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Cryptocurrency News Articles

Uniswap (UNI) Price Prediction as the V4 Network Grows Ahead of the Unichain Launch

Feb 06, 2025 at 02:02 pm

The price of Uniswap has crashed in the past two months as the altcoin retreat continued. UNI dropped to $9.2450, down more than 52% from its highest

Uniswap (UNI) Price Prediction as the V4 Network Grows Ahead of the Unichain Launch

The price of Uniswap (UNI) has crashed in the past two months as the altcoin retreat continued. UNI dropped to $9.2450, down more than 52% from its highest level in November 2024.

So, is the Uniswap token a good buy, as the V4 network saw inflows ahead of the Unichain launch?

Uniswap V4 Is Growing

The primary catalyst for the Uniswap price was the recent V4 launch on networks like Ethereum, Polygon, Arbitrum, Base, BNB Chain, and Avalanche.

This version introduced hooks, or contracts, that let users customize how pools, swaps, fees, and LP positions interact. V4 also lowered trading fees further and introduced native ETH support.

Data from Uniswap Labs showed that the V4 network is growing, with the liquidity hitting almost $47 million. Most of these funds are in the Ethereum network, followed by Arbitrum, Base, BNB Chain, and Optimism. The most popular tokens traded in that version are Flinchy, Pepe, and Mog Coin.

Just crossed $47M in liquidity on Uniswap v4

Swapping through the Uniswap web app and wallet is 100% rolled out across Ethereum, Polygon, Arbitrum, OP Mainnet, Base, BNB Chain, Blast, World Chain, Avalanche, and Zora Network

The data also showed that Uniswap’s trading volume is rising. In the last 30 days, the network handled transactions worth over $107 billion, and in the last 7 days, it handled transactions worth over $26.6 billion.

These numbers make it one of the most successful players in the DEX industry, even as competition from Raydium, Meteora, and Orca rises.

The next important Uniswap catalyst is the upcoming Unichain mainnet launch. Unichain will be Uniswap’s dedicated layer-2 blockchain that will unite its platform across all chains.

It will introduce cross-chain liquidity, cheaper execution, and instant transactions. Its block times will start at 1 second and drop to 250 milliseconds over time.

Most notably, Unichain will be a decentralized chain where validators and stakers earn 65% of its revenue.

Unichain is growing DeFi ✨

The Unichain Validation Network (UVN) is designed to advance Unichain’s decentralization

Upon the UVN's launch, 65% of Unichain net chain revenue will be earned by validators & stakers for securing the networkhttps://t.co/QGeRcJfPYz

Meanwhile, CoinGlass data showed that exchange balances dropped from 68 million to 64.3 million earlier this month. It has moved to the lowest level since December 14 last year.

Uniswap Price Forecast

The weekly chart shows that the UNI price peaked at $19.33 in December and has retreated sharply to below $10. It moved below the important support level at $17, the upper side of the cup and handle pattern.

Uniswap has also moved slightly below the 50-week and 25-week moving averages. On the positive side, the coin forms a doji candlestick pattern, a popular bullish sign. Such a move will point to further gains to the next key resistance level at $17, about 87% above the current level.

READ MORE: Chainlink Price Prediction as LINK CEX Balances Plunge

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Other articles published on Feb 06, 2025