopardy, Despite UNI’s Solid Social Engagement

Uniswap (UNI) started with a bearish stride in 2022 along with Ripple and most other cryptocurrencies but it has been gaining some impressive price action as seen in the past few weeks.

  • UNI’s social engagement up by 53.62%
  • Supply of unique wallet addresses surged since September 12
  • UNI price looking bullish; up by 4.15%

According to CoinMarketCap, UNI’s price has been looking bullish and spiked by 4.15% or trading at $6.77 as of this writing.

UNI Shows Impressive Social Dominance

More so, UNI has been outperforming other cryptocurrencies when it comes to its social metrics. UNI’s social engagements have spiked by 53.62% while social mention has grown by 62.15%.

In the past couple of weeks, Uniswap is seen to gain social media dominance plus also improved in terms of development activities.

In addition, Uniswap’s weighted sentiment is positive as shown from September 28 to September 30. On the other hand, the weighted sentiment dropped immensely as witnessed on October 1.

As a consolation, the development activity of UNI has grown rapidly since last week or September 29 and has been fairly consistent ever since.

The impressive uptick in terms of development activity is said to be triggered mainly by the network’s Swap widget update.

Chart: Santiment

These continuous advancements and upgrades are said to be hinting at a bull run and attract more investors.

On the other hand, despite the recent UNI updates, it has not helped its TVL as it has been stuck on the same level since September. The thing is, even if the whales were dubious of Uniswap’s DeFi protocols, users are gaining more interest in UNI.

Meanwhile, the top wallet addresses were also seen to surge in terms of supply since September 12, especially since whale interest is very important for the token’s progress.

Uniswap Velocity Down In Last 7 Days

On the downside, UNI’s velocity is seen to drop in the past couple of days implying a reduced number of wallet addresses.

UNI price has dipped in the past two weeks as precipitated by the market turmoil triggered by the inflation happening around the world but it is seen to currently recover a bit.

Meanwhile, it is said to get even worse as predicted by many crypto analysts after the coin has dropped by as much as 72.56% over the past year.

UNI’s moving averages witnessed a bearish movement specifically at its 100-day EMA and SMA saw at $5.62 and $5.66; respectively.

Its RSI is currently at 43.66 which signifies a spike in sell action and shows that investors may potentially lose more in the coming days.

With that being said, the sentiment of analysts on Uniswap is generally negative, especially with its lack of significant utility value.

UNI total market cap at $5.17 billion on the daily chart | Source: TradingView.com

Featured image from Cryptopolitan, Chart: TradingView.com

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Uniswap (UNI) Price Struggles To Overcome $6.8 Resistance

A Uniswap (UNI) recent market downturn has forced UNI’s trading range to shrink significantly. During the bull market in July, UNI jumped by more than 60 percent in just over two days, prompting the subsequent fall.

After this price increase, the weeks that followed showed a reversal pattern known as a “head and shoulders,” which eventually led to a price decline.

The price showed significant volatility over a 16-day period, as evidenced by the market’s historical statistics. This volatility pointed to a fierce battle between bulls and bears.

Chart: TradingView.com

The bears clearly won this war, as the price of Uniswap fell by 17.30 percent, as shown in the figure.

Prior to a price reversal, the regression channel shows the declining trend even more strongly. Due to this turn of events, the cost of Uniswap has risen from $5.745.00 to $6.459.00, a price hike of 13.54 percent.

Nonetheless, the coin went through another period of volatility as price swings were driven by bulls and bears. It happened after Uniswap bulls attempted a break above the 50% Fibonacci retracement line.

Chart: TradingView.com

The bears prevailed once again in the end. The coin’s price dropped by an additional 15.54 percent after this victory. The loss of 13.54 percent in nine days was fully wiped out by the catastrophe.

Uniswap’s trend has been on the rise since the most recent market meltdown, which has brought us to our current position. But a problem occurred as a result of the movement; it narrows to a point towards the conclusion.

The leading trend line served as resistance. The Stoch RSI rating indicates that the currency experienced a single strong sell signal at this point.

Uniswap Chart: TradingView.com

This alerted Uniswap speculators and traders to the possibility of another market correction. In this predicament, UNI’s price can only move in two directions: up or down.

1 – the price will surpass the psychological resistance of $6.8 and continue to rise, and

2 – Uniswap price will not stabilize at the 50% Fibonacci retracement level before retracing.

This speculative activity prevents dealers and investors from conducting business in the area. It stands at such a vital place as any breakouts can result in big gains and losses.

As of this writing, Uniswap bulls are aiming to hold their position above the 50% Fib mark.

If the price breaks upward, it will gain speed towards the 38.20 Fibonacci level and may perhaps surpass it. If the price falls, it should not fall below the $5.87 support level.

UNI total market cap at $4.5 billion on the daily chart | Source: TradingView.com

Featured image from Somag News, Chart: TradingView.com

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Market Update: MATIC, UNI And AAVE Outperforms While Bitcoin Strugles To Hold Above $20k

The upswing in alternative currencies is outshining the top cryptocurrencies. In particular, the MATIC, UNI, and AAVE tokens are doing well, whereas the biggest currency, Bitcoin, is still fighting to keep its position above the $20,000 mark.

