UNI, the governance token of Uniswap, the most widely used automated market maker in the DeFi market, saw a significant increase with the launch of Uniswap V3 on March 23. Over $ 35, UNI gained almost 23 percent in one week.
The Uniswap team explained:
“We are excited to present the introduction of Uniswap V3 today. We aim to launch it on the Ethereum mainnet on May 5th and launch on Optimism shortly thereafter.”
Reaching a market value of $ 17 billion, UNI surpassed altcoins such as Litecoin and ranked 8th, just after XRP, which ranked 7th with a market value of $ 25 billion.
Why has UNI gained a strong momentum?
There are two key reasons for UNI’s huge rally in the past two months.
Coinbase’s initial public offering in the US triggered the rise of stock market tokens and automated market makers.
Second, the overall increase in interest in the DeFi sector has boosted the value of major automated market makers such as Uniswap and SushiSwap.
UNI hit an all-time high of $ 35.2 on March 21, thanks to the Uniswap V3 excitement.
Intotheblock analysts, he explained as follows:
“Uniswap’s governance token, UNI, rose to an all-time high of $ 35.2. The protocol’s transaction volume reached $ 73.1 billion on 78 days of 2021, and the locked-down value reached $ 5.23 billion.”
Its investors and analysts think Uniswap V3 will lead to DeFi and Uniswap boom.
Anonymous investor named “Johnny”, stated that:
“With the full launch of UNI v3 and ETH 2.0, I think we will see a much larger Uniswap boom than we’ve seen in the summer.”
However, this rise of UNI has been temporary. UNI, which has lost nearly 10 percent in the last 24 hours as of the time of publication, is trading at $ 31.