Uniswap Witness 45% Surge in its Native Token, UNI
- Uniswap is an Ethereum-based protocol for swapping ERC20 tokens.
Uniswap was one of the winners of the last week after seeing a 45% surge in its native token, $UNI. The token climbed to its highest price of the last three weeks at $5.49 as the DeFi exchange attained a volume that rivaled its parent blockchain, Ethereum.
Fees paid by traders on Uniswap eclipsed those paid on Ethereum. The platform got a 25% increase in volumes during the week, peaking at $5 million per day. These numbers temporarily exceeded Ethereum’s daily fees, ranging from $4 million to $6 million.
2021 was the golden year for many crypto projects and several blockchain platforms expected the good spell to continue into the new year. However, the reverse was the case. Bitcoin, widely seen as the price standard of the industry has constantly declined from its previous high and now trades at $21.1. DeFi projects were also not left out of the bear market. Data from DeFi Llama show that the total value locked (TVL) into DeFi has decreased by nearly 66 % this year. However, Uniswap’s surge might signify a new dawn for the DeFi community. Uniswap has seen some impressive inflows in recent days, with its TVL rising to $5.1 billion. This is an 11% increase.
Why the Growth on Uniswap?
Uniswap is a decentralized trading protocol based on Ethereum. Making transactions on the platform is not reliant on an order book or a central party. In addition, Uniswap enables users to trade without the use of middlemen, with a high level of decentralization.
The growing interest in Uniswap exchange could be traced to the increased interest people have in engaging with Ethereum Layer 2 protocols. Uniswap has a vast user pool since it is integrated with many Ethereum-based applications. It also enjoys support from leading platforms such as Polygon.
Uniswap’s growth also mirrors the growing frustration over Ethereum’s high gas fees. It is noteworthy that Uniswap’s surge coincides with a quick decline in Ethereum’s fees. ETH is presently witnessing its lowest daily fees since 2020. It has become clear that many frustrated users have switched to alternative platforms that offer reliability and cheaper fees.
Despite the recent crisis plaguing Ethereum, it remains the biggest altcoin and is only second to Bitcoin in the entire crypto market. Many believe that the upcoming upgrade will be a game-changer for the entire Ethereum network.