Uniswap Price Archives

26th April 2024

Uniswap On Arbitrum Nears $150 Billion In Swap Volume

Uniswap, one of the world’s largest decentralized exchanges (DEX) by total value locked (TVL), is approaching a major milestone on Arbitrum, the largest layer-2 by TVL on Ethereum.

According to data from Dune Analytics shared by Uniswap Labs, Uniswap on Arbitrum is on the cusp of surpassing a staggering $150 billion in total swap volume.

Riding The DeFi Boom

As of April 25, Uniswap had facilitated over $146 billion in cumulative swap volume on Arbitrum alone. The number has gradually increased over the past three years since June 2021, when it was deployed on Arbitrum, looking at on-chain data.

Uniswap swap volume on Arbitrum | Source: Dune Analytics

By August 2021, Uniswap was processing less than $5,000 in swap volume. After that, they steadily picked up momentum throughout the crypto bear run of 2022. Notably, a sharp uptick from October 2023 coincided with the start of the crypto boom that eventually propelled Ethereum to over $4,000 in Q1 2024.

The rising swap volume on Arbitrum reflects the increasing preference for Decentralized Finance (DeFi) solutions. As Uniswap on Arbitrum nears $150 billion, more users are increasingly turning to the popular DEX to trade, all without giving up control of their assets.

The surging popularity of Uniswap on Arbitrum can be partly attributed to significantly lower transaction fees compared to the Ethereum mainnet.

Through Arbitrum, the optimistic roll-up solution, swappers enjoy low transaction fees. They can also trade from a scalable environment secured by the Ethereum mainnet.

Ethereum developers recently implemented Dencun, introducing a new transaction format called “blobs.” Because of this, layer-2 solutions can store large chunks of data off-chain, reducing the mainnet bloat. Subsequently, fees have been lowered, drastically enhancing the user experience for Arbitrum and other layer-2 users like Base and Optimism.

Uniswap V4 And United States Wells Notice

Following Dencun’s activation, Uniswap Labs plans to deploy v4. This iteration introduces features like Hooks that developers say will make the DEX even more efficient and flexible. The launch is set for this year.

Though Uniswap V4 is huge for the DEX and DeFi as a whole, the United States Securities and Exchange Commission (SEC) ‘s decision to issue a Wells notice is a setback.

The regulator intends to sue. However, the founder, Hayden Adams, responded in a post on X that they are ready to fight.

4th March 2024

Uniswap Founder: Dapps Will Soon Handle Gas Fees On Behalf Of Clients

In comments likely to resonate with crypto fans, Hayden Adams, the founder of Uniswap, a leading decentralized exchange (DEX), predicts that network fees will eventually become a background expense for users, much like server costs are today for top centralized applications running on Amazon Web Service and other platforms.

Gas Fees Is A Major Pain Point, Mass Migration To Solana, Layer-2 Platforms

Taking to X, Adams envisioned a future where decentralized applications (dapps) seamlessly cover network fees on behalf of users. This approach, the inventor adds, aligns with how server costs are currently handled in the current setup, especially among operators of common applications like X or Facebook.

Server costs are often considered a hidden expense in the overall business model. However, this can cost millions of dollars monthly, depending on the app’s popularity.

Presently, the dream of low-fee transactions remains out of reach for some blockchains, particularly Ethereum, the dominant platform for smart contracts. Ethereum is a legacy blockchain that recently shifted from a proof-of-work to proof-of-stake consensus.

However, while this was a major shift, the network still struggles with scaling challenges. At optimum, Ethereum can only process 15 transactions every second. Comparing this with current demand only means “gas fees” must be high to incentivize the validator to include transactions in the next block.

This high “gas fee” continues to be a major pain point, leading some projects to migrate to alternative networks with faster transaction speeds and lower fees. Solana, a high-throughput blockchain, and layer-2 scaling solutions like Arbitrum have emerged as popular destinations for these migrating projects. This trend is particularly evident with the recent surge of meme coins like BONK and WIF, which have seen significant growth on Solana.

Unlike Ethereum, Solana and layer-2 platforms relying on Ethereum for security boast higher throughput and negligible gas fees. Accordingly, more meme coin projects are launching on these networks. Here, users can transact without considering the implication of gas fees. In recent weeks, top meme coins, besides PepeCoin (PEPE) or Dogecoin (DOGE), have been launching on Solana.

Ethereum Is Working On Scaling

Ethereum will implement the Dencun Upgrade in mid-March to combat its scaling woes. The update aims to reduce costs for users interacting with layer-2 solutions significantly. However, this upgrade is just one of the many Ethereum developers plan to implement over time.

Eventually, the proof-of-stake network aims to scale processing speeds, allowing it to execute millions of transactions every second through innovations like Sharding.

Uniswap total value locked | Source: DefiLlama

Uniswap continues to lead in popularity, looking at assets under management. So far, Uniswap developers have deployed its solution across other blockchains and layer-2 options, including Arbitrum and the BNB Chain.

