Is Uniswap A Good Buy?

Last Updated January 21st 2022

8 Min Read

Is Uniswap a good buy, and should I consider investing in the token today? Based on the barrage of questions coming our way about Uniswap UNI, it seems like everyone is looking to diversify into a cryptocurrency that is not Bitcoin. And the recent DeFi explosion may have turned crypto investor attention to the newly created Uniswap tokens.

But is it a sound investment? Both its well-thought-out design and the attention the DeFi ecosystem in which it operates point to a bright future. It also has the advantage of being the native coin for one of the fastest-growing decentralized exchanges. You may be right to assume that it might replicate the Binance exchange coin – BNB – success in the future, which makes it a good long-term investment.

But like all other cryptocurrencies, Uniswap prices are highly volatile. On multiple instances, it has reported sudden price jumps and equally sudden unexplained drops. It has also been accused of being an afterthought and a reactionary move to Sushiwap’s launch of the Sushi token.

How do these affect UNI prices, and should you consider investing in the coin today?

By the end of this guide, you will be better equipped to make an informed buy or wait-and-see decision on Uniswap UNI investing.

Read on…

So, Should You Buy Unsiwap?

Uniswap token has the backing of one of the most innovative decentralized apps. It explains why the token prices were up by more than 8,000% less than eight months after its launch. Interestingly, Uniswap hasn’t always been too keen to list the native token for their exchange. It took them two years of operation and a competitor to push them into launching the coin.

But not DEX’s reluctance or Sushiswap’s competition stopped UNI from being one of the biggest crypto successes for 2021. At the time of writing this, the reactionary token created to wade off competition is ranked 23rd on the list of largest cryptocurrencies with an $8 billion market cap.

In a sea of hype-driven but visionless popular cryptocurrency projects, Uniswap injects a ray of hope. Particularly to the elite crypto enthusiasts and long-term investors looking for value. And this explains the massive interest in the coin – as evidenced in the average circulating supply of 611 million tokens.

But this is not to say that it hasn’t benefited from the said hype and meme-driven price jumps. For close to a year now, the crypto investment focus has shifted to the Eth-based DeFi ecosystem. Investors have ballooned the DeFi pulse from a mere $700 million in June 2020 to over $92.36 billion today.

In the process, tokens in the industry like Uniswap have seen their prices explode.

This DeFi wave has had everyone, from investors to crypto analysts and celebrities talking. Mark Cuban, for instance, recently compared to the DeFi wave and its potent for significant future upsides to the early days of the internet.

But this isn’t the only thing influencing and expected to drive Uniswap prices moving forward. UNI token prices are still highly correlated to the larger crypto market swings. And the market has been on steroids for the better part of the year.

Is Uniswap worth buying? Its design, the industry in which it operates, and industry players seem to conclude that it is a good long-term buy.

But with limited data about both the token and its parent company, it is hard to estimate its actual worth today. There, therefore, is no telling how long it takes before its prices come tumbling.

Before you make your purchase, ask yourself if you can stomach a wild price drop. Importantly, study the DeFi crypto hype and monitor your UNI asset price action when this hype starts dying down.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Why Is Uniswap So Popular Now?

You would not be wrong to say that Uniswap has always been popular. After all, it has only been around for a little over a year.

The fact that it is the native token for one of the second largest but most innovative decentralized exchanges gave it a major boost. Similarly, the exit scam carried out by its fork’s – Sushiswap – creator saw most investors turn to UNI, despite the late launch of the tokens.

Did you know that the idea of Uniswap – or at least the Automated Market Maker (AMM) protocol for handling DEX liquidity – was first suggested by Vitalik Buterin? Do you also know that it was actualized by a renowned Ethereum developer – Hayden Adams? The two interesting facts have been quoted widely and used to give the exchange and the UNI tokens credence.

Additionally, sound bites and quotes from celebrity investors about the DeFi environment have also helped put the ecosystem in the media headlines, earning it new followers. And with UNI’s dominance in the space, it is only right that it benefits immensely from this new following and investor funds.

In this next section, we look at the impact that the token’s newfound popularity has had on its prices.

Check Out: Could Uniswap (UNI) Be a Millionaire Maker Coin?

How Much Is Uniswap Worth Today?

At the time of writing, the Uniswap token is down 8.38% in the last 24 hours and is trading at around $14.14.

If the market optimism and investor confidence in the future of the crypto is anything to go by, then the UNI tokens are grossly undervalued. These pundits believe that the steep ascension with which UNI tokens reached the current price level will continue into the near future.

That makes today the best time to start accumulating your UNI stash.

And there is no shortage of crypto exchanges supporting the seamless purchase, trade, and storage of the UNI token - as we will illustrate below.

First, though, we ask ourselves whether the UNI token can break above $100 in the next few months.

Will Uniswap Reach $100 In 2022?

Look at the charts, and one Uniswap truth stands out clear. The enthusiasm and wild momentum with which Uniswap price action soared last year has been tempered.

But crypto traders are still convinced that Uniswap prices will continue soaring – just not as high as they anticipated earlier in the year.

The Italian cryptocurrency exchange site Previsioni Bitcoin is most optimistic about Uniswap’s price action in 2022. And even they don’t believe that the UNI token will reach $100. Their analysis shows Uniswap UNI token at $22.29 in December. They can only expect the UNI token to breach the $100 mark sometime after 2024.

But if the unpredictability of the crypto industry has taught us anything this far, it’s that cryptos are too volatile to predict their future prices accurately.

So, how do you buy your first UNI token?

Don't Miss: Uniswap Price Predictions

How To Easily Buy Uniswap On eToro

The fact that you have come this far says that you think of Uniswap as a good buy. So, why not take this further get yourself a few UNI tokens? We recommend eToro as the best platform for buying UNI tokens because it is easy to use and integrates a free and highly secure wallet.

Follow these steps to make your UNI purchase on eToro:

Step 1: Create and verify a trader account on eToro.

Step 2: Deposit funds into this account – the minimum deposit is $200.

Step 3: Choose a crypto trading pair. For instance, since you have a USD balance, choose the USD/UNI pair.

Step 4: Customise the trade by of entering the amount of UNI tokens you wish to buy and complete the transaction.

That is all it takes to own UNI tokens.

Please check out our guide on how to trade Uniswap for other cryptocurrencies on the platform. It is more complicated than making a purchase, but we break it into simple, actionable steps.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Conclusion

Understand that cryptocurrencies are highly volatile, risky, and make losing your investment easier. They are quite different from stock, bonds, and other conventional investment methods. It is, therefore, imperative that you research extensively about a cryptocurrency before making a purchase.

While there may be a lot of chatter about Uniswap and its potential for future growth, we advise that you avoid emotional investing. Take time to research the Uniswap UNI token and familiarise yourself with the crypto industry and the factors influencing UNI prices before making your purchase. Importantly, start small and only invest what you can afford to lose.