Polygon (MATIC) skyrocketed on July 14 — the day after it was chosen for the Walt Disney Company’s elite business development program. After this announcement, the value of a MATIC token rose 22.5% to $0.711705, the highest price in a month.

Related Reading | Avalanche Notches Solid Mid-Week Bounce – Can AVAX Sustain The Positive Noise?

It is the only blockchain network to have ever been selected by Disney. As a result, the native utility and staking token of Polygon, MATIC, recovered more strongly than most of its competing digital assets.

MATIC price is currently at $0.693640, up 9.2% over the previous 24 hours and 46.7% for the previous 14 days. According to CoinGecko statistics, the coin is down 76.4% from its ATH of December 27, 2021, which was over seven months ago. On the other hand, $2.46 billion worth of transactions has taken place in the past 24 hours, representing a huge rise of 31.46%.

While Aave (AAVE), 46 largest currency, is currently trading at $92.47 and has increased by 16.4% over the past day and by a sizable 63.4% over the past 14 days. AAVE has been climbing since it recovered from a falling support line on June 18.

Where some of the leading altcoins experience a volatile trading session, Uniswap (UNI) is up a stunning 12.4% for the day. The current Uniswap price is $7.06, with a 24-hour trading volume of $701.54 million, up by 22%.

Bitcoin is currently trading at $20,853 on the daily chart | Source: BTC/USDT chart from Tradingview.com
Bitcoin Is Retaining Its Level Of Attention

BTC gained a new level of attention at under $21,000. The cryptocurrency market is beginning to recover, as shown by BTC, which is currently up 4.3% in value and trading at $20,807.69. In addition, a new 40-year high in U.S. inflation, as measured by the Consumer Price Index (CPI), has caused the price of bitcoin to increase from its lows.

Well, there are indications that Bitcoin is stabilizing. However, after rising as high as $22,000 less than a week before reversing course, BTC is still desperately trying to hold its position above the crucial $20,000 level.

Related Reading | A Breakout Above This Level Could Help Polkadot Recover On Chart

Investors are worried that because inflation is still extremely high and the Federal Reserve is trying to combat it by raising interest rates, which reduces economic demand, it won’t be able to prevent a recession. Furthermore, an economic downturn would not be favorable for riskier investments, including Bitcoin and other cryptocurrencies.

Along with macro factors, the problems in the cryptocurrency industry itself have made the price declines worse. The state of the crypto market is already severe. The cost of bitcoin has recently come off of its worst quarter in more than ten years, but it is still trading 70.7 % below its all-time high, set in November 2021.

Featured image from Flickr, chart from Tradingview.com

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Uniswap Reports Phishing Scam, As UNI Records 10% Profit In 7 days

Uniswap (UNI) has been moving against the general sentiment in the market. As Bitcoin, Ethereum, and larger cryptocurrencies give out their last week’s gains, UNI’s price remains impervious and maintains bullish momentum.

Related Reading | TA: Ethereum Breakdown Looks like the Real Deal, $1K Is The Key

At the time of writing, Uniswap (UNI) trades at $5.7% and records a 10% profit in the past 7 days and a 32% profit over the last month. In smaller timeframes, UNI’s price has begun to weaken as it displays a 3% loss in the past day.

UNI’s price trends to the downside on the 4-hour chart. Source: UNIUSDT Tradingview

Yesterday, liquidity providers on the platform suffered millions of dollars in losses as a result of a phishing scam. Via its official Twitter handle, Uniswap Labs confirmed the attack and called it a “problem far too common in crypto today”.

The company addressed the situation as there were ongoing rumors about a potential exploit to the Uniswap v3 platform. In that sense, they confirmed the phishing attack but claimed no exploit took place.

As they explained, liquidity providers on the platform received “malicious tokens” via airdrops which pointed them to a “malicious interface”. Users fell for this phishing attack because they were promised a chance to swap the airdropped tokens for UNI. The company explained:

This generated a setApprovalForAll transaction, which, if approved by the user in their wallet, gave the attacker the ability to redeem all of the user’s Uniswap v3 LP tokens for their full underlying value.

The company explained that users must consider potential phishing attacks from all those domain names not associated with unswap.org. In response to probable future measures to be adopted to mitigate these attacks, the creator of Uniswap Hayden Adams said:

In addition to education, I think there is a ton that can be done at the UI layer (wallets and other interfaces) to protect users. Example: by default, hide any unknown token with a URL in the name.

Why Uniswap Is Moving Against The Trend

Despite the attacks, the sentiment in the crypto market, and the UNI tokens entering the market, UNI’s price was able to maintain its weekly and monthly gains. The persistent bullish price action could be driven by a series of partnerships and acquisitions.

Uniswap Labs announced the purchase of non-fungible token (NFT) marketplace aggregator Genie. This will enable the platform to offer trading services for these digital assets.

In addition, developers will be able to leverage a new API to build applications on Uniswap and offer ERC-20, NFTs, and cryptocurrency trading. Thus, making the protocol a “comprehensive platform for users and builders in Web3.

Related Reading | Back Into Crab Mode, Bitcoin Bullish Potential Capped For The Coming Months?

The acquisition included a future USDC airdrop to all users that traded in the platform before April 15, 2022, and GENIE NFT holders. This has potentially boosted UNI’s trading volume and demand which provided the token with more resilience against the persistent bearish price action across the crypto market.