With the launch of its new protocol and its native token UNI, several crypto enthusiasts predict that Uniswap is going to explode in 2021.
Decentralized crypto exchanges are growing at an exponential rate today. One of the exchanges that gained much popularity both as an exchange and a token is Uniswap (UNI). It is an entirely decentralized crypto exchange for cryptocurrencies that runs on the Ethereum blockchain.
Uniswap has indeed gained a massive amount of popularity over the past few months. There are several reasons to back up the prediction that Uniswap is going to explode in 2021.
If you want to invest in Uniswap quickly and easily, with 0% commission, check out eToro Exchange!
Looking at 2021: Is Uniswap All Set For A Bullish Ride?
UNI has enjoyed massive success shortly after its release in 2018. Uniswap is a trading platform that allows users to swap a variety of ERC-20 tokens. Despite other DEX (Decentralized Exchanges), Uniswap is user-friendly, relatively cheap, and secured.
Considering UNI's rally in 2021 and Uniswap's new developments, let's see why Uniswap is all set to explode in 2021.
#1: Unstoppable Rally
The native governance token UNI was launched by Uniswap in September 2020, which caused a massive sensation in the market. UNI is ranked 9th among the largest cryptocurrencies in the CoinMarketCap ranking, by a market capitalization of $23,292,598,083 as of writing.
Though the token price quickly rose since its initiation, it could not surpass its initial all-time high. But 2021 was a spectacular year for UNI. It has shown a whopping surge of over 855% from January 2021 to the time of writing. UNI had a price of $4.7 in January. It further surged up, and hit a high of $44.97 on May 3rd, 2021.
With the new development in the protocol and UNI's high demand in the market, the price is expected to rise higher by the end of 2021.
#2: Significant Features Of Uniswap (UNI)
Some of the significant features of Uniswap compared to other exchanges is that it has user-friendly operations, provides users control over their private keys, lowers fees, and provides high liquidity. The implemented incentive system in the smart contract that maps the exchanges is another reason for its increasing popularity.
UNI is a pure governance token, facilitating users with voting rights. It also provides users an opportunity to participate in fundamental development decisions. The token holders can participate in Uniswap's governance by delegating their votes to a third party or voting on different proposals.
#3: Easy Swapping
Uniswap allows users to swap any token with the ERC-20 protocol employed by Ethereum. It makes the swapping process easy with just a few clicks by connecting MetaMask or any other compatible wallets to the exchange.
#4: Uniswap Liquidity Pool
Uniswap is a unique decentralized exchange that allows users to create liquidity pools through which they can earn. It uses a new type of paradigm known as automated liquidity protocol. Users can deposit tokens into a liquidity pool smart contract quickly. They will further receive pool tokens in return. These received tokens can be traded for ETH whenever the user wants.
Uniswap has also announced its four incentivized liquidity pools that reward liquidity providers with extra UNI tokens. The UNI token holders have an added privilege where they can vote to add more incentivized pools after an initial 30-day governance period.
UNI Token: The Growth Factor Of Uniswap Exchange
The UNI token celebrated its global launch in a unique manner which increased its popularity in the market. This decentralized exchange rewarded its existing users and liquidity providers with the new token UNI. Users who use the exchange within a certain date were rewarded with a specific amount of the UNI token. This boosted the value of UNI, and within a few days of its release, it surged to the top 40 most significant coins by market capitalization.
Moreover, UNI is one of the best utility tokens because it represents Uniswap as a publicly owned and self-sustainable financial infrastructure. At the same time, it continues to protect its indestructible and autonomous qualities.
The governance token also provides holders several special privileges along with governance rights. It facilitates users to approve or veto the proposed changes by granting them the right to vote on the changes made to the protocol.
One significant reason why Uniswap is going to explode in 2021 is eToro's latest announcement to add Uniswap to its crypto product offering. It is eToro's first token in the decentralized trading infrastructure, adding to its popularity.
Why Uniswap Is Going To Explode In 2021 to 2025? Experts Speak Up
Uniswap has been getting quite a lot of traction over the past few months. Here are some of the price predictions of UNI tokens by experts.
Uniswap UNI is a successful investment option according to the experts at Digitalcoinprice. They expect the price of Uniswap to triple in the long term and predict a high rise in its price soon in 2021. The price of the token will probably increase by 40% if it continues to keep its positions high. Digitalcoinprice further predicts a price of $52.47 in 2024.
The next prediction is by Walletinvestor, who says that the rapid increase during the bull market in 2021 is just a start for Uniswap UNI. They expect a price double, surging over $44 by the end of 2021. For the year 2023, Walletinvestor forecasts a relatively high rise in UNI’s price, soaring over $100.
Read More: Uniswap Price Predictions
With the decentralized exchange enjoying colossal success, Uniswap is going to be one of the popular projects in the coming decades. With the unique features of its governance token, crypto enthusiasts predict that the price of Uniswap UNI can triple in the long term.
Yet another factor that boosts UNI value is Uniswap's new development, its third iteration, the Uniswap V3. It will further feature high liquidity, flexible fees, and a license to use its open-source code for users.
Considering all these factors, the value of Uniswap UNI will exponentially increase in the market, and it will probably explode in 2021, positioning itself as a strong investment option for investors.
eToro – Top Exchange to Buy Uniswap
eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.