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Uniswap (UNI) Surges After A Bumpy Ride, Is Bearish Run Over?

Uniswap (UNI) has been experiencing downward movement due to general market sentiment. The downtrend started on April 19, dropping from $6 to $5. However, the price rises gradually, indicating that the bulls are building momentum.

This slight increase has left traders wondering if the bearish trend is over and whether things might start getting better for Uniswap (UNI).

Signs of Bullish Sentiment As UNI Surges

Notably, UNI is up today by 3.27% at a high of $5.12 within the last 24-hour trading session. The 24-hour trading volume is also up by over 97.72% at $68 million, signifying that the UNI market is experiencing high activity. This data shows that the bulls build strong momentum with positive market sentiment.

Related Reading: Bitcoin Price Blasts Above $28,000 Following 4.9% April CPI Report

Moreover, the token still holds the 22nd position on the CoinMarketCap ranking with a market cap of $2.9 billion. According to CFGI.io, the market sentiment towards Uniswap (UNI) is bullish. 

The indicator confirms the bullish sentiment with a 61 reading, meaning investors are greedy. This further shows that investors are optimistic about the future potential, and the recent increase in price may be sustainable.

UNI Technical Analysis

Even with the increasing price and trading volume, the technical indicators for UNI remained contradictory, with some pointing towards a potential bear market.

UNI is currently trading below its 50-day & 200-day Simple Moving Averages (SMAs) and has formed a Death Cross, a bearish sign. The Death Cross contributed to the price drop as it caused traders and investors to sell their holdings or take short positions. 

The SMA indicator suggests that both the long-term and short-term trend is bearish. But, the price might reverse if the bulls hold their long positions. The Relative Strength Index (RSI), with a reading of 40.20, suggests that the asset is not in the overbought or oversold regions but in a neutral range. 

This indicates that there’s no significant buying or selling pressure and UNI might experience some level of consolidation or a positive price change.

The MACD indicator suggests a bearish trend, with the MACD currently below the signal line. The histogram also confirms the bearish momentum as it is trading below zero.

UNI is trading at $5.14 at the time of writing. The bears are trying to break through the first support level of $4.746, a level several times.

However, if the bulls build strong momentum and break above the significant resistance level of $5.731, it might trigger a bullish trend. The next support and resistance level will be $3.358 and $7.651. Uniswap’s price can also lose most of its gains if the bears break the support levels successfully. 

Uniswap (UNI) Surges After A Bumpy Ride, Is Bearish Run Over?

Featured image from Pixabay and chart from Tradingview

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Uniswap (UNI) Tanks As Bears Take Charge, Will The Bulls Come To Rescue?

According to Uniswap’s (UNI) price chart, the coin is moving sideways on the chart. As the market opened, the price dropped to $5.30, where UNI found little support.

Bulls are trying to regain control, but selling pressure is quite strong. The coin started exhibiting bearish momentum after April 19, 2023, when sharp crashes were observed in the chart. As of today, May 2, it has continued the bearish trend. 

UNI Price Trend In April

Uniswap opened in April at $6.0603 and t traded around the same price level at the start of the next day before recording a pullback to $5.9461 at the close of the market. Luckily, UNI regained its grip above $6 on April 4. 

Related Reading: Terra Classic Recent Efforts Could Benefit LUNC’s Growth Potential

UNI maintained the same price level from April 4 to 7 before dipping to $5.9191 on April 8. Thankfully, the price dip lasted for 5 days only. On the April 13 close of the market, UNI gained again above $6.

It remained at the level until April 20, when it lost the grip falling to the $5 price range and continuing till today, May 2. 

Uniswap (UNI) Tanks As Bears Take Charge, Will The Bulls Come To Rescue?

Will Uniswap (UNI) Recover From This Downtrend?

The price of Uniswap is $5.31 as of today, May 02, 2023, indicating a loss of 1.74%. Also, its market cap is down by 2.05% at $3.06 billion with UNI’s 24-hour trading volume down by 26.90% at $33 million.

The 1-day price chart for Uniswap price analysis indicates that the UNI bulls are doing their best to control the price decline. However, the bears are still in charge of today’s price trend. But despite being under selling pressure today, the value of UNI/USD has only decreased by 1.74% percent over the past 24 hours.

UNI price is in a zone where investors or traders are afraid to buy UNI, and holders will likely sell due to the current market sentiment. As such, the downtrend might continue, except the bulls build back the bullish momentum. 

UNI Key Price Levels

Based on the Uniswap chart today, the coin directly supports $4.628. If the bears continue this momentum, the next significant level is $3.341. The coin will have trouble breaking past the $7.761 resistance level with this low momentum. 

Since April 18, 2023, when the price of Uniswap fell below its 50-day SMA, this indicator has been indicating a SELL signal. 

Uniswap is also trading below the 200-day SMA. Since April 18, 2023, the 200-day SMA has indicated SELL for the previous 13 days. The Relative Strength Index (RSI) momentum oscillator is 38.58, which shows that UNI is neutral.

The MACD line is also below the signal line and trading in a downtrend, indicating bearish movement.

Featured image from Pixabay and chart from Tradingview

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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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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 Price Struggles At $5.49, Will There Be A Run Up To $6?

After sustaining bullish price action for the past two days, the Uniswap price has registered a shift in its price movement. With a 0.9% loss in the last 24 hours, price sentiment has shifted toward the bears.

At press time, Uniswap has struggled to move past its rigid resistance mark of $4.50. There is a chance that investors could book profits if UNI moves past the aforementioned price level.