23rd February 2024

Uniswap Foundation Unveils Major Upgrade Plan, UNI Price Skyrockets 52%

Uniswap (UNI), one of the industry’s largest decentralized cryptocurrency exchanges (DEXs), has set the stage for a major shift in its ecosystem with a proposed upgrade that could have significant implications for UNI token holders.

The upgrade aims to bolster governance participation, enhance resilience, and reward token holders for active engagement within the Uniswap ecosystem.

Uniswap Takes Big Leap In Governance

Uniswap Foundation (UF) Lead Developer Erin Koen, while expressing his enthusiasm, has suggested that it has been the “biggest week in Uniswap Protocol Governance” and revealed a major upgrade proposal for the system.

At the heart of the proposed upgrade lies a fee mechanism designed to reward UNI token holders who stake and delegate their tokens. As announced, by actively participating in the governance process, token holders can earn additional rewards in the form of protocol fees.

In addition to the enhanced rewards, the proposed upgrade seeks to fortify Uniswap Governance, making it “more resilient and decentralized.”

According to Koen, by increasing the number of actively involved token holders, the governance structure becomes more robust, ensuring that decisions align with the collective interests of the UNI community.

The proposed upgrade maintains governance control over core parameters such as fee-charged pools and fee magnitude. Token holders will collectively decide on these critical aspects, allowing for flexibility and adaptability in response to market dynamics.

Beyond the immediate benefits, the proposed upgrade holds the potential for long-term value appreciation of the UNI token. By incentivizing participation and aligning token holders’ interests with the ecosystem’s success, Uniswap aims to foster organic growth and adoption.

Assuming a successful on-chain vote, the community will have the option to activate fees. Gauntlet, a trusted entity, is reportedly preparing a proposed roll-out process that will be shared on the forum.

Only after completing this separate governance process will fees be collected and distributed according to the adopted contracts. Koen further noted:

We’re excited to invigorate governance – incentivizing not only delegation but thoughtful and active delegation – by tying delegation to protocol fees. Specifically, we believe UNI token holders will be incentivized to choose delegates whose votes and engagement with the protocol will lead to the Protocol’s growth and success. If this proposal succeeds we believe we will see an influx of new delegations.

UNI Records 23-Month High

As these developments unfold, considerable excitement has emerged around the Uniswap protocol. Notably, a cryptocurrency investor named “Virtual Bacon” expressed enthusiasm, stating, “Uniswap finally proposes to share revenue with UNI token stakers. Chart exploding on this ‘proposal’ which hasn’t passed yet.”

Within 24 hours, the UNI token witnessed a surge of over 52%, signaling the market’s anticipation of the potential benefits this upgrade could offer token holders.

Uniswap

Currently, the UNI token is trading at $11.29. However, with the unveiling of the upgrade proposal, the token quickly surged to the $12.50 level, reaching its highest point in 23 months.

The gains over longer time frames have also experienced a dramatic surge. Over the past fourteen days, the UNI token has seen an impressive increase of 73%. Similarly, the token’s value has soared by 94% in the last thirty days.

Overall, should the proposed upgrade be approved and implemented, Uniswap will reinforce its position as a leading DEX and establish a framework that empowers token holders and fosters the continued growth and success of the Uniswap protocol.

Featured image from Shutterstock, chart from TradingView.com

21st February 2024

Uniswap Expands Reach: Deploys v2 Protocol On Six New Chains Including Arbitrum And Polygon

Uniswap (UNI), one of the largest decentralized cryptocurrency exchanges (DEX) by trading volume, has made an important announcement regarding deploying its v2 protocol on six additional chains.

The chains on which the v2 protocol has been deployed include Arbitrum (ARB), Polygon (MATIC), Optimism (OP), Base, Binance Smart Chain (BSC), and Avalanche (AVAX).

Uniswap Widens v2 Protocol Deployment

According to a recent post on X (formerly Twitter) by Uniswap Labs, the software product developer working on the protocol, the decision to deploy the v2 protocol on more chains is primarily driven by the desire to simplify the experience for Liquidity Providers (LPs).

While the protocol’s v3 offers advanced features tailored for active liquidity providers, the development team believes the v2 protocol offers a more “straightforward approach.”

By default, v2 pools cover the entire price range, reducing the need for upfront decisions and minimizing the active involvement of liquidity providers. This simplification streamlines the process and makes it more accessible to a broader range of users, according to the announcement.

Another benefit of using the v2 protocol on multiple chains, according to Uniswap Labs, is its cost efficiency. Creating pools on v2 is more gas efficient than other versions, resulting in lower gas costs to add liquidity.

This cost reduction can be translated into savings for users, making swaps on the platform “incredibly affordable.” In addition, the use of v2 on Layer 2 scaling solutions significantly reduces the risk of frontrunning and manipulative practices known as Miner Extractable Value (MEV).

