Uniswap (UNI) Price Skyrockets as Uniswap Labs Announces the Release of Uniswap v4 and Unichain Pivot

Uniswap Labs, a leader in the DeFi space, has announced the release of Uniswap v4, a new protocol version. Uniswap v4 aims to revolutionize the Decentralized Finance (DeFi) sector by introducing new and improved features on the protocol. This also reduces gas costs and makes liquidity pools more customizable.

Uniswap Labs, a pioneer in the Decentralized Finance (DeFi) realm, has unveiled Uniswap v4, a new iteration of its decentralized exchange (DEX) protocol. This upgrade introduces a plethora of enhancements, including reduced gas costs, customizable liquidity pools, and support for native Ethereum (ETH) in trading pairs.

Uniswap v4, developed by the broader Uniswap community, boasts several key features:

Hooks: These are customizable smart contracts that enable users to tailor how pools, swaps, fees, and LP positions interact, opening up new possibilities for startups and institutions to drive DeFi innovation.

Singleton Contract: This consolidates all token pairs into a single smart contract, drastically reducing gas fees by eliminating the overhead costs associated with traditional pool construction.

Uniswap Labs claims that v4 is the most cost-effective version of the protocol to date. Creating new pools on v4 is reportedly 99.99% cheaper than in previous versions, and swappers can anticipate significant savings on multi-hop swaps.

Moreover, Uniswap v4 reintroduces native ETH in trading pairs, which were temporarily removed in v2 due to implementation challenges and concerns over liquidity fragmentation. However, the native ETH support adds substantial savings for ETH pairs.

Uniswap Unichain Pivot

The launch of Uniswap v4 coincides with the announcement of Unichain, a DeFi-based Layer-2 solution for Ethereum. Built on the Superchain, Unichain aims to alleviate the high transaction costs on Ethereum.

Uniswap plans to reduce transaction costs by up to 95% and enhance speed through one-second block times, boosting market efficiency. The Unichain Sepolia testnet received a massive response after launching in October 2024.

The testnet reportedly handled 50 million test transactions and over 4 million test contracts, prompting the platform's team to prepare for Unichain's public mainnet.

Uniswap (UNI) Price, Current Outlook, and Future Forecast

The UNI token has been reacting positively to the Uniswap v4 upgrade announcement and the Unichain pivot. At the time of writing, UNI was trading at $12.38, showing a 2.25% gain in the last 24 hours. UNI encountered resistance at $12.8 on the daily chart before slipping to current levels.

The ongoing momentum in the ecosystem pushed the market cap to $7.43 billion. As for technical indicators, the current sentiment is Neutral, and the Fear & Greed Index shows Extreme Greed at 76.

The market prediction for UNI in February suggests the token will increase by about 5.36%. This forecast establishes an average price of $ 12.98 for the month.

The projected price fluctuation ranges from $11.71 to $16.15, indicating a possible 31.06% return from the current price.