The coin has, however, struggled at its immediate resistance of $5.49. Uniswap has to flip the critical resistance into the support zone to move up to its next price ceiling of $6.

If Uniswap price does not sustain above $5.49, then the altcoin could lose the support floor at $4.99. That would invalidate the bullish momentum, bringing the coin down to the next level.

Uniswap Price Analysis: One-Day Chart

Uniswap Price

Uniswap was priced at $5.46 on the one-day chart | Source: UNIUSD on TradingView

UNI was trading at $5.46 at the time of writing. The coin had almost breached the $5.49 price level, but the coin met with a sell-off. If the cryptocurrency fails to trade above $5.49, it will lose momentum. Buyers have to take precedence if the bearish momentum has to be negated.

Overhead resistance stood at $5.70, and moving above that would help the altcoin climb to $6. In the event of a downward trend, UNI will remain at $4.70 for some time before moving further. The amount of UNI traded in the last session increased, signifying an increase in demand.

Technical Analysis

Uniswap Price

Uniswap registered an increase in buyers on the one-day chart | Source: UNIUSD on TradingView

Buyers have increased over the past trading sessions, although the indicators remain below the neutral zone. This is an indicator that the market has yet to register substantial demand. The Relative Strength Index was above the 40 mark, signifying that sellers were still active.

If the buyers take charge in the next trading session, UNI will turn bullish again. Regarding buying strength, UNI was below the 20-Simple Moving Average line, which meant that sellers were driving the price momentum in the market.

The De-Fi token has to flip $5.70 to a support line, so the bulls register a considerable upswing price.

Uniswap Price

Uniswap pictured sell signal on the one-day chart | Source: UNIUSD on TradingView

UNI has not yet broken free from the grip of the bears, as the coin indicated the presence of a sell signal on the one-day chart. The Moving Average Convergence Divergence displays price momentum and changes in trends. MACD was still forming red signal bars, which correspond with a sell signal.

The Directional Movement Index (DMI) was negative as the -DI (orange) line was above the +DI (blue) line, which pictured a bearish trend. The average Directional Index (red) ran above the 20-mark to signify strength in the bearish thesis. Should the bearish thesis be invalidated, a jump above $5.49 remains crucial.

Featured Image From UnSplash, Charts From Tradingview

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Uniswap Price Breaks Past The $7 Mark After Forming This Pattern

Uniswap price has been able to break past the consolidation phase. Over the last 24 hours, the altcoin has moved up by more than 4%. In the past week, the coin surged close to 8%, which can be equated to a rally.

UNI has been consistently green ever since the other altcoins started to travel north on their charts. The technical outlook of the coin also agreed with the bullish force.

However, it is important for Uniswap to maintain this momentum and trade above its immediate price ceilings. If not, then the bulls could soon lose their strength.

Buyers have been supportive of the bulls. As noted on the one-day chart, demand for Uniswap grew substantially.

It is important that UNI trades above the $8 price mark in order for the coin to come under complete bullish control.

Uniswap price has continued to form higher highs, which are tied to strong bullish momentum. The global cryptocurrency market cap today was at $1.04 trillion, with a 0.5% positive change in the last 24 hours.

Uniswap Price Analysis: One-Day Chart

Uniswap Price

Uniswap was priced at $7.047 on the one-day chart | Source: UNIUSD on TradingView

UNI was trading at $7.04 at the time of writing. The coin has struggled considerably to cross the $7 price mark for the past few weeks.

Overall market strength helped the bulls to zoom past the $7 price mark. The coin encountered immediate resistance at $7.40.

This is a crucial price mark for the coin. Once the bulls manage to break above $7.40, the coin could experience another resistance at $7.90 before it can trade above the $8 price level.

A fall from this level will take the altcoin to the $6.47 price level and then to the $6.02 support line. The amount of UNI traded in the last session also appreciated, indicating that buyers had increased in number.

Technical Analysis

Uniswap Price

Uniswap noted an increase in buying strength on the one-day chart | Source: UNIUSD on TradingView

The altcoin for the past month and a half noted more selling pressure compared to buying strength. With its recent break from lateral trading, buyers are finally back on the chart.

The Relative Strength Index was above the 60-mark, which is considered bullish with more buyers compared to sellers.

Additionally, UNI formed a bullish engulfing pattern which happens when the chart pictures bigger-sized greener candles. This pattern is tied to positive price action.

The Uniswap price was above the 20-SMA line which signified growth in the altcoin’s demand. It also meant that the buyers were driving the price momentum in the market.

Uniswap Price

Uniswap displayed buy signal on the one-day chart | Source: UNIUSD on TradingView

UNI was under a bullish influence, as pointed out by other technical indicators as well. The Moving Average Convergence Divergence indicates the strength and direction of an asset.

The MACD underwent a bullish crossover and formed green histograms. These were the buy signal for the altcoin. Bollinger Bands measure price volatility and price fluctuation.

The bands were moving parallel to each other, signifying that price movement will not experience any sharp volatility over the upcoming trading sessions.

Featured Image From VOI, Charts From TradingView

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Uniswap Price Continues Bearish Spell, Can It Move Past $6?

Uniswap price is consistently travelling southward on the one-day chart. UNI’s bulls have not been able to break past its immediate support, causing traders to lose confidence.

Over the last 24 hours, Uniswap lost 4% of its value. In the past week, UNI surged 4% on the one-day chart.

The technical outlook of UNI remained mixed with some signals pointing toward the bears taking over the market.

The coin’s current support zone was between $5.60 and $5.00, respectively. The bulls have constantly attempted to break past the $5.94 level.

