Cryptocurrency (Mar 08, 2021 07:30AM ET)
Uniswap Surges 50%, Takes DeFi Into Crypto Top 10 List
- UNI surged 50% and became the first DeFi token in the Crypto top 10.
- Uniswap recorded monthly trading volumes of over $30 billion in February alone.
- Also, analysts believe that Uniswap V3 is imminent.
Uniswap’s UNI has made history by becoming the first DeFi native token to make it into the crypto market cap top ten. UNI achieved the milestone amidst a 50% surge and new all-time high (ATH).
UNI 1-day chart (source: TradingView)
UNI started pushing upward with a 62% surge on Fed 21 to set a new high of $32.50. From then, the token experienced some downward pressure but managed to keep above the $20 mark. However, from March 2, UNI pushed upward in a 50% rise that led to a new ATH of $34.75 on March 7.
Based on Coingecko data, UNI is currently the 8th highest crypto by market cap. The DeFi token now outranks Litecoin and Chainlink with a $17,969,823,791 market cap at the time of writing.
In addition, Uniswap currently dominates the DEX market by 21%, only behind MDEX, which has a 40% market share.
Notably, UNI has managed to break trading volume records amid ever-increasing Ethereum gas fees. In fact, DEX trading volume recently surpassed $120 billion this year alone. Of note, ETH-based DEX accounted for $63 billion in January.
As an ETH-based DEX, Uniswap was not exempt from both high trading volumes and fees. In February, UNI recorded a monthly all-time high of $31,9 billion.
Also, analysts believe that Uniswap will soon launch its V3 protocol. Speculation has been partly fueled by Uniswap CEO Hayden Adam’s recent Twitter activity. Adams recently posted a poll asking followers where they would read a V3 announcement.
When Uniswap v3 details are announced which will you read first?
— Hayden Adams (@haydenzadams) March 4, 2021
Uniswap V3 protocol is expected to help solve current slippage and capital efficiency problems. Analysts expect V3 to achieve this by integrating Layer 3 scaling. A few smaller DEXs, like NewDex, already use Layer 2 scaling. As a result, these smaller DEXs are faster and cheaper. Thus, anticipation of the V3 launch could help push UNI higher.
This article first published on coinquora.com