Ultimately, by offering an official v2 deployment directly accessible through the Uniswap interface, the developers suggest that users can be assured of a safe and secure environment for their swaps.

UNI Price Dip, Platform Metrics Remain Solid

Despite the recent developments that could attract investors’ attention and drive broader adoption of the Uniswap protocol, the exchange’s native token, UNI, is currently undergoing a significant correction in line with the overall market trend.

Currently, UNI is trading at $7.22, representing a 4.4% price drop in the past 24 hours and a 1.1% decline in the last trading hour. However, it’s worth noting that UNI has been one of the better-performing tokens in the market, with price increases of 14.7% and 16.8% in the past fourteen and thirty days, respectively.

Uniswap

Furthermore, according to data from Token Terminal, the Uniswap ecosystem continues to exhibit substantial growth in key metrics.

The fully diluted market capitalization of Uniswap stands at $7.56 billion, reflecting the total value of all tokens if they were fully in circulation. This figure has experienced a notable increase of 18.4% over the past month.

In contrast, the circulating market capitalization, which considers the currently circulating tokens, is valued at $6.94 billion, indicating a 19.9% increase over the same period.

Uniswap

Despite the overall surge in market capitalization, the trading volume of the UNI token has experienced a significant decline of 69.3% over the past 30 days, amounting to $2.79 billion.

The total value locked (TVL), a measure of the value of assets locked within Uniswap’s smart contracts, has also experienced a 14.4% increase, reaching $4.76 billion.

Featured image from Shutterstock, chart from TradingView.com

15th February 2024

Uniswap V4 Catalyst: UNI Token Primed For Growth As New Chain Launch Loom

Uniswap, one of the world’s largest decentralized exchanges (DEX), is poised for significant growth with the upcoming launch of its V4 upgrade. This anticipated update will introduce custom Automated Market Maker (AMM) functionality directly on top of Uniswap, eliminating the need for separate AMM designs.

In addition, Uniswap’s governance token, UNI, has seen notable growth, with a 6.8% increase in the last 24 hours and an 8% increase in the previous 30 days, bringing the UNI token to $7.318.

However, while these developments favor the exchange and investors, decentralized finance (DeFi) researcher DeFi Ignas has raised concerns regarding the launch and its potential impact on critical features.

The Ultimate DeFi Liquidity Solution With Uniswap V4?

According to DeFi Ignas’ latest analysis on X (formerly Twitter), Uniswap V4 represents a significant transformation from a protocol to a platform. Like the Apple Store’s impact on the iPhone, Uniswap V4 will consolidate all pools into a single framework, reducing creation costs by 99% and enabling more cost-effective multi-pool swaps.

The introduction of the “Hooks” system is particularly noteworthy. These hooks act as plugins or extensions, allowing for customized code execution during crucial events within a pool.

The 13 available hooks enable various functionalities, including on-chain limit orders, time-weighted average market making, liquidity depositing into lending protocols, auto compound liquidity provider (LP) fees, and know-your-customer (KYC) integration.

Introducing hooks leads DeFi Ignas to believe that the launch of Uniswap V4 will allow developers to experiment and launch their protocols while leveraging Uniswap’s liquidity.

According to the researcher, this has the potential to attract even more liquidity from other decentralized exchanges and establish Uniswap as the dominant liquidity layer for all DeFi activities, from trading to lending.

Yet, while unified liquidity may benefit users by increasing market efficiency, it raises concerns about potential market concentration and stifling of competition.

UNI Token Gains Momentum

Uniswap’s V4 liquidity sourcing could concentrate liquidity within the platform, potentially making it the go-to liquidity layer for DeFi. According to DeFi Ignas, this dominance, coupled with Uniswap’s operating license that prohibits forking until 2027, raises questions about market competition and the potential impact on decentralized finance.

In addition, reports suggest that Uniswap Labs has sent takedown notices to gateways of the InterPlanetary File System (IPFS) – a decentralized and distributed protocol designed to facilitate the storage and sharing of files on a peer-to-peer network – adding another layer of concern about decentralized access and censorship resistance.

Regarding the potential upside of Uniswap V4 acting as a catalyst for the exchange’s token, the research went on to suggest that while UNI’s value “accrual” for retail investors has been relatively modest, the introduction of Uniswap V4 and its hooks opens up new possibilities.

In this sense, DeFi Ignas believes the UNI token could function as a platform/ecosystem token, benefiting from third-party decentralized applications (dApps) developed using Uniswap’s hooks, expanding the token’s use cases and potentially attracting more investors.

Additionally, there is speculation that Uniswap may solidify its dominance and liquidity by launching its chain, potentially as a layer-two (L2) solution, which could further boost the valuation of the UNI token.

Uniswap V4

As the upgrade deadline for Uniswap approaches, the impact of the exchange’s upgrade on the UNI token remains uncertain. However, there has been a noticeable growth in the token’s value over the past few weeks.