This has caused buyers to leave the market as sellers have entered the one-day price chart. As Bitcoin struggles at $19,000, most altcoins also attempt to move past their immediate price ceilings.

If the Uniswap price continues to witness less demand, then over the next trading sessions the coin can attempt to touch the closest support line.

At the moment, UNI is trading extremely close to the local support line and if buying strength doesn’t pick up, the coin will fall below the immediate support line.

Uniswap Price Analysis: One Day Chart
Uniswap was priced at $5.69 on the one-day chart | Source: UNIUSD on TradingView

UNI was trading at $5.69 at the time of writing. The bulls have been defeated at the $5.94 resistance mark a couple of times.

Uniswap price can lose most of its gains if the coin continues to witness less demand. Overhead resistance stood at $5.94.

If UNI falls below that level, it will be reduced to $5.00. The amount of Uniswap traded in the last session fell, signalling that buying strength remained low. This indicated bearishness for UNI.

Technical Analysis
Uniswap registered low buying strength on the one-day chart | Source: UNIUSD on TradingView

UNI, for most of this month, traded in the selling zone. This is because the coin has been unable to topple over the immediate resistance mark.

This is because of the low demand for Uniswap at the time of writing. The Relative Strength Index was below the half-line, and that was a sign of increased selling strength over buying strength.

It also depicted bearishness on the one-day chart. The Uniswap price was below the 20-SMA line, an indication of less demand. It also means that the sellers are currently driving the price momentum in the market.

Uniswap continued to display buy signal on the one-day chart | Source: UNIUSD on TradingView

UNI’s technical indicators depicted mixed signals on the one-day chart. The Moving Average Convergence Divergence measures the price momentum and overall price action of the altcoin.

MACD underwent a bullish crossover and formed green signal bars. These green signal bars were buy signal for the coin.

This also could mean that, with increased demand, UNI might make a price comeback in the upcoming trading sessions.

Bollinger Bands portray price volatility and fluctuations. The bands had opened up, meaning that the coin was about to witness price volatility.

Featured Image From Somag News, Charts From Tradingview

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Uniswap Price Loses Momentum, Are The Bears Back?

The Uniswap price had risen to almost $6 on its chart, but the bulls were unable to maintain that level. Over the last 24 hours, the coin again lost momentum and fell south on its chart.

Over the last 24 hours, UNI registered a 0.9% increase in its price. In the past week, the coin negated most of its gains and lost 1.2% of its market value.

The Uniswap price technical outlook was bearish, and selling strength was higher, causing the price to drop further on its chart.

Although Uniswap tried to move in a different direction than the broader market, the bulls gave up. Bitcoin also lost the $19,000 price mark and is closing in on its immediate support level.

For the Uniswap price to revisit the $6 price mark, buyers need to re-enter the market.

Although just 48 hours ago the coin displayed a bullish stance, an increase in the number of sellers has invalidated the chance of a bullish revival.

The global cryptocurrency market cap today was $958 billion, with a 0.4% negative change in the last 24 hours.

Uniswap Price Analysis: One Day Chart
Uniswap was priced at $5.73 on the one-day chart | Source: UNIUSD on TradingView

UNI was trading at $5.73 at the time of writing. The coin was trading very close to the $6 mark. However, the buyers exited the market.

Overhead resistance for Uniswap price stood at $6, and if UNI can move over the $6.40 price level, the altcoin’s upward movement could be anticipated.

The nearest support level for the coin stood at $5. A fall from the $5 price mark could push UNI to trade near the $4 price zone.

The amount of Uniswap traded in the previous session indicated that selling strength increased on the one-day chart.

Technical Analysis
Uniswap depicted a fall in buying strength on the one-day chart | Source: UNIUSD on TradingView

The altcoin’s technical indicators note the bears taking over as buying strength dipped on the one-day chart. For most of the month of September, buying strength remained low for the altcoin.

The Relative Strength Index was below the half-line and that meant a lower amount of buying strength on the one-day chart.

Uniswap price was below the 20-SMA line. This meant bearishness for the coin. It meant that sellers were driving the price momentum in the market.

Uniswap depicted the onset of a buy signal on the one-day chart | Source: UNIUSD on TradingView

The technical outlook for Uniswap was also mixed as the indicators also picked up on buy signal for the coin. Despite buyers remaining low, indicators indicated that there could be a possibility of buy signal for the altcoin.

The Moving Average Convergence Divergence points toward the price momentum and overall price action of the coin. MACD underwent a bullish crossover and started to depict tiny green histograms as buy signals for UNI.

This meant that, with more buyers, UNI could recover its chart. The Chaikin Money Flow displays capital inflows and outflows. CMF climbed above the half-line, signalling more capital inflows compared to outflows.

Featured image from GreenBiz, chart from TradingView.com

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Uniswap Price Falls Below $9 After It Met With A Sell-Off, What’s Next?

Uniswap price at the current moment has displayed a downward movement on its chart. The coin lost the $9 price mark and was moving closer to its local support level.

Over the last 24 hours, UNI depreciated considerably by 6%. Most gains that UNI logged were lost over the past week.

The technical indicator for UNI has depicted mixed trading signals. The buyers in the market have left owing to the recent fall in price.

For Uniswap price to pick up momentum, buying strength and demand for the coin remain quite crucial.

As selling pressure mounted, UNI started to flash bearish price signals on its chart. The price of the altcoin needs to experience a breakout for the bulls to drive the price momentum.

The coin broke below its $8.40 support line and fell below that. An increase in demand for the coin can help UNI recover over the next trading sessions.

