Will Uniswap (UNI) Make Me Rich?
Seven months into its launch, Uniswap has already joined the club of most successful altcoins in 2021 and in the crypto industry. In October 2020 and as late as Jan 2021, no one really expected UNI token prices to blow up and turn out to be a millionaire maker.
Seeing that you are here, you too must be asking what’s on everyone’s mind - will Uniswap make me rich? And if yes, when?
We will be going deep into this and telling you whether Uniswap UNI has the potential to muster enough attention to its brand in the future as it has in the last seven months. Because that’s the only way, the altcoin can help turn you and anyone else who didn’t buy into the coin early into millionaires.
But first, we gloss over its stats.
Starting with a listing price of $0.48, UNI prices grew by an incredible 7300% to the current $35 (which is still $10 less than the altcoin’s all-time high of $44.97). Its market cap has also shot to an unimaginable range of between $18 and $23 Billion - making UNI the 12th most valuable cryptocurrency today.
But how can a change in these altcoin dynamics help make you a millionaire? For instance, is it possible for Uniswap UNI prices to reach $1,000? What about its price projections for the next five or ten years?
Let us answer all these questions by examining Uniswap’s potential growth below.
Will Uniswap Eventually Reach $1000?
Uniswap’s surprise entry into the market has had many crypto analysts, and UNI investors convinced the token is well on course towards $100. These experts and investors are, however, sharply divided on the $1,000 projection, and the majority consider it a bit of a stretch, especially in the short term.
To reach $100, Uniswap UNI only needs to triple the love and interest it currently commands to push its market cap to $100 Billion. In a $2 Trillion dollar industry, and with the explosively growing DeFi ecosystem, this is considered possible. But do you know that getting to $1,000 requires a 2,900% price jump and a $1 Trillion market cap? Making it at par with the current BTC valuation.
The unpredictability of the crypto industry ensures that you do not write off the ambitious prediction of $1,000 as impossible. But it doesn’t stop analysts from calling outs its impracticability.
You, too, have to look at the key factors influencing UNI prices and see if they are strong enough to thrust it above the $1,000 mark.
From the peripherals, we have seen these three factors consistently influence the price of UNI tokens; upgrades to the Uniswap network, crypto market direction, and the DeFi ecosystem.
Here is an example, Uniswap UNI tokens fell off track in mid-April and dropped below $30. They, however, rose sharply in the first two days of May in anticipation of the Uniswap V3 launch, setting the current all-time high and helping Uniswap become the largest decentralised exchange - albeit temporarily.
As Elon Musk continues to slam Bitcoin, effectively sending the markets into a bear run, UNI tokens have also been adversely affected - proving UNI token price’s correlation with BTC prices and crypto market direction.
And DeFi? It's true that it too feeds off a flourishing crypto market - seeing that it has shed off more than $10 billion since Elon Musk’s attacks on the legacy crypto started.
Are either of these (or all) able to push UNI token prices towards $1,000? Only time will tell.
Moving on, we look at UNI token price projections for more defined timelines.
What Will Uniswap Be Worth in 5 Years?
Since its launch, the Uniswap UNI token has had its stars aligned. For starters, its launch not only coincided with a crypto rally but also came at a time when the DeFi ecosystem was exploding. Should this continue, we should expect to see UNI post a massive breakout within the next five years.
Tabassum Naiz of RippleCoinNews, a crypto-price-prediction website, refers to the hope of Uniswap token reaching $1,000 in five years as a “slightly optimistic aspiration.” She is, nevertheless, confident that the altcoin will have reached $100 during this time - or even as early as December 2023.
Technical analysis by Wallet Investor points to a more bullish Uniswap token future. It places UNI token prices at $111 by this time next year and at an impressive $418 by May 2026.
Where Will Uniswap Be in 10 Years?
The trickiest part about forecasting Uniswap future prices is that it is still new - both the token and its decentralised exchange. There isn’t much fundamental data to use in its price analysis. Plus, unlike established cryptos such as Bitcoin and Ethereum that have pretty much exhausted their avenues for expansion and re-invention, Uniswap hasn’t implemented half its plans. This then makes it incredibly hard to correctly predict its price 10 years down the line.
Granted, Uniswap is still trying out stuff and looking to increase the value of its token while making its DEX as unique and popular as possible.
There is no telling how long this road to self-discovery will be or the number of upgrades that the DEX intends to carry out in future. Neither can we accurately state that they all will push UNI token prices up.
This lacklustre feel about Uniswap’s future is shared by the Coin Price Forecast website, whose analysis suggests that UNI token prices will rise gradually and only reach $142.13 in 10 years. This analysis borders a bearish prediction when it expects the altcoin to reach $69 before the end of the year but only add less than $80 in the next 10 years to make it to $142.
Read Also: Uniswap Price Prediction for 2025 and 2030
Is Uniswap a Good Long-term Investment?
Uniswap is a future-focused cryptocurrency. It has a solid whitepaper and a definitive roadmap detailing where the token and decentralised exchange hopes to get and what they hope to achieve in the longer term. And that would be opening up the financial marketplace and making it accessible to all while empowering developers and liquidity providers.
And you don’t even have to search far to confirm it is a good long term investment. You only have to look at the factors driving its prices and its backers. The project is currently headed by a renowned Ethereum developer - and it also has the backing of Vitalik Buterin.
Plus, unlike visionless digital currencies like Doge that are driven by celebrity endorsements and zero content, Uniswap’s prices are driven by practical factors like potential for mass adoption for the token and decentralised exchange, revolutionary upgrades and its role in the DeFi ecosystem.
These are the factors that Uniswap UNI investors and crypto analysts are banking on to help push the token prices above $100 in the short run and probably $1,000 over the longer term.
The answer to this is a definite YES if its past price performance - of 8200%+ overall ROI - is anything to go by.
You might also be convinced of its viability as a long-term investment when you look at the rate at which both the DEX and the DeFi environment are growing, its revolutionary ideas - especially the AMM liquidity protocol, and investor confidence - which is a strong buy.
But is it all rosy for Uniswap? No. The fact it is housed within the ETH blockchain is not only its biggest blessing but also its biggest threat. With the unprecedented growth of the DeFi came the unprecedented demand for ETH tokens.
You are aware that the ETH blockchain has always had scalability issues, which have currently pushed transaction prices above $50.
And no one wants to pay $50 in transaction fees.
So, the last few months have seen current and would be UNI investors turn to alternative platforms like the Binance Smart chain and its Uniswap equivalent, Pancake swap.
All is not lost, though, since ETH - unlike Bitcoin - has never had a problem adapting. The Vitalik-led team may be slow, yes, but hopefully, ETH 3.0 will come in sooner than later and save the situation.
Conclusion: Should I Buy UNI?
The decision to invest in UNI tokens should be informed by your investment goals and risk tolerance. We must, however, observe that virtually all well thought out coins that seek to address a societal problem - like Bitcoin, ETH, Ripple, or Cardano - have all had a net-positive long-term ROI. It, therefore, makes sense to dedicate a portion of your investment portfolio to cryptos like UNIswap.
But before you buy your first Uniswap token, do your own research. Secondly, start small. Lastly, don’t be greedy with crypto investments, rather, only invest what you can afford to lose.
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