After reaching a 17-month high of $8.260 in January, the token experienced a correction but has since broken out of that pattern. As the upgrade deadline draws near, it is yet to be determined whether the token can consolidate its gains and regain previous levels.

Featured image from Shutterstock, chart from TradingView.com

6th February 2024

UNI Price Prediction – Uniswap Bulls Sight Key Bullish Move To $7

UNI price is moving higher from the $6.00 support. Uniswap is up 5% and it could rally if there is a clear move above the $6.35 resistance zone.

UNI started a fresh increase from the $5.50 support zone.
The price is trading above $6.00 and the 100 simple moving average (4 hours).
There is a key bearish trend line forming with resistance near $6.20 on the 4-hour chart of the UNI/USD pair (data source from Kraken).
The pair is showing bullish signs and might rally if it clears the $6.35 resistance.

UNI Price Aims Higher

After forming a support base above $5.65, UNI started a fresh increase. There was a decent upward move in Uniswap above the $6.00 and $6.20 resistance levels.

However, the bears were active near the $6.35 zone. A high was formed at $6.33 before there was a downside correction. The price declined below the $6.20 level. There was a move below the 23.6% Fib retracement level of the upward move from the $5.53 swing low to the $6.33 high.

It tested the $6.00 support and the 50% Fib retracement level of the upward move from the $5.53 swing low to the $6.33 high. Uniswap is rising again above the $6.10 level, outperforming Bitcoin and Ethereum.

UNI price is trading above $6.00 and the 100 simple moving average (4 hours). Immediate resistance on the upside is near the $6.20 level. There is also a key bearish trend line forming with resistance near $6.20 on the 4-hour chart of the UNI/USD pair.

Source: UNIUSD on TradingView.com

The next key resistance is near the $6.35 level. A close above the $6.35 level could open the doors for more gains in the near term. The next key resistance could be near $7.00, above which the bulls are likely to aim a test of the $7.20 level. Any more gains might send UNI toward $7.50.

Dips Supported in Uniswap?

If UNI price fails to climb above $6.20 or $6.35, it could start another downside correction. The first major support is near the $6.00 level.

The next major support is near the $5.85 level. A downside break below the $5.85 support might open the doors for a push toward $5.50.

Technical Indicators

4-Hours MACD – The MACD for UNI/USD is gaining momentum in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for UNI/USD is above the 50 level.

Major Support Levels – $6.00, $5.85 and $5.50.

Major Resistance Levels – $6.20, $6.35 and $7.00.

18th January 2024

Uniswap Unveils New Security Feature: Will It Boost UNI Demand?

Uniswap Labs, the developer of Uniswap–a decentralized exchange, has introduced a new security feature called Permit2. Taking to X on January 18, the DEX developer said this update addresses the “infinite token allowances” vulnerability that hackers can exploit. This flaw risked user funds, and the new feature is meant to resolve this concern.

Uniswap Sealing Infinite Token Allowance Risks

In crypto, especially among decentralized finance (DeFi) protocols, the “token allowance” is permission initiated by the user granting smart contracts access to tokens. From there, assets can be moved.

With this permission, it becomes possible for users to interact with dapps, chiefly protocols that utilize user funds. Some of these dapps include, for instance, decentralized exchanges like Uniswap or lending platforms like Aave or Maker.

While useful, “token allowance” can be exploited by hackers via “infinite token allowance,” where hackers can infinitely access and illegally withdraw funds from wallets, draining them as a result. Once a wallet has been compromised, it can be drained without the user’s knowledge since the compromised code already permits the hacker to move funds.

Aware of this risk, Uniswap Labs is introducing the open-source Permit2 as a solution. The tool, the DEX developer says, will give users more protection and, more importantly, control over digital assets.

A key feature of Permit2 is that users can set time limits on token approvals. Third parties can only access funds within a specific period in this arrangement.

Additionally, the tool introduces a reusable token approval for simplicity. With this feature, end users don’t have to repeatedly grant access to their funds for each transaction. On the gas-saving fronts, Uniswap Labs say Permit2 also utilizes signature-based approvals and transfers. This means the tool can reduce gas fees when users transfer tokens.

Uniswap Building, UNI Remains Under Pressure

This enhancement precedes the upcoming release of Uniswap v4, which introduces Hooks. This new feature provides developers with more flexibility and control over their applications.

Analysts say the launch of Uniswap v4 and Uniswap Labs’ continuous enhancement to improve security might cement the DEX’s position.

Uniswap TVL | Source: DeFiLlama

According to DeFiLlama data, Uniswap has managed over $4.4 billion worth of assets. Even so, UNI prices continue to struggle.

Looking at the daily chart, UNI has resistance at around $8.1 and is currently down roughly 20% from December highs. Sharp losses below $6 might trigger a sell-off, forcing the token towards $4.5 or lower.