Uniswap Price Analysis: Four-Hour Chart
Uniswap was priced at $8.30 on the four hour chart | Source: UNIUSD on TradingView

The altcoin was priced at $8.30 at the time of writing. Uniswap lost its immediate support line and the bears have changed that level to a resistance mark for the coin.

Overhead resistance for the altcoin was at $8.76, however, a tough price ceiling for the altcoin was at $9.30.

The coin has tried to break past the mentioned price mark a couple of times but was met with sellers in the market. The immediate price floor for the coin stood at $7.80.

Although over the past few weeks UNI has recovered considerably, the demand for UNI has to keep growing.

The volume of UNI traded in the last session has declined as there has been a fall in buying strength.

Technical Analysis
Uniswap depicted a small rise in buying pressure on the four hour chart | Source: UNIUSD on TradingView

UNI had moved closer to the oversold zone over the last trading sessions, however, it did not touch that zone. At the moment, the coin has low buying strength but the coin was not overbought.

The Relative Strength Index noted an uptick below the half-line signifying that the demand for the altcoin could register an increase over the next sessions.

Uniswap price was seen below the 20-SMA line, this signalled bearishness in the market. It also depicted that the sellers were driving the price momentum in the market.

Uniswap painted sell signal on the four hour chart | Source: UNIUSD on TradingView

The altcoin has flashed bearish signals on most technical indicators. UNI registered a sell signal on the four-hour chart. Moving Average Convergence Divergence depicts the price momentum and change in the momentum.

As demand for UNI has remained low, MACD underwent a bearish crossover and displayed red histograms.

The red histograms were sell signal for UNI. Chaikin Money Flow determined the capital inflows and outflows.

CMF was below the half-line as capital inflows were less than outflows at the time of writing. With increased demand and buying strength, the coin will attempt to move up on its chart.

Featured image from TechCentral, chart from TradingView.com

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Despite Bear Market Uniswap Gains Significant Traction, What’s The Reality?

The past few weeks have brought a positive twist in the flow of events within the cryptocurrency market, especially for Uniswap. Lots of the crypto assets are gaining more value in their prices. This overturns after the severe crypto winter that puts lots of protocol at the edge.

Most witnessed drastic price drops up to 50% since January 2022. The last chaos in the crypto space was better imagined than described.

Additionally, the collapse of the algorithmic Terra stablecoin and its native token, LUNA, spiked the downward trend. Several investors lost millions of dollars, creating tension in the entire crypto industry. Some crypto service companies were thrown off balance as they struggled to be their ship afloat.

However, a few of them still went bankrupt with most of their depositors’ funds locked on their platforms. Some participants in the industry are beginning to lose confidence in digital assets as fear, uncertainty, and doubt gradually crept in.

All seems to be going progressively well for Uniswap, as its native token, UNI, increases its price value. The strength of its price increase has put Uniswap in ranking by market cap among the top 15 cryptocurrencies.

In addition, the Ethereum-based decentralized protocol has experienced a significant surge in value, reaching 150% over the past seven weeks.

Uniswap Sentiment Activity l Source: Sentiment

According to data from Santiment, an on-chain analytics firm, there has been an increased and substantial whale accumulation of the UNI tokens. This explains its recent price rally as well as the surging address activity.

Santiment reported that the Uniswap daily active addresses have risen to over 1,100. With the presence of strong address activity on the network, the protocol has the potential to sustain the current price action.

Uniswap Whale Addresses Push Positive Moves

Uniswap whale addresses have shown a positive move since the crypto crash of May 2022. The addresses have accumulated vast amounts of UNI tokens ranging in massive percentages. In their performance, whale addresses containing up to 100 thousand to 1 million UNI tokens have undergone massive accumulation within the past two weeks.

Also, Santiment noted that the level of transactions they deem to be prominent are those taking about $100,000 or more. It mentioned that such transactions are from the whales and moving back to those seen in May levels.

So, it stated that all the recent significant transactions from the whales are noticeable. This is because such moves accumulated just in the past week before the price climbed to $9.69.

Uniswap has recently gained massive traction recently l Source: UNIUSDT on TradingView

Besides its price rally, Uniswap has increased its active average trader returns. It currently recorded over 22.5% in its 30-day MVRV.

According to the report from Santiment, the current value is clearly above the danger zone. Despite Uniswap’s impressive price rally, Santiment has advised investors to tread with caution with the protocol.

Featured image from Pexels, charts from TradingView.com

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Lateral Movement Of Uniswap, When Is There A Chance Of Correction?

Uniswap has displayed tight trading conditions for over the last 24 hours. The coin has been consolidating and it recorded minor losses over the last day. Although Uniswap performed well over the past week securing more than 30% gain, recently, the bulls seem to be resting.

Recently UNI broke past the $6.00 mark and it could be eyeing the $8.00 price ceiling now. Buying strength displayed slight decline but buyers were still more in number than sellers in the market. Bitcoin’s price action has helped many altcoins to rally but continued support from the buyers still remain crucial.

Going by the technical indicators, it seems though that UNI might hover around the same price zone at least over the upcoming trading sessions. After the rally, chance of a pullback cannot be ruled out, Currently UNI hasn’t witnessed a pullback but consistent consolidation could drag the coin to the nearest support level.

If it manages to clear its immediate resistance, there are chances for UNI to trade beyond the $8.00 price mark.

