Uniswap – the decentralized crypto exchange of choice among traders and investors – caused shock waves through the market with the launch of their native governance token called UNI.
The launch of UNI was unlike any other in that anyone who had used the platform to trade – or contributed to its liquidity – could receive a minimum of 400 UNI tokens by September 1.
Of course, this excited platform users who received a free $ 400 – $ 1,600 USD, with the token price fluctuating between $ 1 and $ 4 after the offer and distribution.
It is important to note that while some expected UNI to see a sharp sell-off due to the widespread distribution of somewhat valuable tokens, it appears that the buy-side pressure is greater than the influx of 400 token sell orders from the users of the platform.
Analysts now note that they expect the Uniswap token to see further upward in the near term.
One trader has specifically set their sights on a move to $ 5.00, which would mean a significant increase from the current price below $ 3.00.
The Uniswap Protocol UNI token offers platform users a windfall
Uniswap is at the forefront of the DeFi market adoption trend and is the platform of choice for both liquidity providers and token investors.
It’s important to note that the launch of their governance token was unlike any other with users of the platform essentially getting ownership of it through a 400 UNI token distribution.
In fact, some users who traded on the platform while it was in the V1 stage received far more than 400 tokens.
As for the cryptocurrency’s outlook, the benefit may be somewhat limited as it already has a diluted valuation of nearly $ 3 billion.
That said, most of the total supply won’t be released until years, making the current $ 177 million market cap quite low compared to the protocol’s total occupancy rate.
An analyst noted that its strength in the face of “insane selling pressure” seems to indicate that it is ready to see further upward.
UNI insane selling pressure, biggest drop in free money in cryptocurrency, all other alts bleed and price remains, why? Maybe it’s because it’s the most legitimate, respected and used thing in crypto right now. I don’t think that the price of Uniswap crashes badly … “
Trader: UNI token will likely rally to $ 5.00 next
At the time of writing, the Uniswap Token (UNI) is trading just below $ 3.00, which is a notable rise from the recent lows around $ 1.00.
An analyst believes that there could be a rally to new post-listing highs of $ 5.00 in the near term, with the chart below showing this possibility:
Image Courtesy of Mac. Chart via TradingView.
As long as the DeFi trend remains hot, so will UNI’s outlook.
Featured image from Unsplash. Charts from TradingView.