16th January 2024

UNI Price Prediction – Uniswap Momentum Reignites, 15% Lift-off Possible

UNI price is moving higher from the $5.65 support. Uniswap is up 5% and it seems like the bulls could aim a fresh surge toward the $8.00 zone.

UNI started a fresh increase above the $6.00 and $6.20 resistance levels.
The price is trading above $6.50 and the 100 simple moving average (4 hours).
There was a break above a key bearish trend line with resistance near $6.60 on the 4-hour chart of the UNI/USD pair (data source from Kraken).
The pair is showing bullish signs and might rally if it clears the $7.25 resistance.

UNI Price Aims Higher

After forming a support base above $5.65, UNI started a fresh increase. The bulls were able to push Uniswap’s price above the $6.00 and $6.20 resistance levels, outperforming Bitcoin and Ethereum.

There was a break above a key bearish trend line with resistance near $6.60 on the 4-hour chart of the UNI/USD pair. The pair even cleared the $6.75 resistance level. It is now approaching the 50% Fib retracement level of the downward move from the $8.24 swing high to the $5.67 low.

UNI is now trading above $6.50 and the 100 simple moving average (4 hours). Immediate resistance on the upside is near the $6.95 level. The next key resistance is near the $7.250 level. It is close to the 61.8% Fib retracement level of the downward move from the $8.24 swing high to the $5.67 low.

Source: UNIUSD on TradingView.com

A close above the $7.25 level could open the doors for more gains in the near term. The next key resistance could be near $7.65, above which the bulls are likely to aim a test of the $8.00 level. Any more gains might send UNI toward $8.25.

Dips Supported in Uniswap?

If UNI price fails to climb above $6.95 or $7.25, it could correct further lower. The first major support is near the $6.60 level or the 100 simple moving average (4 hours).

The next major support is near the $6.25 level. A downside break below the $6.25 support might open the doors for a push toward $6.00.

Technical Indicators

4-Hours MACD – The MACD for UNI/USD is gaining momentum in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for UNI/USD is well above the 50 level.

Major Support Levels – $6.60, $6.25 and $6.00.

Major Resistance Levels – $6.95, $7.25 and $8.00.

13th December 2023

Is Trader Joe (JOE) A Hidden Gem Poised to Outperform Uniswap (UNI)?

In decentralized finance (DeFi) and trading, Uniswap has long reigned as a dominant force. However, a recent analysis by Lark Davis, a Bitcoin (BTC) investor, seems to suggest Trader Joe, a decentralized exchange (DEX) on Avalanche–a highly scalable blockchain and Ethereum’s competitor, could eventually emerge as a formidable competitor, even overtaking Uniswap.

Is Trader Joe Undervalued Relative To Uniswap?

In a post on X on December 12, Davis noted a discrepancy in the relative valuation between JOE and UNI, which serve as governance tokens of Uniswap and Trader Joe. Specifically, the investors noted that Trader Joe’s handles around $300 million daily trading volume on Avalanche alone.

On the other hand, Uniswap processes approximately $1.6 billion in daily volume across the Ethereum mainnet and Arbitrum, the largest layer-2 platform by total value locked (TVL) by Ethereum.

Davis further noted that despite this “small” difference in trading volume, Trader Joe’s has a market capitalization of only $238 million. Meanwhile, Uniswap has a market cap of $3.6 billion, according to CoinMarketCap data.

Even with relatively narrow average trading volume, the huge difference in market capitalization suggests that JOE is significantly undervalued relative to UNI. Accordingly, this gap will likely be narrowed in the future, with JOE appreciating versus UNI, possibly benefiting holders.

JOE Yields Versus UNI’s Governance: Which Token Has An Edge?

Davis also pointed out JOE’s potential, saying the token rewards holders with USDC yields. This is different from UNI, where holders can vote on proposals and nothing else. In the investor’s preview, besides the undervaluation, this feature could further enhance JOE’s appeal, even contributing to its upside potential.

As the crypto market recovers, Avalanche might also present additional advantages to traders and, therefore, Trader Joe. The modern blockchain is scalable and has relatively low fees regardless of network activity. With crypto prices expanding, Ethereum gas fees have been rising in tandem, discouraging mainnet transfers. This has rerouted activity to layer-2s like Arbitrum and competing platforms, including Avalanche.

When writing on December 12, DeFiLlama data shows that Trader Joe has a TVL of $149 million, of which most assets are tied to Avalanche. Only $1 million is on Ethereum. JOE has been on an uptrend, rising 170% from October 2023 lows. The token is cooling off, looking at price action on the daily chart.

28th November 2023

Whale Rapidly Stacking Uniswap, UNI To $10?

An active crypto whale has been steadily accumulating UNI, the native token to Uniswap, one of the world’s most active decentralized exchanges (DEXes). This development suggests that the address believes the token may edge higher in the coming trading days or weeks, extending gains after a sharp leg up on November 22 when UNI soared, breaking above key resistance levels.

