Uniswap (UNI) token broke a record! Here are 3 factors that made the record

Uniswap (UNI) token has seen a rapid rise recently. The UNI price has advanced at $ 4 for weeks and has increased by 335 percent since the beginning of 2021. On January 27, the UNI price reached an all-time high of $ 15.35.

Especially in late October 2020, the sharp rise in the decentralized finance (DeFi) market contributed to the increase in the UNI price.

4-hour chart for UNI / USDT pair. Source: TradingView

The driving force behind the increase in the UNI price can be categorized into three items: the increase in daily volume traded on the platform, the increase in the total locked-down value of the platform, and the introduction of management features as the launch of Uniswap v3 approaches.

Total value locked continues to rise

The total amount of locked assets (TVL) in the DeFi protocol is one of the basic data used to determine how robust the project is and how much interest the community is.

The rise in TVL value reveals that platform users rely on the platform enough to deposit their funds to earn rewards and liquidity pools offer a better alternative than other exchanges in the industry.

The Uniswap platform reached an all-time locked amount of $ 3.16 billion on January 24.

Total value locked in Uniswap. Source: Defi Pulse

Uniswap is currently the top-ranked decentralized exchange (DEX) for TVL. When it comes to lending, the platform ranks fourth in this area, after names such as Maker (MKR), AAVE, and Compound (COMP).

Uniswap trade volume goes head to head with central exchanges

The second factor contributing to the UNI’s recent rise is the significant increase in trading volume in the stock market.

Uniswap data shows that the daily volume on the DEX has been consistently over $ 400 million since the beginning of 2021, rising to $ 1.3 billion on January 11. This volume has brought Uniswap head to head with the best centralized exchanges.

24-hour Uniswap trading volume. Source: Uniswap

Transactions on Uniswap outperformed their direct competitors, Kyber Network and IDEX, according to data from Dune Analytics.

Monthly decentralized exchange (DEX) trading volume. Source: Dune Analytics

Since then, the number of DEXs has continued to grow, but until March 2020 Uniswap has declared itself the most preferred choice for traders.

V3 announcement creates excitement for UNI token

Many airdrop followers prefer to sell their tokens for a profit shortly after they receive them. However, if they wish, those who hold the tokens seek extra benefits by having governance features.

Uniswap Treasury is currently at the level of $ 500 million. Recently, Uniswap founder Hayden Adams asked the community for feedback on UNI’s governance capabilities.

As the delegate list for the Uniswap platform continues to grow, the demand for the UNI token is likely to increase as more UNIs are locked onto the platform for governance purposes.

The opinions and comments expressed here belong only to the author. It may not reflect the views of Cointelegraph.com. Every investment and trading transaction involves risk. When making your decision, you should do your own research.

Check Also

Bitcoin price is above $ 40 thousand again!

Bitcoin (BTC) returned to the level of $ 40,000 on Wednesday. 1-hour candlestick chart of …

Leave a Reply

Your email address will not be published. Required fields are marked *