Price Predictions

Uniswap Price Prediction: 30 December 2021

Uniswap Price Prediction

Overview

In the world of centralization, crypto trading was also based on centralized platforms like Coinbase, Binance, etc. With the launch of Uniswap, the crypto industry was introduced with yet another world called ‘Decentralization’. Uniswap is one of the most popular decentralized exchanges which does not involve any 3rd party involvement while carrying out any transactions. And hence the transactions done here no doubt are recorded on the blockchain but remain completely anonymous. 

UNI, the native and the governance token of the Uniswap platform, also had a bombastic inception in the crypto market. After swinging within narrow highs and lows, the asset managed to smash its highs but remain a little short in attaining the $50 mark. Ever since then, the UNI price is utilizing its every strength to close the yearly trade on a bullish note, but woefully, the year 2021 could end on a huge bearish note for the entire crypto space.

Brief Introduction to Uniswap 

Uniswap is a decentralized, open-source exchange that works on the concept of Automated Liquidity protocol. The exchange isn’t owned by any single person or entity which ensures the safety of the assets as, unlike the other exchanges, Uniswap does not require the traders to hive up their control over their private keys. No doubt Uniswap is thriving among the other competitors, yet it tends to remain the leader of the DEX. 

The Uniswap platform was built in 2018 on Ethereum blockchain and hence it’s compatible with ERC-20 tokens and also decentralized wallets like Metamask, Trustwallet, etc The listing of coins on Uniswap is very easy and cost-effective compared to that of the other centralized platforms which are profit-driven. 

Interesting Fact: Uniswap since its inception has registered more than $700 billion in trading volume, $83 million-plus trades, more than 300 integrations and 4,400 plus community delegates.

Additional Read: Pancakeswap vs Uniswap 

How Does Uniswap Work?

Uniswap as mentioned above works on the concept of Automated Liquidity Protocol which incentivizes the people who trade on the exchange to be Liquidity Providers(LPs). The users combine their funds to create a pool of liquidity which is further used to execute trades on Ethereum. 

Every token which is listed has its pool and the price is also determined by using a unique algorithm that considers the highest buyer and the lowest seller using an Automated Market Maker(AMM) instead of an Order Book. The price of the token depends on the ratio of coins present in the pool. 

Whenever a token is listed on Uniswap, an equal amount of the token and any other ERC-20 token like ETH is mandatory to stake to start with a liquidity pool. The larger the liquidity pool is, the easier it would be to trade for that particular token. 

Recently, version 2, Uniswap v.2 went live which sends 0.05% of the 0.30% of the trading fee to the Uniswap fund as a reserve for future development. However, it can be turned on or off through a community vote which is currently turned off. 

If in case the liquidity provider wants to exit the pool, then he will be receiving a portion of the total fees from the reserve staked in that pool. 

Will Uniswap(UNI) Price Hit $50 in 2021?

The UNI price had a monstrous rally since the beginning of 2021. It had already gained immense popularity ever since the native DEX rewarded each of its customers 400 UNI tokens for free. It started the trade with a price of just $2 and went on surging to hit the ATH at around $45.However, due to the negative impact of the external factors, the market witnessed huge plunges and UNI price also slashed to its lower levels around $13. 

The DeFi token since then had a very calculated approach to regain the lost positions. No doubt it tried its level best to leap long yet could manage to hover around $31 only following huge consolidation. As the year-end is fast approaching, it was expected that the crypto space would make a large move. But woefully, almost all the assets including the UNI price are about to have a notable bearish end. At the press time, UNI price is around $17, and with the same pace, it may reach up to $25 or a maximum of $28 to end the 2021 yearly trade. 

Additional Read: Uniswap Technical Analysis

Factors Affecting Uniswap(UNI) Price Today

Uniswap – A crypto and an Exchange

Many cryptos do have their native exchange or platform but being as popular as the platform matters a lot. Uniswap is among the top DEX which runs on the Ethereum blockchain, while UNI is also among the top 5 DeFi tokens in the crypto space. 

Smart Contract

The prices of the tokens are determined using a mathematical formula yet the trades are executed using a Smart Contract. These are nothing but digital documents with predefined rules of the trade. The smart contract will be completed only if the criteria of the contracts are met. Importantly they do not have any human interference nor they can tamper. 

Lending

The traders who wish to lend their crypto on Uniswap get rewarded by getting a discount on the gas fees. However, the condition remains the same that he needs to lend equal amounts of the trading pair. For example, if a trader wants to lend a UNI/ETH pair then he needs to lend an equal quantity of both ETH and UNI.

Constant Developments

The technology behind Uniswap has witnessed constant changes as and when required. The primitive version of Uniswap DEX was upgraded to Uniswap V.2 with improved features like allowing wrapped ETH in core contracts against using only ETH. As the gas fees became a major constraint, Uniswap rolled out Version 3 which is built above V2. 

NFT’s

The price of each token on Uniswap is determined by the LP position which is very unique. And hence these positions are not fungible anymore. And hence each LP position will be portrayed as a Non-Fungible Token(NFT).

Where & How to buy Uniswap(UNI)

UNI is a very popular and among the largest DeFi tokens in the crypto space and hence is widely available for trade on almost every platform. However, along with ease of trade, affordable rates, one can have ease of trade, here in CoinDCX. It’s India’s most trusted cryptocurrency exchange and also the first crypto unicorn.

The best part is the CoinDCX app which provides a wide range of crypto-assets at a single touch. Just download the App and register yourself keeping your personal and bank details ready. And importantly, do not forget to complete your KYC!!!


Disclaimer: The above views, information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational/ educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, digital assets/ cryptocurrencies or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


 

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