Uniswap Price Analysis: Four Hour Chart
Uniswap was priced at $7.41 on the four hour chart | Source: UNIUSD on TradingView

UNI was trading at $7.41 at press time and the coin was still optimistic on its chart. The current range of consolidation was between $7.33 and $7.49 respectively. A slight push from the buyers could help Uniswap to zoom past the $7.57 resistance mark.

If that happens, reaching $8.00 becomes easy and there could be a chance that UNI would trade above the $8.00 mark. On the flipside, the local support for the coin was at $7.08 and then at $6.47. A break below the $6.47 will push Uniswap near $5.38. Volume of UNI traded declined slightly pointing towards a slight fall in buying pressure.

Technical Analysis
Uniswap registered a small downtick in the number of buyers on the four hour chart | Source: UNIUSD on TradingView

UNI has witnessed growing buying strength on the chart ever since the coin rallied. There is a small downtick in the number of buyers even then buyers are still in control of the market. The Relative Strength Index was above the half-line and that meant buying pressure exceeded selling pressure.

Price of UNI was also above the 20-SMA line which signalled that buyers were driving the price momentum in the market. UNI was also above 50-SMA and 200-SMA which meant that the coin was trading on a bullish momentum.

Related Reading | Bitcoin Barrels Towards $24k As Miners Move $300 Million From Wallet

Uniswap registered fall in capital inflows on the four hour chart | Source: UNIUSD on TradingView

UNI was positive in terms of the buying strength however some indicators suggested otherwise. Chaikin Money Flow determines the capital inflows and outflows of the asset. Chaikin Money Flow was below the half-line and that meant a decline in the capital inflows. Moving Average Convergence Divergence picture the price momentum and a change in price trend.

MACD underwent bearish crossover and red histograms were seen below the half-line. This reading is connected to a change in the current price direction over the upcoming trading sessions and also a sell signal. If Uniswap has to remain in the bullish zone, buyers need to be present along with support from the broader market.

Related Reading | Bitcoin Dominance Dives As Ethereum Takes Up More Space

Featured image from Forbes India, 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.

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Uniswap Launches Product In The Midst Of Lawsuit, UNI Reacts To The Downside

Uniswap’s governance token UNI has been trending to the downside following the general sentiment in the market. The token records a 2% loss during the last day as two major events take UNI holders’ attention and could suggest more downside price action for the short term.

Related Reading | Uniswap Registers Yearly Low: Vital Trading Levels To Follow

At the of writing, UNI trades at $9.4 with a 6% loss in the past 7-days.

UNI is trending to the downside in the 4-hour chart. Source: UNIUSDT Tradingview

Yesterday, news broke about a class action lawsuit against this decentralized exchange (DEX) developer Uniswap Labs, its inventor Hayden Adams, and other major investors in the project. Filed as a class action in the Southern District of New York with Nessa Risley representing the plaintiffs.

These people are suing Uniswap Labs and others claiming that they have “unlawfully promoted, offer, and sold unregistered securities” on the DEX. In addition, they claim that Uniswap’s lack of a Know Your Customer (KYC) policy has enabled alleged cases of fraud without the DEX taking measures to prevent these supposed activities.

Furthermore, the plaintiff claims the DEX and the defenders have benefited from “undisclosed fees” collected on “every transaction” executed with the platform in an alleged violation of the U.S. Securities laws, according to the document. The plaintiffs also accused the platform of selling scam tokens.

These include Rocket Bunny, BoomBaby.io, Matrix Samurai, EthereumMax, and others. The plaintiffs claimed these tokens failed to file a registration with the U.S. Securities and Exchange Commission (SEC).

Uniswap is a decentralized exchange running on Ethereum and operating under a governance model controlled by UNI holders. Unlike centralized exchange it is permissionless, and its smart contracts respond to no centralized authorities for the benefit or detriment of any party.

According to the document filed with the court, Risley and the other plaintiffs were not familiar with Uniswap. At least, the document suggests they have little experience trading on the platform before incurring alleged “substantial losses” which led to their lawsuit.

Uniswap lawsuit has me rolling.

She needed consistent disclosures to figure out that "Rocket Bunny Token" and "BoomBaby" and "Matrix Samurai" were not legitimate, sensible investments.

💀💀💀 pic.twitter.com/N1qq8uoZnz

— Cobie (@cobie) April 14, 2022

Uniswap Releases New Product

Less than 24 hours after the class action was filed, Uniswap Labs launch a Swap Widget feature to allow users to “seamlessly swap tokens anywhere across the web”. The dApp is accessible via certain platforms, such as Open Sea and Oasis.

1/✨ Today, we're excited to announce the launch of the Swap Widget which allows users to seamlessly swap tokens anywhere across the web 🙌

Find the Widget already on your favorite apps like @opensea, @FWBtweets, & @oasisdotapp pic.twitter.com/SzQ95t5sEs

— Uniswap Labs 🦄 (@Uniswap) April 14, 2022

The product is part of an Uniswap expansion initiative which is aim at providing “everyone” with access to “fair, open, and transparent markets”. The Widget is supposed to be easy to integrate by developers as it would only require “one line of code”.

Related Reading | Ethereum At $3028, Where Is The Next Critical Support Level For ETH?

The Uniswap community has positively reacted to the announcement. However, the DEX’s native token has trended to the downside, likely due to its correlation with Bitcoin and other larger cryptocurrencies.

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Community Voted, Why Uniswap Will Be Deployed On Polygon

Popular decentralized automated market maker (AMM) Uniswap will deploy its smart contracts on Polygon, the Ethereum scaling solution, Proof-of-Stake (PoS) chain. The announcement was made via Twitter by the official handle of Uniswap Labs after the completion of a community vote.

