Written by William Peaster
Uniswap Is DeFi’s Darling
That said, Uniswap’s the blue-chip of DeFi blue-chips, and traders have been rallying to the project’s UNI governance token in recent days, accordingly. The acute buy pressure has notably pushed the UNI price to +$33 and the token’s market cap to +$17B, making UNI the 8th-largest cryptocurrency presently.
This is a big deal, because it’s the first time a DeFi project (with the exception of Chainlink, which some people separately slot into the “Oracles” category) has entered the echelon of the top 10 cryptocurrencies.
There’s a handful of reasons why we're seeing this strength now, and they include:
The “Great DeFi Re-Rating.” Ethereum’s DeFi sector boomed in recent years while other top cryptos like Litecoin and XRP became ghostchains. Many people within the cryptoeconomy are just starting to rebalance their portfolios accordingly.
The arrival of institutional investors. Bitcoin, Ethereum, and cryptocurrencies have been increasingly capturing the attention of mainstream users, including institutions like banks and hedge funds. As part of this influx of attention, many new eyes are turning to DeFi stalwarts like Uniswap.
Uniswap V3 is just around the corner. No one in the public knows the exact specifications of the coming Uniswap V3 system, but the Uniswap has been hinting that it’s going to be powerful in ways we’ve never seen before. The upgrade’s release is expected sometime in the coming months, so some investors have been piling into UNI in anticipation.
Uniswap’s layer-two (L2) scaling foray is near, too. Uniswap is reportedly close to launching an instance on Optimism, a promising Ethereum scaling solution powered by optimistic rollups (ORUs) that will help users trade rapidly and basically for free. Naturally, this will be amazing for the dapp’s ability to bring in and keep new users.
Take all these factors together, and you have the makings of a project that probably won’t be slowing down any time soon.
The thing about the top DeFi projects like Uniswap is that they actually work and have real adoption in the here and now.
They actually provide services that many people want to use.
They actually have promising and ambitious roadmaps that are being made good on step by step.
So no, don’t be surprised if UNI keeps climbing the charts. I can’t say for sure what will happen next with any crypto project, obviously, but I do think that as long as there are projects like XRP and Cardano in front of UNI, this DeFi blue-chip certainly has more room to climb.
This post is published for Cryptowriter in association with Voice.