With the development of the crypto sphere, more and more tokens have entered the public eye and become popular with different characteristics and functions. In this post, we are going to explore Uniswap, the name of a decentralized platform as well as a cryptocurrency (UNI), which is one of the popular cryptocurrencies by now. Here you could learn about its story and Uniswap price prediction.
Table of Contents
What Is Uniswap (UNI)？
According to the whitepaper, Uniswap is a protocol for automated token exchange on Ethereum. On November 2, 2018, Hayden Adams (the creator), a former mechanical engineer at Siemens, announced its birth on Twitter. This is a decentralized, open-source platform that allows users to trade ERC-20 tokens without using an order book. Then in September 2020, Uniswap introduced its native UNI token to the public through an airdrop. Accordingly, all UNI token holders will be able to participate in the management of the Uniswap protocol, the distribution of funds within the community, and receive SOCKS liquidity tokens.
The first version of Uniswap allowed users to trade ERC-20 tokens to Ether and back. In May of 2020, the second version was released and the trading of ERC-20 tokens can trade directly between each other without first having to trade with Ether. In May of 2021, the third version allowing more effective use of capital to whoever decides to supply liquidity to Uniswap. That means if one puts more money in the liquidity pool, one could earn more “reward”.
Decentralization and Liquidity
Uniswap is committed to making token trading automated and completely open to anyone who holds tokens. It has high efficiency of trading compared with traditional exchanges. Uniswap uses liquidity pools rather than serving as a market maker. Liquidity pools are a shared pot of funds deposited by the general public. Decentralized exchanges like Uniswap use liquidity pools to fulfill “buy” and “sell” orders so that traders do not need to wait for other matched traders. In this way, the liquidity is faster. In addition, any ERC-20 token can be launched as long as there is a liquidity pool available for traders.
It is worth noting that Uniswap does not store any users’ funds as well as asking users to open an account. It allows users to trade directly from their own wallets, fully controlling their funds.
Uniswap (UNI) Price History
UNI was not originally designed for cryptocurrency but it is often at the top of the cryptocurrency list. At the time of writing, it is the tenth-largest cryptocurrency by market cap.
Uniswap entered the market on September 17, 2020, with a trading price of $2.94. Later, several exchanges listed UNI and its price significantly climbed to $6.96. However, UNI fell to $2.57 by early October then dropped to $1.80 by early November due to massive selling pressure. By the end of 2020, UNI was trading at $4.62.
Uniswap(UNI) Price Prediction
Uniswap(UNI) Price Prediction 2021
Uniswap started 2021 with a trading price of $4.94 and kept climbing up stably. It registered an all-time high at $44.34 on May 3. However, UNI price started to landslide on May 19 and traded as low as $15,14 on May 24. If Uniswap continues to maintain the uptrend, it might reclaim the converted $50 and create another record above $65. On the other end, if UNI fails to break the $50 mark, the price of Uniswap might see is $30. At the time of writing, UNI is trading around $17.6. It currently has a market capitalization of $10.13 billion.
Uniswap(UNI) Price Prediction 2022 – 2024
Uniswap could consistently rise by every year if it can keep obtaining the interest of investors as well as institutions since its technology could be more mature. Its decentralization is always its “selling point” and could gain more attention from the financial industry besides the crypto sphere. At the end of 2022, Uniswap might trade around $100. If the bulls continually rally, the price at the end of 2023 may up to $150 and $200 at the end of 2024. However, if Uniswap fails to obtain people’s interest, it might end with the price at $100 in 2024.
Uniswap(UNI) Price Prediction 2025 – 2030
As the crypto market becomes more and more popular, the competitiveness of various cryptocurrencies will be greater. If a currency can always maintain its characteristics and advantages, then its value can be attractive to people. As for Uniswap, decentralization, high liquidity, and automated market maker are its advantages. If its technology keeps developing, it can be one of the evergreen currencies. And its price could fly as high as $250 by the end of 5 years.
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Conclusion: Is Uniswap (UNI) A Good Investment?
Uniswap is playing an important role in the aspect of decentralization and liquidity in Defi. Its value is greatly related to investors’ confidence and the motivational sentiment towards the crypto industry. In terms of technology and application, it is a good product that brings convenience to people. If you want to do the investment in Uniswap, you should do your research carefully before diving in since the crypto market is always volatile.