Related Reading | Uniswap Community Reacts Against The New Proposal, Here is Why

The AMM will be rollout on Polygon on its third iteration (V3), per the initial proposal. The motion was passed with 72 million votes in favor and 503,009 against which suggest the proposal has wide acceptance within UNI holders.

🗳 The Uniswap community has voted to deploy v3 on @0xPolygon through the governance process.

⚡ Uniswap Labs will deploy Uniswap v3 contracts within a few days.

👀 Stay tuned. pic.twitter.com/LwVLwEngPl

— Uniswap Labs 🦄 (@Uniswap) December 18, 2021

Presented on November 19th by Mihailo Bjelic, one of Polygon’s co-founders, claiming it’s “the right moment” to carry on this community driven initiative. Bjelic claimed Polygon has one of the “strongest DeFi ecosystem”, that the implementation could boost Uniswap’s user base, and promised users that they will incentive adoption to achieve that goal.

We initiated the final phase of the governance process – On-chain Vote: https://t.co/PcHcnrcj2u.

If the vote passes, the deployment is officially approved. 🤗

Huge thanks to the Uniswap community for the overwhelming support so far!

Let's make this happen! 🦄💫 https://t.co/RePmCRaBlb

— Mihailo Bjelic (@MihailoBjelic) December 10, 2021

As a scaling solution for Ethereum, Polygon can also provide users with a “battle-tested” and cost-efficient implementation of the popular AMM. In the DeFi ecosystem, Uniswap ruled supreme until high transaction fees price-out a large number of users from the protocol.

As Bjelic pointed out, other major Ethereum protocols have chosen Polygon as their preferred scaling solution. The co-founder mentioned Aave, Curve, SushiSwap, Balancer, and others while adding the following on the advantages of Polygon and its ecosystem:

Besides the impressive number of deployed projects, additional strength of Polygon’s DeFi ecosystem is that it is already self-sustainable. We effectively stopped all liquidity mining incentives some time ago, and yet we keep seeing capital and user inflow 25 and very high user retention 14.

Additional data provided by Bjelic claims that protocols deployed on Polygon experience an increase in their use base. After their implementation on this network, Aave reached 700,000 actives users, a 10x increase when compared to the same metric on Ethereum.

Uniswap And Polygon To Onboard Thousands Of New Users?

Of course, most users expect the implementation on Polygon to decrease the cost of usage for Uniswap. The co-founder of this scaling solution claimed that Aave also experienced a 16x increase in its user’s activity.

Bjelic further argued that the integration between Uniswap v3 and Polygon’s PoS will represent a comeback to the original “DeFi vision”. This sector was created to provide people with open, and inclusive financial solutions. He added:

DeFi is envisioned as an open, inclusive financial system, so deploying to Polygon (and other scaling solutions) can be considered as returning to this original vision.

Polygon will explore the possibility to commit around $20 million from their treasury to create liquidity incentives. The project abandoned this practice, but Bjelic claimed they are willing to resume for Uniswap due to its importance as one of the flagship DeFi protocols.

The funds will be distributed as follow: $15 million might be allocated for long term liquidity incentives and $5 million for a “special purpose DAO”. The goal of this organization will be to increase Uniswap adoption on Polygon.

Related Reading | Uniswap Labs Limits Access To Certain Tokens, What It Could Mean For The DeFi Sector

As of press time, UNI trades at $15,99 with 10.3% profits in the past day.

UNI trends to the upside in the 4-hour chart. Source: UNIUSDT Tradingview

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UNI Price Slides Due To SEC Investigation, In Risk Of Deep Plunge?

The decentralized nature of Uniswap (UNI) will be put to the test. Earlier, it was revealed that the Securities and Exchange Commission (SEC) opened an investigation on Uniswap Labs, the company behind the protocol.

Immediately after the news broke out, the price of UNI, Uniswap’s governance token, took a hit and dropped as much as 4%. Meanwhile, the main cryptocurrencies in the top 10 showed strong gains.

Bitcoin managed to climb above the $50,000 mark with a 2.7% profit in the daily chart, and Ethereum went north of $4,000 for the first time since May’s crash. ETH trades at $3,986, at the time of writing, with a 6.1% profit.

ETH is on a strong bullish trend in the daily chart. Source: ETHUSD Tradingview

UNI’s price stands at $29,09, and it’s the worst-performing asset in the crypto top 10 by market cap with a 2.1% loss in the daily chart.

UNI with minor losses in the daily chart. Source: UNIUSDT Tradingview

In the crypto community, many remember XRP’s price reaction to the SEC action filed against Ripple Labs, and two of its executives. At that moment, XRP was the third cryptocurrency by market cap and was following the bullish sentiment in the market.

As 2020 was coming to an end, so it did XRP’s upside momentum. The SEC killed the push and XRP plunged, presenting heavy losses for a couple of months.

It’s unclear if UNI will follow, up until now the token showed conviction to break above major resistance at $30. The governance token was trading in the $25 – $30 range. Thus, experts claimed that this was the last obstacle before it can drive a fresh rally.

Source: Skanks Futures (@skanksfutures) via Twitter

UNI’s indicators point to further appreciation but could flip negative/neutral in the coming days. The Relative Strength Index (RSI), an indicator to measure momentum, for the governance token stands at 56.7 or neutral, at the time of writing.

In the short term, it seems critical that UNI breaks the $30 resistance. If the rest of the market makes a strong push to previous highs, UNI’s price could benefit. In that sense, Bitcoin and Ethereum performance are critical.

