Trading and swapping coins for another can be arduous, confusing, time-consuming, and not cheap. Wouldn't it be great if there was a protocol out there that not only allowed you to exchange or swap tokens but is also super easy to use? Oh, wait. There is! It's called Uniswap, and their token is UNI.
To say there was a buzz about this project and token when it launched back in September of 2020 is an understatement. There was great hype around the project prior, with its token listed in several exchanges in mere hours, and saw trading volume reach over $5 Billion in a day! But why? What is it about Uniswap that got everyone so excited?
This article will attempt to answer that question and provide a Uniswap price prediction for both the short and long-term over its token to get a greater understanding as to why the UNI token continues to be so bullish.
Uniswap Historical Price Analysis
Although the decentralized exchange (dex) has been around since 2018, it wasn't until 2020 when the UNI token came into existence. When it was first released on September 16, it had an initial price of just $3.00. However, because of the ferocious hype surrounding it, Uniswap price drastically increased up to $7.00 by September 19, 2020, according to CoinMarketCap.
After the hype and excitement began to wind down, the price also began to fall, but it did not experience a drastic fall than other tokens, nor was its all-time low after the fact. Its all-time low was at $1.03 on September 17, 2020, before its price increase, according to CoinGecko. Although, CoinMarketCap states its all-time low to be $0.4190 on that same day. It experienced its all-time high of $8.44 only a day after it began to calm down and decline.
UNI's price continued to decline as the months rolled by, although it never went below $2 before it again began to slowly increase in price, thanks to the 2020 bull run. UNI finished the year 2020 with a price of $5.00. Since then, it continued to increase, with it now being on the verge of surpassing its former all-time high.
Current Price, Market Cap, & Supply Details
At the time of writing this article, the price for one UNI token is currently $7.44. It's currently ranking at #20 within the entire crypto market. It has a market cap of $2,070,905,210 with 277,250,381 UNIs currently in circulation. It's max supply is at 1,000,000,000.
Uniswap (UNI) Future Price Forecast Predictions
It would seem that the hype around Uniswap never really subsided. Wallet Investor is currently scaling the UNI token at very bullish. This is not surprising given the popularity of the platform. Even when it experienced a fork back in early September 2020, giving birth to the rival and controversial dex called Sushiswap, the automated market maker (AMM) continues to be highly utilized, with it being the go-to dex for any new user who is just entering the crypto market.
Short Term Forecast
Long Term Forecast
Uniswap Price Prediction 2021
The price forecast for the year 2021 looks very positive. It is expected that by the end of the year, any UNI hodler can expect a 49.39% increase from the current price.
Uniswap Price Prediction 2022
2022 looks even more positive as it has been forecasted for the price to continue rising. It is predicted that by June, any investor can expect an almost double price increase.
Uniswap Price Prediction 2025
2025 doesn't appear to be any different, other than being more highly positive. Investors can expect an average 194.45% increase from the current price.
Is Uniswap a Good Investment?
After reviewing several price forecast sources and examining the protocol's fundamentals, it can be said with much confidence that investing in Uniswap is a good investment. Even though the hype around the token has declined considerably, that did not mean the demand for it also declined. Wallet Investor, Digitalcoin, Tradingbest, and others have all forecasted UNI's highly positive price outlook. If you get a chance to look at the protocol's and token's fundamentals, it is not hard to see why it is so.
How to Buy Uniswap?
UNI can be purchased from several different exchanges. Currently, you find it listed on Binance, Coinbase Pro, Uniswap dex itself (V2), Bithumb, etc. Many of these exchanges have high UNI liquidity, so you don't need to worry about sudden price slippage. You can hop over to CoinMarketCap or CoinGecko to get a full listing of exchanges that list UNI.
More Information About Uniswap
What is Uniswap?
Uniswap is a decentralized exchange platform (DEX) where users can do two things; exchange or swap tokens for another and/or provide liquidity.
