Uniswap is a decentralized exchange (DEX) built on the Ethereum blockchain that has quickly gained popularity in the crypto space. In this article, we’ll explore the origins of Uniswap, its price analysis, its profitability, and its future prospects.
Origins
Uniswap was launched in November 2018 by Hayden Adams, who developed the platform as an alternative to centralized exchanges. Uniswap utilizes an automated market maker (AMM) system that enables users to trade tokens without the need for an order book or centralized exchange. This approach makes Uniswap a decentralized and thrustless exchange, where users have complete control over their assets.
Price Journey
Uniswap’s price journey has been quite volatile, experiencing significant fluctuations since its launch. In September 2020, the price of UNI, Uniswap’s native token, was approximately $1. However, the DeFi boom later that year caused UNI’s value to skyrocket, reaching an alltime high of $44.92 by May 2021. This was an astonishing increase of over 4,000% from its initial price.
Uniswap has been one of the most profitable investments in the crypto space, providing early investors with substantial returns. Its popularity is also reflected in its trading volume, which has consistently been among the highest in the DEX space.
However, now it is trading 85% below all-time high at $6.37, with the current market cap standing at $ 4.9 billion with a circulating supply of 762.2 million uni.
Current Price Analysis
$UNI
On H1 timeframe level the price action forming out Bullish Harmonic Shark pattern level where the price action is yet to complete out the D leg of the pattern level.
Currently respecting out H1 S/R level, we can expect out some downwards movement after the proper breakdown along with the retest
What is bullish harmonic pattern?
The bullish harmonic shark pattern is a 5-point reversal pattern that is used to find a reversal level for the currency pair price where you can have tight stop loss just below the C point. The pattern has the shape of an M, with the second swing high being higher than the first one. The Shark pattern can be either bullish or bearish. It is as effective as other harmonic patterns and a common variation on trading this pattern is to trade the last leg to completion.
Uniswap Future and Conclusion
The future looks promising for Uniswap, with the project continuously innovating and expanding its offerings. Uniswap V3 was launched in May 2021, introducing several new features, including concentrated liquidity and multiple fee tiers. These features aim to improve liquidity provision and reduce impermanent loss for liquidity providers.
Additionally, Uniswap is planning to launch a Layer 2 scaling solution to enhance its speed and decrease transaction fees.
In conclusion, Uniswap has disrupted the traditional centralized exchange model and established itself as a prominent decentralized exchange. Its unique features and growing popularity make it a lucrative investment opportunity. If you’re looking for a decentralized exchange that provides complete control over your assets, Uniswap is the way to go.
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