Whale Loading Up More UNI, Back To $10?

According to recent Lookonchain data, an Ethereum address, stevu.eth, withdrew 311,302 UNI worth $1.93 million from Binance, the world’s largest crypto exchange, on November 25, pushing its total UNI holdings to 511,301 UNI, or $3.18 million.

Notably, this acquisition follows a withdrawal of 500,545 UNI ($2.42 million) from OKX on June 29, which stevu.eth deposited to Binance and OKX in August. However, the recent accumulative behavior on November 25 indicates that the whale is bullish on UNI, possibly expecting prices to float back to $10, a level last seen in August 2022.

Presently, UNI is trading within a bullish breakout formation, looking at the performance in the daily chart. Changing hands at around $6.2 when writing on November 27, the token is up approximately 60% from October lows. Even with the confidence, UNI prices have been mostly consolidating, moving horizontally at spot rates.

If buyers press on, a close above $6.6 with expanding volumes might confirm buyers of November 22. In that case, the resulting momentum might form the base for another leg up, pushing the token to August 22 highs of around $10.

Uniswap v4 Expectations

The whale’s confidence in UNI aligns with the ongoing development of Uniswap v4, an upgrade that will significantly enhance the DEX. In this update scheduled for a tentative period in 2024, Uniswap Labs, the team behind Uniswap, is introducing a concept called “hooks.”

Hooks are contracts that can be executed at various stages of a pool’s lifecycle. According to the team, Hooks, which act as more plugins, provide increased flexibility and customization for Uniswap’s liquidity pools.

As such, it would be possible for users to enable features like dynamic fees, refined market making, and even advanced orders executed on-chain.

What’s notable about Uniswap v4 is the introduction of “singleton” contract architecture. All Uniswap liquidity pools will reside inside a single, smart contract in this design change. The team notes that this can significantly reduce gas costs and, more importantly, reduce routing efficiency across numerous pools.

24th November 2023

UNI Price Prediction – After 25% Rally Uniswap Turned Attractive On Dips

UNI price rallied over 25% and climbed above $6.20. Uniswap is now consolidating gains and any dips might be attractive to the bulls in the near term.

UNI started a fresh increase above the $5.20 and $6.00 resistance levels.
The price is trading above $5.80 and the 100 simple moving average (4 hours).
There was a break above a key declining channel with resistance near $5.25 on the 4-hour chart of the UNI/USD pair (data source from Kraken).
The pair might correct lower, but the bulls could be active near the $5.60 and $5.55 levels.

UNI Price Regains Strength

After forming a support base above $4.80, UNI started a fresh surge. The bulls were able to push Uniswap’s price above the $5.25 and $5.30 resistance levels, outperforming Bitcoin and Ethereum.

There was a break above a key declining channel with resistance near $5.25 on the 4-hour chart of the UNI/USD pair. The pair pumped over 25% and even climbed above $6.20. A new multi-week high was formed near $6.60 and the price is correcting lower.

There was a move below the $6.25 level. Uniswap is now approaching the 23.6% Fib retracement level of the upward move from the $4.83 low to the $6.60 high.

UNI is still trading above $5.80 and the 100 simple moving average (4 hours). If there is a fresh increase, the price might face resistance near the $6.40 level. The next key resistance is near the $6.60 level. A close above the $6.60 level could open the doors for more gains in the near term.

Source: UNIUSD on TradingView.com

The next key resistance could be near $6.88, above which the bulls are likely to aim a test of the $7.00 level. Any more gains might send UNI toward $7.20.

Dips Supported in Uniswap?

If UNI price fails to climb above $6.40 or $6.60, it could correct further lower. The first major support is near the $6.05 level. The next major support is near the $5.70 level.

The mains support is near $5.55 or the 61.8% Fib retracement level of the upward move from the $4.83 low to the $6.60 high. A downside break below the $5.55 support might open the doors for a push toward $5.00.

Technical Indicators

4-Hours MACD – The MACD for UNI/USD is losing momentum in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for UNI/USD is well above the 50 level.

Major Support Levels – $6.05, $5.70 and $5.55.

Major Resistance Levels – $6.40, $6.60 and $7.00.

22nd November 2023

DeFi gathering momentum, Ethereum Gas Fees Rising: Why Is Uniswap (UNI) Stuck?

Decentralized finance (DeFi) activity on Ethereum is picking up momentum based mainly on how gas fees have been trending in the first three weeks of November, data from Kaiko shows. Even so, despite Uniswap (UNI) spearheading the revival, looking at the gas attributed to its activities over this period, UNI prices remain stagnant below $5.6, with bulls failing to edge higher, breaking to new 2023 highs.

Ethereum gas fees rising | Source: Kaiko

Ethereum Gas Fees Rising, DeFi Revival?

