Uniswap's UNI Token Surges 50% as Crypto Market Rallies
2min read Uniswap's price has experienced a significant rebound this week, driven by a surge in the broader crypto market. The UNI token has risen sharply over the past three days, reaching its highest point since March 28. This surge has propelled its market capitalization to over $4.2 billion, marking a nearly 50% increase from its lowest level this year.
This price movement coincides with a substantial increase in the volume of assets flowing into both centralized and decentralized exchanges. The surge in exchange volume is attributed to Bitcoin's recent rally, which saw it surpass $104,000 for the first time in months and cross the $2,000 barrier. Uniswap, the leading decentralized exchange, has seen a notable increase in its 24-hour trading volume, reaching $14.5 billion. Over the past 30 days, Uniswap has handled assets worth over $52 billion, significantly outpacing competitors like PancakeSwap, which processed cryptocurrencies worth over $35.6 billion.
Analysts predict that this volume will continue to grow if the crypto market bull run persists. According to some analysts, Bitcoin is expected to keep surging this year, potentially hitting resistance at $150,000. Other analysts from various companies expect the surge to continue, with Bitcoin potentially reaching over $200,000 in the next few months. A continued rise in Bitcoin's price would likely benefit other altcoins, as they often follow Bitcoin's lead. This growth positions Uniswap as one of the most profitable chains in the crypto market, having made over $336 million this year, surpassing other popular players like Ethereum, AAVE, and PancakeSwap.
Uniswap's price surge is also fueled by the continued growth of Unichain, its layer-2 network launched a few months ago. Unichain aims to provide developers with a superior blockchain for their DeFi operations, featuring instant transactions with a 1-second block time and the ability to transact across multiple chains. Unichain is community-focused, with 65% of its revenue returned to the community. This has attracted numerous developers, including Stargate Finance, Venus, Compound Finance, Velodrome, and DyorSwap, leading to a total value locked (TVL) of over $753 million and stablecoins soaring to $317 million. In comparison, Cardano, a chain that has been around for years, has only $30 million in stablecoins. Unichain has also become a significant player in the DEX industry, handling over $606 million in daily volume. Its transactions rose by 67% in the last seven days to $2.82 billion, bringing the cumulative total to $7 billion. Unichain has surpassed top players in the crypto industry like Sui, Avalanche, and Tron.
The daily chart of UNI price shows a pattern similar to many other altcoins, forming a giant falling wedge pattern, a popular bullish reversal sign. The coin recently formed a double-bottom pattern at $4,545, with its neckline at $6,060. A double-bottom pattern often leads to a bullish reversal. UNI price has crossed the neckline and moved above the 50-day Exponential Moving Average. Top oscillators like the Relative Strength Index (RSI) and the MACD indicators have continued soaring this week. Therefore, the most likely Uniswap price forecast is bullish, with the next point to watch being at $7.92, the 78.2% retracement level, which is 18% above the current level. A drop below the support at $6 will invalidate the bullish outlook and point to a crash to $4.55.
