Is Uniswap (UNI) Cryptocurrency A Buy Right Now?

Last Updated May 23rd 2022

4 Min Read

Can the largest decentralized exchanger, Uniswap be a millionaire-maker coin for investors? Let's find out.

By challenging traditional exchanges confined to DeFi protocols, Uniswap has revamped how the crypto industry works. From one-to-one trading using liquidity and smart contracts to DeFi systems protecting investor funds, Uniswap has addressed all the crucial concerns of a digital trader. Moreover, the platform plays a vital role in the DeFi space, making the asset highly popular among crypto enthusiasts.

The UNI token was a hit with crypto traders throughout 2021. However, the decentralized exchange (DEX) token started 2022 on a downturn as the general crypto market declined. So is Uniswap still a buy, hold, or sell right now? Let’s talk about that.

A Market-Beating Cryptocurrency — But For How Much Longer?

Investors are still interested in UNI, thanks to its impressive performance.

Uniswap stands out in the crypto market as the biggest and the first DeFi crypto exchanger based on the Ethereum blockchain. It uses smart contracts to connect traders and investors for added fund security and trading independence to cancel the middleman.

Uniswap exchange has successfully removed the hassle of KYC standards for users with its unique Ethereum decentralized Automated Market Maker (AMM) protocol. AMM eliminates the need for KYC by deciding the coin’s price or trade through supply and demand metrics.

Additionally, UNI’s concentrated liquidity allows individual liquidity providers to have granular discretion over the levels their capital is deployed to. All the individual holdings are combined into a single pool, offering a single composite curve against which customers can trade.

2021 was indeed a great year for Uniswap, with a $100 billion trade in a record-breaking week of the year. Analysts are extremely bullish about the UNI token in 2022, predicting that it will rise even higher by the end of the year.

Don't Miss: 11 Reasons Why You Should Invest In Uniswap Today

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

The Road Ahead For Uniswap

Uniswap is a high-risk investment but with plenty of room to grow, making UNI a profitable long-term investment.

Uniswap became a successful DeFi business in early 2021. With over a billion dollars of cryptocurrencies staked on the platform, it is the most active exchange on Ethereum’s system. Investing in Uniswap is one of the greatest financial decisions any investor could make in the long term.

The Launch Of UniswapV3

Uniswap was always consistent with its upgrades. Version 3 was relatively better than Version 2 as it provided up to 4,000 times capital efficiency. The upgrade took effect during Ethereum’s mainnet launch. It prevents slippage when transactions are executed. Also, users who want to become LPs by staking UNI can see more rewards through protocol fee sharing. Furthermore, high liquidity in Uniswap would eventually lead to an increase in volume on the exchange. As UNI is the token that fuels the DEX, increasing activity on the cryptocurrency would translate into a potential rise in the price of the UNI token.

The Launch Of Arbitrum

In August 2021, Uniswap introduced Arbitrum’s alpha version. This enabled customers to trade on the platform with reduced gas fees and rapid transaction confirmation. The Arbitrum network launched with support for over 33 assets. The developers said they would continue to add tokens to the network.

Zero Order Books

Uniswap has positioned itself as a unique cryptocurrency in the market. It distinguishes itself from other decentralized trading platforms in one significant factor; the Uniswap exchange has no order books.

Most platforms, whether centralized or decentralized, work with so-called order books. It allows users to exchange tokens by publishing an offer and hoping that someone will accept it. But with Uniswap the current exchange rates are automatically determined, which can increase the trading speed and simplify investing.

Is UNI A Buy, Hold Or Sell?

The rising demand for decentralized finance apps will eventually push the price of UNI to record highs in the coming years.

When it comes to alternative investments in the cryptocurrency sphere, Uniswap has checked off several boxes. What renders Uniswap a potential investment option is that both the project and its native token UNI have a lot of room to expand. There has been rising speculation that Uniswap will surpass US$1 trillion in total translation volume by the end of 2022.

One key factor that would influence investing in UNI this year is the potential return of liquidity mining. However, the vision of UNI is to leave footprints on the technological and functional eco-space, and the project has the potential to accomplish it.

Read Also: Uniswap (UNI) Price Prediction

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

A Cryptocurrency Under Close Watch — Now And Always

With continuous improvements in the Uniswap network, 2022 seems to be a good year for Uniswap.

Still wondering whether UNi is a buy, hold, or sell right now? Considering all that the Uniswap exchange has to offer, along with its continuous upgrades, UNI has solidified its position as one of the most profitable cryptocurrencies to buy now. It is supported by a highly qualified team of developers and the active community behind it.

Moreover, the promising market-making process not just lowers the risk and reduces the costs for all users in the network, but also technically allows anyone to seamlessly create a liquidity pool for any pair of tokens. Its huge potential is the main reason why analysts opine that investing in Uniswap could generate massive returns in the future.