Uniswap (UNI) A Battle For The Whole Crypto Industry?

The rumors about a possible SEC investigation on Uniswap Labs have been circulating for some time. As NewsBTC reported, the software development studio limited access to certain tokens via the app.uniswap.org domain.

Some speculated that this decision was made due to pressures from the Commission. In addition, SEC Chair Gary Gensler seems determined to “put DeFi under a microscope”. Compounds Labs General Counselor Jake Chervinsky comment the following on recent events:

(…) it shouldn’t surprise anyone who’s seen Chairman Gensler’s recent comments on DeFi. It also shouldn’t worry anyone too much (yet). An investigation is *not* an allegation of wrongdoing, it’s just how SEC gathers information.

Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course

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Uniswap Labs Limits Access To Certain Tokens, What It Could Mean For The DeFi Sector

Software development studio Uniswap Labs (UL) announced the restriction of certain tokens via the app.uniswap.org domain. The company claims to be taking part in “creating a better” financial system and has taken the decision after reviewing the regulatory landscape and the actions of other “DeFi interfaces”.

The token removed from the domain represented a “very small portion of overall” trading volume on the platform, UL claims. Amongst the restricted tokens is Gold Tether (XAUt), Grump Cat (GRUMPY), iAAVE, iADA, iBNB, sAPPL, sCOIN, and many more related to options, tokenized stocks, and securities from traditional companies.

The software studio clarified that the Uniswap Protocol is a separate entity from the interface accessible via the app.uniswap.org domain.

(…) It provides unrestricted access to anyone with an Internet connection. Similarly, this action has no impact on the Uniswap Interface code, which remains open source, or the many other portals or locally run instances used to access the Uniswap Protocol.

The same clarification was made by Hayden Adams, inventor of the protocol, via his Twitter account. After receiving a lot of criticism for their decision, Adams reminded his followers about the difference between Uniswap Interface, the open-source GPL code, app.uniswap.org, the domain, and Uniswap the protocol.

Later, he added that true decentralization “doesn’t mean UL lets you do whatever you want on its website”, but that users can access the protocol via other interfaces. He added:

(In my opinion) the Uniswap Protocol remains the most decentralized of the top defi protocols by a wide margin. Why: Non-upgradable and permissionless smart contracts, w/ no admin keys or ability for UNI holders to steal underlying liquidity.

Is Uniswap Labs Trying To Prevent A Government Crackdown?

Of course, Adam’s statements caused different reactions across the crypto community. Stanislav Kulechov, a founder of decentralized protocol Aave, said that “DeFi front-ends should” be hosted on the InterPlanetary File System (IPFS).

In that way, the protocols can be “less dependent on the founding team” and maintain their decentralization. Kulechov also proposed a Bring-Your-Own-Front-End (BYOF) solution that would allow users to download the software into a device to access the protocol.

Gabriel Shapiro, General Counselor at Delphi Labs, pointed out the possibility that anyone who forks the Uniswap front-end could receive a lawsuit from the software development studio UL. Shapiro said that the company “like DMCA (Digital Millennium Copyright Act) takedown requests”.

In a different post, Shapiro addressed the rumors suggesting that UL and other DeFi projects received subpoenas from the Securities and Exchange Commission (SEC).

A few days ago, Senator Elizabeth Warren send a letter to the SEC Chair, Gary Gensler. Warren requested clarity on regulations regarding cryptocurrencies, stablecoins, and DeFi with a deadline set for July 28th, 2021, for Gensler to replied.

Many argued that UL decision could be related to that event and to the aforementioned subpoenas. Shapiro doesn’t completely rule out this possibility but claims that they only rumor to be taken with a grain of salt.

At the time of writing, UNI and other major DeFi tokens haven’t reacted to these events. Uniswap’s governance token trades at $18,17 with a 4.1% in the daily chart.

Uniswap UNIUSDT
UNI with small losses in the daily chart. Source: UNIUSDT Tradingview
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Controversy Over Uniswap $20M Grant To “DeFi Education Fund”, Failed Governance Model?

There has been a lot of debate around decentralized exchange Uniswap and the DeFi Education Fund (DEF).  This entity received $20 million or 1 million UNI, the protocol’s native governance token, to be lobby and increase the DeFi sector level of adoption. The funds are to be liquidated in 4 to 5 years.

The proposal to created DEF was introduced by the Harvard Law Blockchain and Fintech Initiative (HLSBFI), a student organization dedicated to developing this institution’s students’ knowledge on blockchain technology and the FinTech ecosystem.

About a month ago, the DEF sold 500,000 UNI ($10 million) aided by crypto exchange Genesis, via an Over the Counter (OTC) deal. After this tweet, all hell broke loose, and many went to said that the organization was “looting” Uniswap’s treasury.

In a Medium post, the DEF argued that regulatory Dynamic and the “state of global policy proposals”, should keep a level of flexibility and speed to spend the funds. Thus, they converted them into USDC. The money will still be used to begin their work and set up future operations, the organization said:

(…) we expect the vast majority of DEF’s expenses will be dollar-denominated, the UNI funds must be diversified into dollars. Diversifying half of the 1M total allocation provides the DEF with a sustainable budget to weather any market downturns and allows the DEF to rapidly get to work.

They claim that regulations in the U.S. and Europe are DeFi’s greatest threat. Thus, they are allegedly preparing for the possibility that regulators in these regions stripped DeFi protocols and their community from liberties to which they have “become accustomed”.

Has Uniswap And Other DeFi Protocols Governance Model Been Compromised?

