In the midst of a turbulent crypto market struggling to recover from recent crashes affecting major players like Bitcoin and Ethereum, the question of whether altcoins like Uniswap ( UNI) are worth considering becomes increasingly pertinent. Altcoin season, the period when alternative cryptocurrencies experience exponential growth, is eagerly awaited by investors seeking to offset losses incurred during bearish trends. Let’s delve deeper to analyze how worth UNI is for investment
Market Performance of Uniswap (UNI)
Having experienced an increase of 0.71% in value over the past day, Uniswap (UNI) is trading today at $9.96. However, the global crypto market decline trickled down to the token, with UNI dropping in price by 8.39% over the past week. Despite this bearish trend, the value of the token grew by 4.28% over the past month.
Uniswap token boasts of a market cap of $5.98 billion, securing a position of the 17th largest cryptocurrency, according to CoinMarketCap.
However, UNI witnessed a reduced trading activity by approximately 15%, to reach a trading volume of $154.47 million, over the past 24 hours.
Uniswap has $5.20 billion locked in total value, with a market cap/TVL ratio of 1.14, indicating a fairly good amount of liquidity and market involvement. Even though UNI reached its highest historical value of $44.97 on May 3, 2021, it has experienced a notable drop of 78.02% from that record high.
Understanding Uniswap (UNI)
Uniswap is a decentralized trading protocol that enables automated trading of DeFi tokens. Launched in November 2018, it has gained popularity in 2020 due to the DeFi boom. Uniswap aims to make token trading open and efficient by solving liquidity issues and awarding a governance token, UNI, to past users.
It incentivizes activity by reducing risk and costs. Uniswap V2 introduced new features in 2018, and Uniswap V3 in 2021 focuses on greater capital efficiency and infrastructure enhancements. The protocol eliminates the need for identity verification and allows anyone to create liquidity pools for token pairs.
UNI’s creation aims to establish Uniswap as publicly-owned infrastructure while maintaining its decentralized and autonomous nature.
Recent Developments and Partnerships
Uniswap has partnered with ZKSync to boost on-chain transaction capacity using zero-knowledge proofs. This collaboration allows users to enjoy faster and cheaper transactions compared to the Ethereum mainnet when using Uniswap. Users can conduct token swaps and provide liquidity on ZKSync through the Uniswap interface
By selecting the ZKSync network on app.uniswap.org/pool, users can easily establish new liquidity positions. This integration is expected to attract more liquidity providers to Uniswap due to lower gas fees and faster transaction times on ZKSyn.
Price Forecast of Uniswap (UNI)
Based on the technical indicators , the combination of short-term EMAs and MACD signals indicates a bearish sentiment, suggesting potential downward pressure.
Longer-term EMAs and Fibonacci support levels suggest historical support, potentially offering buying opportunities around key Fibonacci levels.
The RSI in neutral territory implies a lack of strong directional momentum currently, emphasizing caution for short-term trading strategies.
Support levels suggest potential price floors at 7.10936, 4.23772, while resistance levels highlight possible ceilings at 12.29669, 14.61238 and beyond.
Conclusion: Should You Invest in Uniswap (UNI)?
Ultimately, the potential value of investing in Uniswap (UNI) during altcoin season depends on different factors. In spite of recent price and trading volume fluctuations, UNI still holds a large market value and liquidity, establishing itself as a key player in the decentralized finance (DeFi) space. The protocol’s inventive improvements, including the incorporation of ZKSync to improve transaction efficiency, highlight its flexibility and growth potential.
Nevertheless, prospective investors need to take into account the existing bearish sentiment suggested by technical indicators and be cautious. The changing DeFi landscape highlights UNI’s importance, especially considering its past price fluctuations, indicating the need for careful investment tactics to succeed in its market. Hence, even though UNI has attractive attributes for investment, conducting thorough research and managing risks are crucial for making informed choices in altcoin season.