The Uniswap governance token is everywhere in the cryptonews lately, only because it managed to become the first DeFi token among the ten largest cryptocurrencies by market cap. While UNI surged by more than 50% in one week, analysts are positive that the surge will continue, making UNI even more popular among the top crypto assets.
For those of you who don’t know, UNI is the native token of the decentralized exchange Uniswap and right now the eight largest cryptocurrency with more than $17 billion in its market cap. The exchange’s coming V3 overhaul is apparently what drove the price of UNI up lately.
Additionally, rankings from Messari show that UNI is the second largest Ethereum based asset by market cap behind Tether, with which it beats out the Chainlink coin by nearly 50% of its capitalization. While UNI surged by more than 50% in a week, many other cryptocurrencies were in a standstill.
— Uniswap Labs 🦄 (@Uniswap) February 15, 2021
With this, UNI became the first native token of a DeFi DApp to succeed like this. In only 24 hours following March 5, the coin’s capitalization increased from $8.8 billion to around $15 billion, as the historic snapshots show.
Currently, the price of UNI is at $33.29 and the coin is expected to visit the $34 and $35 grounds today or tomorrow. The last spike that it had was around $33.9, which will be attempted again if the trend continues.
In addition to this, the altcoin news show that Uniswap’s initial token distribution saw UNI tokens being airdropped proportionally to liquidity providers. At first, 400 tokens were sent to every wallet that interacted with the DEX as of September 2020. At the time of writing, 400 UNI tokens are worth more than $13,000.
All of this shows that UNI had a record month for trade volume, but also plenty of records on the exchange itself. In February, the weekly Uniswap trade broke even four records as UNI surged by more than 50% this week alone. The monthly all-time high of $31.9 billion in volume was what made this cryptocurrency ultra popular among new investors.
The upcoming V3 upgrade that is being hyped in the UNI world is also not too far away. Yearn Finance developer Andre Cronje speculated that an increase in social media activity from Uniswap could also suggest that the new version is coming soon.
When founders/core contributors start posting more actively on Twitter, it normally means they finished a milestone and are waiting for the release, this is the "limbo time" where they don't want to start something new yet. I've noticed @haydenzadams post frequency increase 👀
— Andre Cronje (@AndreCronjeTech) March 4, 2021
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