Uniswap and UNI Token: Let us dig deeper
Uniswap is leading decentralized finance (DeFi) platform that allows people to swap their tokens and trade digital coins. The network was initially launched on Ethereum, but its developers have expanded it to Polygon, Arbitrum, and Optimism.
The flagship service that Uniswap offers is that it lets people swap coins at a lower fee and in a decentralized manner. At the same time, it has another feature that allows people to provide liquidity and earn money by doing that.
Further, Uniswap has also become a platform where people can build their own decentralized applications in the financial industry. According to DeFi Llama, Uniswap has a total value locked (TVL) of over $7.4 billion, making it the 7th biggest DeFi platform in the world.
Like most DeFi apps, Uniswap has a governance token known as UNI. The token has a market cap of over $3.7 billion and is the biggest DeFi token.
Uniswap (UNI) price history and technical analysis
Uniswap was among the first DeFi platforms around, which helped its UNI token jump to an all-time high of $48.95 in 2021. At the time, the token was also one of the biggest digital coins in the industry.
However, between May 7th 2021, and April this year, the coin had fallen by more than 83% and its ranking slipped to 32nd. The drop happened as its TVL dropped from over $10 billion. Most importantly, competition started rising, with projects like Anchor Protocol, Curve Finance, Lido, and Convex Finance gaining a strong market share.
On the daily chart, we see that the Uniswap price has been in a strong bearish trend since May 2021. The coin managed to move below the important support level at $12.90, which was the lowest level on May 21st. It has also dropped below the 25-day and 50-day moving averages (MA). It is also trading at the important support at $7.97, which was the lowest level this year.
Therefore, the path of the least resistance for the UNI price will be lower, with the next key support being at $5.
Uniswap (UNI) price prediction for a year
UNI and other DeFi tokens have been pressured in the past few months as competition in the DeFi industry has risen. The sell-off has also correlated with that of other cryptocurrencies and American indices like the Nasdaq 100 and S&P 500. This drop has been because of the rising fear that the Federal Reserve will deliver a series of high interest rates this year.
In times of high interest rates, it is always recommended against going against the Fed. Therefore, as shown in the daily chart above, there is a possibility that the Uniswap token will continue falling in 2022 as long as the Fed is maintaining a hawkish tone. According to Long Forecast, UNI price will continue falling in 2022 and then end the year at $3.60. Another estimate by Digital Coin Price is that UNI will average $11 this year.
Uniswap (UNI) price prediction for 2025
The next few years will be important for Uniswap and other DeFi tokens. For one, regulators are expected to tighten the screws in the industry because of the risks in the sector. Further, there are security and competition-related risks.
Still, there is a high possibility that its large ecosystem growth will push the coin significantly higher by 2025. Digital Coin Price estimates that Uniswap will average $16 in 2025. This price is almost double where it is today. Long Forecast’s model is a bit dovish since it estimates that the coin will drop to $7 in December 2025.
Uniswap (UNI) in questions and answers
Is UNI coin real?
Yes. UNI is a real coin. It is the governance token for the Uniswap ecosystem.
Will Uniswap reach $100?
Uniswap is trading at $8, which means that it needs to pass its all-time high of $47.9 and then more than double from there. While this is possible in the long term, I don’t see it happening in the coming months.
Should I buy UNI coin?
Uniswap’s UNI token has been a disappointing cryptocurrency in the past year as its price has crashed. But there is a likelihood that the coin will bounce back, which makes it a good way to bet on the growing DeFi industry.
How much will Uniswap be in five years?
The next five years will be a bit volatile for UNI because of regulatory and monetary policy risks. Still, as the DeFi industry grows, there is a likelihood that the coin will continue rising. A possible target is the one offered by Digital Coin Price expecting it to be at $16.
Where do I buy Uniswap (UNI)?
Uniswap is a popular coin. As a result, it is possible to buy the token in most centralized exchanges like in Coinbase and Binance. One can also swap the token on Uniswap’s platform.
This article represents the views of the author. Cryptocurrencies are highly speculative assets, and the author will not be held liable for any losses.
