Why does the price of uni keep falling (Is uni valuable)?

08/12/2023 15:43 • Metaverse Matters • 109 views

Why does the price of uni keep falling? UniSwap is a decentralized exchange generated through UniSwap’s liquidity mining. By providing liquidity to trading pairs, users can earn high rewards and incentives. Users can also trade other tokens on the Uniswap platform. The UNI token had a noticeable price trend since its launch. However, historical data shows that the UNI price has consistently been falling. Therefore, many investors believe that as the market downturn continues, the price of UNI will keep falling.

Is uni valuable?

Editor’s note: This article is from BlockBeats (ID: BlockBeats) and authorized for reprint by Odaily Star Daily.

UNI is the governance token of the decentralized exchange UniSwap. It is a decentralized stablecoin and smart contract platform based on the Ethereum blockchain. Its goal is to make trading simpler, more efficient, and valuable in a decentralized manner. UNI was launched on January 7, 2020, and had a peak increase of over 200%. (Image source: UniSwap official website)

Currently, uni’s price is approaching $1000, and its market value exceeds 10 billion RMB. However, the market value of UNI is still relatively small, with only 400 UNI held by 20,000 addresses, which is equivalent to the number of ERC-20 tokens ETH on the Ethereum network. Therefore, this is only a preliminary estimate and not a prediction of the project’s initial launch. If we carefully examine UNI’s price trend, we may find certain risks, such as the recent occurrence of numerous airdrops on UniSwap leading to user theft. However, according to statistical data, the total value of assets locked in UniSwap has reached approximately $400 million. Therefore, I believe that the market value of UNI may not be less than $1 billion, or at least reach $4 billion or even higher. How much is the circulation of UNI? What is the total supply of UNI? First, we need to understand UniSwap’s liquidity provision protocol.

UniSwap is an Ethereum-based automated market maker platform developed by ConsenSys, aiming to conduct cryptocurrency trading using a method called “order book” and utilizing market spreads of cryptocurrencies as incentives.

UniSwap was initially developed by ConsenSys and later invested in by the Ethereum Foundation, then renamed as Ethereum Classic (ETC).

However, as the UniSwap community’s attention and participation in the project increase, its governance mechanism has also been strengthened. As of now, nearly 500 people have applied to become validators or delegators to run the UniSwap protocol, and they are now working to establish their own token economics. Will the Uni token bring more market demand? If we follow this logic, there will be several types of people who would want to acquire the UniSwap governance token.

This article and pictures are from the Internet and do not represent SipPop's position. If you infringe, please contact us to delete:https://www.sippop.com/23492.htm

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Why does the price of uni keep falling (Is uni valuable)?

Is uni valuable?

Related recommendations