According to Kaiko, a blockchain analytics platform, the average gas fees on Ethereum hit multi-month highs last week. The platform expressly notes that the primary driver has been Uniswap’s activities, reading from the rising transaction volumes from meme coins, including GROK. This, in turn, pushed block space demand higher, increasing gas fees.

Gas fees remain volatile but generally higher in the first three weeks of November. As of November 20, Ycharts data shows that the average cost of sending a transaction stood at 45.13 Gwei, nearly 100% from November 19, when it was at 24.84 Gwei. This is a significant jump from 17.66 Gwei in late October 2023.

Gas fees and how ETH and DeFi token prices react are directly correlated as DeFi and other on-chain activities like non-fungible token (NFT) minting and trading rise; gas fees usually expand in trending markets.

Accordingly, the recent expansion in gas fees could suggest that the markets could be preparing for a leg up, and tokens of critical protocols, including Uniswap or Aave, could benefit.

DeFi TVL Rising, But Uniswap Is Stuck Below $5.6

As of writing, the total value locked (TVL) across all DeFi protocols stands at over $46.6 billion as of November 21, according to DeFiLlama. This increase is nearly $5 billion more than in early November and up from $37 billion in mid-October.

Ethereum DeFi TVL remains high | Source: DeFiLlama

Ethereum remains a choice platform for deploying DeFi apps despite the relatively gas fees pinned to mainnet scaling challenges. The pioneer smart contract blockchain manages $25.4 billion in TVL, whereas Uniswap is one of the largest protocols with $3.216 billion in TVL.

UNI prices are up 30% from mid-October when writing on November 21. However, bulls have been unable to break above the November highs at around $5.6. From the daily chart, trading volume, and thus participation, has been tapering even though prices have been edging higher.

This formation suggests that the uptrend was behind low momentum and sustainability. Technically, there could be more gains if there is a solid close above November highs with expanding volumes. In that case, UNI could expand, retesting 2023 highs of around $7.2.

18th October 2023

Uniswap Is Decentralizing: Why Are DeFi Users Worried About This Feature?

Devin Walsh, Executive Director of the Uniswap Foundation, a non-profit organization supporting the growth and decentralization of the Uniswap decentralized exchange (DEX), believes that Uniswap is decentralizing. Walsh even compares the current state of the DEX to that of Ethereum. The executive also acknowledged that the DEX’s current level of success is due to the active participation and contribution of the developer community.

Uniswap Becoming More Decentralized?

The Executive Director responded to a thread on X where Antonio Juliano, the founder of dYxX, a layer-2 DEX on Ethereum, insinuated that Uniswap is now centralized. However, it started on a decentralized path.

With centralization, Juliano added, the protocol can iterate quickly, mainly to boost revenue. On the other hand, by being more decentralized, dapps allow users to enjoy the full advantages of decentralized finance (DeFi).

Decentralization of protocols launching on public ledgers, like Ethereum or Cardano, is crucial. Usually, the community will gauge how well a dapp is decentralized by looking at, among other factors, how decisions are made and which party spearheads development.

In the case of Ethereum, Walsh pointed out that the community has taken over from where Vitalik Buterin, the co-founder; and Consensys, a technology company developing solutions for Ethereum, left. Since then, multiple developers have been refining the network and ensuring it is secure and robust to anchor dapps.

Uniswap is one of the most popular DEXes on Ethereum, looking at total value locked (TVL). DeFiLlama data shows that the exchange manages over $3 billion of assets and is primarily active on Ethereum. However, the exchange enables trustless swapping on layer-2 platforms like OP Mainnet, and public ledgers like the BNB Chain.

Uniswap TVL| Source: DeFiLlama

Preparing For Hooks And KYC?

Presently, Uniswap Labs leads the development of Uniswap. Nonetheless, Walsh said more developers are now building and contributing solutions. This, the Uniswap Foundation executive further observed, is especially considering the scheduled launch of Hooks in v4.

There is no specific timeline for when Uniswap will deploy the latest iteration, but the release of the Cancun upgrade on Ethereum will play a role. The protocol will be more customizable with Hooks since the feature acts more like a plugin.

Even so, there have been concerns that Hooks, though being developed by community developers, will be the basis for Uniswap to censor liquidity providers (LP) or traders who don’t verify by adhering to know-your-customer rules (KYC). UNI prices remain under pressure at spot rates and may break lower, registering new 2023 lows.

16th October 2023

Uniswap V4 Expected To Be Huge, But Is This Requirement A Dealbreaker?

Due to its innovation, Uniswap Labs plans to introduce Hooks in the upcoming Uniswap v4, putting the world’s leading decentralized exchange in the spotlight. According to a critic on social media platform X, the DEX is on the know-your-customer (KYC)-verification route once Hooks on Uniswap v4 are released.

Uniswap Hooks and KYC| Source: "yourfriendSOMMI" on X

Uniswap v4 Hooks Is The Beginning Of Censorship?