Partner at Cinneamhain Ventures, Adam Cochran, summarized and expressed most of the concerns from the Uniswap and crypto community. Cochran classified the process as a “big botch” with failures in transparency and communications from the DeFi Education Fund.

In addition, he questioned the way that this entity liquidated half their funds and suggested that “DeFi savvy people” will find a better use for them. According to Cochran the $10 million are “sitting idle in a wallet” when they could lock the UNI in Compound, Aave, MakerDAO, or other DeFi protocols for a yield.

The expert added that the initial proposal should have included a vesting period for the funds. Cochran said:

Uniswap gave $20M to an unsupervised group, over which no one has any governance authority, who has already made questionable judgements, has poor defi practices, and even when called out provide unprofessional communications with weak arguments to their position.

Later, he concluded that the DEF has failed “so far” at core tasks, represent the Uniswap community, understanding DeFi, and in the proper administration of their organization. Cochran added:

This should serve as a call for all DAOs to seriously evaluate their governance models and should also raise into question the large delegations that VCs have given to student organizations.

In that sense, Cochran believes that DAO governance still has a long way to go to refine its voting and governance processes.

At the time of writing, Uniswap (UNI) trades at $18,05 with a 2.3% loss in the daily chart.

Uniswap UNI UNIUSDT
UNI trends to the downside in the daily chart. Source: UNIUSDT Tradingview
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Charted: Uniswap’s UNI Sets New ATH At $45, Why It Could Extend Gains

Uniswap’s UNI gained momentum and traded to a new all-time high near $45.00 against the US Dollar. The price is likely to continue higher above $45.50 and $46.00 in the near term.

  • UNI started a fresh increase after forming a base above the $40.00 level against the US dollar.
  • The price is trading nicely above $42.00 and the 100 simple moving average (4-hours).
  • There was a break above a major contracting triangle with resistance near $40.00 on the 4-hours chart of the UNI/USD pair (data source from Kraken).
  • The pair is likely to continue higher if it clears the $45.00 and $45.50 resistance levels in the near term.

Uniswap’s UNI Gains Traction

After forming a support base above $40.00, UNI started a fresh increase. The last swing low was near $39.30 before the bulls pushed the price above the $42.00 resistance.

There was a break above a major contracting triangle with resistance near $40.00 on the 4-hours chart of the UNI/USD pair. The pair broke the $43.00 and $44.00 resistance levels. A new all-time high is formed near $45.05, with a bullish angle, unlike bitcoin and just like ethereum.

The price is now trading nicely above $42.00 and the 100 simple moving average (4-hours). An immediate support is near the $43.70 level. It is close to the 23.6% Fib retracement level of the upward move from the $39.30 low to $45.05 high.

Uniswap’s UNI

Source: UNIUSD on TradingView.com

On the upside, the price is facing hurdles near $45.00. A close above the $45.00 level could open the doors for a more gains in the near term. The next key resistance could be near $46.50, above which the bulls are likely to aim a test of the $50.00 level.

Dips Supported?

If UNI price fails to climb above $45.00 or $45.50, it could correct lower. The first major support is near the $43.70 and $43.50 levels.

The main support is now forming near the $42.00 zone. It is near the 50% Fib retracement level of the upward move from the $39.30 low to $45.05 high. A downside break below the $42.00 support might open the doors for a push towards the key $40.00.

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 60 level.

Major Support Levels – $43.50, $42.00 and $40.00.

Major Resistance Levels – $45.00, $46.50 and $50.00.

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This is why Uniswap v3 could have “insane efficiency”

With a tentative deployment date set for May 5th, 2021, the third iteration of decentralized exchange Uniswap is amongst the most hype projects in the crypto space. Its newest features offer its user more flexibility to leverage earning strategies.

However, the creator of Uniswap, Hayden Adams, claims there is much more to the update. Via his Twitter account, he showed the DEX’s new equation to calculate efficiency and said:

I don’t think the insane efficiency of Uniswap v3 has sunk in yet. Over the past 3 months (Jan8-present) the price of ETH/BTC has ranged from 0.0295 to 0.0454 Plugging into the formula, we find it is 9.8x more efficient than v2.

Comparing the second to the soon-to-launch iteration of Uniswap, Adams highlighted other advantages for the users, like the reduction in the amount of capital required to provide liquidity.

The liquidity providers (LP) will also be able to participate in a specific range for a trading pair to receive trading fees with the “same amount of impermanent loss”. Adams added the following example:

the Uniswap v2 WBTC/ETH pair has $318m in it. If WBTC/ETH LPs instead provided to the range of 0.0295 and 0.0454 on v3 they could create the same amount of liquidity and take on the same amount of impermanent loss with just 318/9.8 = $32m.

Uniswap v3 will be over 10x more efficient

In a post title “The Dex to Rule Them All”, researcher Will Sheehan”, go deeper into Uniswap v3. Claiming that this update will “change” the dynamics in active and passive LP. Therefore, minimizing and creating a better balance between all the users.  Adam added:

Efficiency is just a means to an end – the result of concentrated liquidity is offering far better execution rates and giving LPs more desirable positions. How much better will they be once v3 is live? These things can be hard to predict. But i have a good feeling.

UNI is trading at $29,62 with 3.4% gains in the daily chart. Over the week, the governance token has 5.6% gains and 11.5% losses in the monthly chart. With over $15 billion in total market cap, UNI managed to break into the top 10, surpassing Litecoin and Chainlink.

Uniswap UNI UNIUSDT
UNI with moderate gains in the 24-hour chart. Source: UNIUSDT Tradingview