The Uniswap token has seen a price increase of around 400 percent since its launch last year. If you take the all-time high of around $ 45 from early May 2021, early investors of UNI/USD can even look forward to a return of more than 500 percent if they have sold the altcoin at the top.
But after the steep correction in which the price has more than halved at times, the question arises whether now is again a good time to buy UNI/USD or whether another price slide threatens. A market overview and a forecast for the development of the Uniswap token.
What distinguishes the cryptocurrency UNI?
The UNI Token was issued by the crypto exchange Uniswap last year. In contrast to exchanges such as Binance or Kraken, Uniswap is not centrally controlled, but decentralized. Accordingly, UNI is one of the so-called decentralized finance Tokens.
Another example is the token YFI (Yearn Finance), which had climbed from a few hundred dollars to almost 100,000 dollars until recently. In recent months, more and more DeFi tokens have entered the market.
The DeFi hype had given a real boost to the prices of the corresponding tokens last year and triggered huge price increases.
Uniswap distributed UNI/USD tokens to users of the platform at the launch. As a result, UNI/USD has seen a rapid rise in prices.
On the Uniswap platform, traders can exchange their assets with each other without the settlement taking place via a third party. In addition to the exchange, it is also possible to lend the cryptocurrency in its wallet. As a reward for lending, users earn on the transaction fees.
Uniswap uses the Ethereum blockchain as a technical basis and the fees are paid in Gwei (gas fee). Uniswap does not have an order book like the classic crypto exchanges. A so-called liquidity pool is available to users for this purpose.
Uniswap is considered one of the largest decentralized crypto exchanges in the world and is a pioneer for many other platforms that have recently entered the market.
How do experts and analysts assess the future for UNI?
The further market development for the Uniswap token is assessed very differently among analysts.
The proponents ‘ side mainly argues with Uniswap’s market-leading position in decentralized finance. Due to the large community, further development of the technology behind the Uniswap token is likely, which could also give the price an additional boost.
On the side of skeptics, it is stated that the great hype around decentralized finance may already be over and demand on the platform is likely to decline in the next few years.
In addition, it is often criticized that the transaction fees based on the Ethereum blockchain are so high that trading is hardly worthwhile, especially for smaller sums. Reports are circulating on the net from users who had to pay more transaction costs than the pure value of the traded sum.
do Ppl selling UNI at 3 bucks a piece realize they’re selling the governance token of a protocol generating more fees than Bitcoin?
Uniswap v2 has a 0.05% “protocol” fee built-in that just needs to be activated by vote.
Currently, that’s roughly$ 180k of revenue per day. pic.twitter.com/BSuvV7G4MO
— Marc ’21 Billy’ Zeller (@lemiscate) September 17, 2020
How will the UNI Award develop in 2020/2021?
In the current bull cycle, UNI / USD has seen a considerable price increase, as the following figures show:
- At launch in September 2020, UNI/USD was quoted at under $ 0.5.
- Just one day later, the UNI/USD price climbed to more than 8 dollars in the top, which corresponds to a growth of about 1,600 percent.
- The price explosion was mainly due to the hype around the market launch and the free tokens for participants. A short time later, UNI/USD corrected to 3 dollars, a decrease of more than 50 percent.
- By the end of 2020, the altcoin was moving sideways in a price corridor between $ 3 and $ 4
- At the start of 2021, the price quickly rose again to up to 7 dollars and thus close to the old All Time High
- From mid-January, a parabolic move began, initially leading the price to just under $ 24 in February
- After a correction to 17 dollars, the price continued to rise until finally in early April 2021 the Record of around 45 dollars was achieved.
- UNI / USD is currently trading at around 27 dollars
- The market capitalization is 15.5 billion dollars. This puts UNI in 10th place in the crypto ranking.
Which course for UNIVERSITY is possible in the future?
Short-Term Price Targets
UNI / USD is currently in a consolidation phase as the view of the daily candles shows. From the lows of about 13 dollars on May 23, however, the price has already recovered significantly and is currently trading about 100 percent higher.
However, UNI / USD has so far failed to break higher. Here, as with almost all altcoins, there is a certain correlation with the Bitcoin price, which also has not been able to take a clear direction for several days.
However, it is expected that there will be a clear price movement by next weekend at the latest. Technical analysis shows UNI / USD moving in an ascending triangle.
This price formation is a bullish pattern according to the probabilities of technical analysis, so a breakout to the top is quite possible, but not certain.
UNI / USD traders should wait for a breakout from the charformation to be confirmed by touching the resistance line again. In this case, the resistance can become a new level of support.
This crucial mark is just below $ 30. On May 27, UNI / USD has already tried several times to break out of the formation upwards, but it has not succeeded. There was even a small fakeout to the top, however, the resistance line was not confirmed as support.
That’s why UNI / USD is still in the pattern and successfully tested the slanted support line on May 30 and 31.
On the 1-hour candles, it can also be seen that the UNI/USD price is currently forming a bullish double-bottom pattern. The resistance line has already broken through UNI/USD and the technical price target is at $ 32, above the great resistance of the ascending triangle.
However, it could also be a fakeout, as price is back in a small downward movement at the time of publication. Should UNI / USD fall back below support at $ 26.5, the pattern will no longer be valid. Then UNI / USD could test the support of the big chart formation again.
If you want to invest in UNI in the medium to long term, you should look at the corresponding forecast models with annual trends.
According to the assessment of Wallet Investor, the price is likely to rise massively in the next few years. For example, analysts expect a price level of more than $ 80 by mid-2020. This corresponds to about three times the current price value.
Digitalcoinprice.com is similarly bullish and estimates that by 2028 the UNI price will even exceed the $ 100 mark. For the next three years, however, consolidation is expected to be between $ 30 and $ 50.