Sharing screenshots, the user shared insights and said the exchange brings KYC verifications on the latest iteration. At the same time, the platform plans to use the “permission required” off-chain server on UniswapX for performance enhancements.

UniswapX is an open-source solution allowing permissionless and open trading across Automated Market Makers (AMMs) and other liquidity sources. It is currently being tested on the Ethereum mainnet.

Though the community has embraced these developments, the critic said these requirements, especially the identity verification requirement on Hooks, will be available as an option before being gradually made mandatory down the line.

Uniswap v4 is being developed, and Hooks will be one of the key updates. Hooks are programmable extensions for customizing pool and trade behavior, tightly integrated with Uniswap’s core protocol.

With Hooks, it becomes easier for developers to implement other features such as dynamic fees, on-chain limit orders, and overly improved customization. In this way, it will also be possible to integrate Uniswap v4 into other protocols.

Uniswap Evolution: Building “Real” DeFi?

The DEX has constantly evolved and released new features since the first version went live in late 2018. Uniswap v1 introduced AMM, opening up decentralized finance (DeFi). This allowed liquidity providers (LPs) to be crucial to market making.

In Uniswap v3, the exchange released concentrated liquidity (CL). This feature allows LPs to specify a price range within which they are willing to provide liquidity. In Uniswap v2, LPs provided liquidity across the entire price range of the token pair. In v3, liquidity depth increases while traders get better pricing.

Despite the criticism, Hooks has been supported in some quarters. For instance, the user acknowledged that the feature would amplify the value proposition of some protocols, making them real “DeFi” platforms. At the same time, while responding to the critic, another commentator said the feature will do more than what anybody else has done for “real DeFi.”

28th September 2023

Uniswap Unveils Funding Plan For Ecosystem Revamp As UNI Price Hits 4-Month Low

In a move aimed at advancing their vision of creating a self-sovereign Internet with a permissionless alternative to traditional finance (TradFi), the Uniswap Foundation (UF) has submitted a proposal to secure the second tranche of funding.

The desired funding, totaling $62.37 million, will be put to an on-chain vote scheduled for Wednesday, October 4th, with a 10% buffer included to mitigate price volatility.

Uniswap Foundation Seeks Community Approval

The separation of the funding request into two tranches was initially established to allow the UF to finalize its legal entity and obtain non-profit status from the Internal US Revenue Service (IRS), as the company is based in Brooklyn New York, ensuring clarity on tax implications before receiving the larger portion of funds. The UF obtained this status in the spring of this year, prompting the request for the second tranche.

The first tranche of funding, approved by Uniswap governance last year, aimed for $20 million but experienced a decrease in value due to a drop in the price of UNI, the native token of the Uniswap Protocol.

Consequently, the Uniswap Foundation received $17.3 million worth of UNI, creating a remainder of $56.7 million to be requested in the second tranche. A 10% buffer of $5.67 million has been included to account for potential price fluctuations, bringing the total request to $62.37 million.

The Uniswap Foundation plans to receive the funds in UNI, with the amount determined using a 30-day UNI/USD TWAP (Time-Weighted Average Price). The pricing and its source will be explicitly noted in the on-chain proposal to ensure transparency in the process.

Regarding future operations, Uniswap currently holds 452,534 UNI tokens for employee vesting, valued at around $1.9 million. Factoring in a capital loss of $259,000 and the current UNI price, the UF has approximately $9.24 million remaining for operational expenses, expected to sustain them until Q4 2024.

Lastly, according to the proposal discussion, the Uniswap Foundation anticipates revisiting governance in mid-2024 to extend its operational runway.

UNI Consolidates Amid Bearish Market Sentiment

Uniswap’s native token, UNI, has been consolidated between the price range of $4.198 and $4.311 over the past week.

This price stagnation comes from the overall market trend and a bearish macro outlook, with the token experiencing a 0.5% decline in the fourteen-day timeframe. Furthermore, UNI has dropped 9.6% over the past 30 days, reaching a four-month low.

Uniswap

In the short term, UNI bulls must defend the current price floor to establish a strong support level. They aim to surpass the resistance walls at $4.418 and $4.487 to break the downtrend structure and potentially rally toward $6.259. It is worth noting that this price level is still below UNI’s annual high of $7.629.

According to Token Terminal data, Uniswap’s circulating market cap currently stands at $3.67 billion, experiencing a recent decrease of 6.66%. The fully diluted market cap, which considers the total number of UNI tokens that could enter circulation, stands at $4.27 billion, displaying an 8.15% decrease.

The total value locked (TVL) in Uniswap, representing the amount of cryptocurrency assets deposited and utilized within the platform, has recently declined by 5.31%. This decline reflects the broader Decentralized Finance (DeFi) sector’s challenges.

Featured image from Shutterstock, chart from TradingView.com

28th December 2022

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.