To exchange or swap, you need to first make sure you are in the platform's swap section. Then you connect the platform with your wallet, click on the tokens that you want to swap for, pay a minimal fee, and that's it! It is that easy.
Users can also add liquidity to the platform by going over to the liquidity section. You then have the option to either add liquidity to an already existing pool or create your own liquidity pair. The fees that users pay when they swap tokens go to the liquidity providers, who earn 0.30% of the fees proportional to how much liquidity they provide. To withdraw those fees, now an interest, users need to withdraw the token they added liquidity. Again, it is as simple as that!
A fair warning, though! Users adding liquidity may be at risk of impernance loss. What is that? It is when liquidity providers face a loss due to price divergence. As the name implies, this loss can be reversed when one of your tokens' price mitigates itself. However, that is not a guarantee and can result in permanent loss.
The Uniswap dex was launched in November 2018. Being automated and depending on smart contracts, Uniswap solved many of the initial issues that plagued that first decentralized exchanges. On September 16, 2020, the protocol went a step further when it began issuing the UNI governance token to many past users. This increased profitability and allowed any token UNI holder to have a say in the governance of the protocol, providing further decentralization.
UNI as a Reward and Governance token
When Uniswap was first created, it didn't have a token and, other than providing liquidity, didn't have much other incentive. It was only after the Sushiswap fork and its vampire mining method that Uniswap announced its own token release, called UNI.
While a good portion of that supply went to developers and investors, what caught the attention of everyone was when Uniswap announced that 15% of the entire 1 billion UNI tokens that were minted were to be airdropped and given to anyone who had a historical record of using uniswap before the 1st of September 2020. This allowed any address to claim 400 UNIs.
In addition to that, anyone who provided historical liquidity was also airdropped a pro-rata share based on the time and amount of liquidity that was provided.
However, this was only 15% of the total supply. Anyone who wanted to get their hands on some UNIs had to either buy some from an exchange or provide liquidity. Anyone who does the latter, there are only four liquidy pools that would reward users with UNi:
- ETH – USDT (Tether)
- ETH – USDC
- ETH – DAI
- ETH – WBTC (Wrapped Bitcoin)
This program only runs for two months, up to November 17, 2020. Yet even more so, to be rewarded a substantial amount of that UNI, you would have to supply a rather large amount of ETH or stablecoins or wait a very long while. That is why it's much simpler to buy UNI at an exchange, allowing demand to be created, which led to its price increasing. So, you can understand how much excitement there was around the crypto community regarding Uniswap.
In addition to this, Uniswap holds a substantial amount of UNI in reserve to incentivize users as a reward to provide liquidity and participate in governing the protocol. UNI holders have a say on which direction they would like Uniswap to go. Those that hold about 1% of the total supply of UNI can even submit proposals. It is assumed that those having a say in governance would be incentivized to make the protocol more attractive, increase its volume in trade, and create further demand for the token, which will obviously increase in price.
Developer Hayden Adams created Uniswap. A former car engineer, Hayden was laid off from his job and left in purgatory until a friend introduced him to cryptocurrency, especially Ethereum. Intrigued, he learned to develop code and worked on many projects before coming across the previously dominant decentralized exchange called EtherDelta.
Hayden was not impressed with the dex. It looked…complicated and crude, and thought it could be improved. However, what actually set him to begin working on a project of his own was when he came across a Reddit article by the founder of Eethereum, Vitalik Buterin, that read, ‘Let’s run on-chain decentralized exchanges the way we run prediction markets.'
Inspired, he began to work on his own dex, and after many months of intense coding and only being given a grant of $65,000 from the Ethereum foundation, he released his first version of Uniswap in November 2018. A version 2 was launched in March of 2020, making it more secure and robust and making it the iconic dex platform possible in all Ethereum ecosystems.
Given the reward potential for buying and holding UNI, it is not surprising that its price has been steadily increasing. And with the current bull market in full swing, it can be confidently stated that UNI's price will go into overdrive. With the protocol being so easy to use, it is an alternative source for users to earn passive income, both in fees and UNI.