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.
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
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Source: Cryptocurrency - investing.com
