The crypto industry has changed dramatically over time. There have been several significant additions to the industry; the most notable is the introduction of Defi or decentralized finance. Defi is a type of finance that does not rely on any central intermediaries such as banks or exchanges to approve the transactions, unlike all other forms of finance.
After Bitcoin, Defi, or decentralized finance, is the second most crucial component of the crypto ecosystem, with Uniswap accounting for roughly half of the Defi sector. Uniswap (UNI) is one of the most decentralized cryptocurrency exchanges (DEX) that operate on the Ethereum Blockchain.
Uniswap protocol allows users to automatically swap ERC-20 tokens, enabling users to trade anonymously. Tokens are combined into smart contracts by UNI. It has a total valuation of more than $4.4 billion (i.e., Total Value Locked).
Worried about the Uniswap price prediction and valuation of your Uniswap investment and wondering how far it will go?
You do not need to worry; this article is intended to give you a quick overview of the Uniswap price prediction 2021 and beyond (up to Uniswap price prediction 2025). The purpose is to guide you if it is worthwhile to invest in Uniswap.
What Is Uniswap?
It is time to stop wondering what is UNI? Let us dive you into the world of Uniswap.
Hayden Adams created Uniswap, a decentralized exchange, in November 2018. Uniswap uses an automated liquidity protocol, allowing users to retain control of their funds at all times. This protocol works by incentivizing traders to become liquidity providers (LPs) on the exchange: Users of the Uniswap platform pool their funds to form a fund that is used to conduct all trades on the platform.
UniSwap is a non-mineable token with a current price of $31.02 and a market capitalization of $16,193,172,478, putting it in the eighth position in the global cryptocurrency ranking.
Following its initial launch in 2018, Uniswap released V2 in May 2020, which was clearly an evolution of its on-chain Blockchain V1, and the anticipation for V3, which was already announced, is growing. Now, Version 3 (V3) is expected to release on 5th May 2021. Uniswap V3 would reduce the process’s cost while also improving its reliability and speed.
How UNI Works?
Two smart contracts called ‘Factory contract’ and ‘Exchange contract’ are hosted on the Ethereum Blockchain, and a public, open-source front-end client is also available for this protocol. It is a 100 percent on-chain market maker that is compatible with all ERC-20 tokens. The factory smart contract connects new tokens to the network, while the exchange smart contract handles all trades or token swaps.
UniSwap allows users to trade any ERC20 token, including the native ETH token, without a middleman’s involvement. Anyone with an Ethereum address may contribute to the exchange’s liquidity, thereby reap profit from it. For instance, Arbitrage traders can detect price differences through various exchanges and profiting from them by buying tokens from one exchange (say Binance) and selling on the other (say Kraken).
What Is Uniswap (UNI) Token?
UNI (Uniswaps’ native token) is a governance token. This grants holders the ability to vote on new platform improvements and updates, such as how newly minted tokens should be allocated to the developers and community, as well as any fee structure changes.
Uniswap replied by issuing 1 billion UNI tokens, of which 150 million were distributed to everyone who had ever used the platform. Each individual earned 400 UNI tokens worth more than $1,000 at the time.
Technical Analysis of UNI
Flashback: Price of UNI in 2020
As per Coinmarketcap, Uniswap entered the crypto market on September 17th with a trading price of $2.94. After being listed on many exchanges worldwide, the price skyrocketed to $6.96 only two days after the launch. Surprisingly, UNI fell to $3.98 by mid-September before rebounding to $5.02 by the end of the month.
Bears dragged the market down, and the price fell to $2.57 in early October 2020. However, until the end of October, UNI traded between $2 and $3 with some variations. Due to colossal selling pressure, UNI fell to $1.80 by early November 2020. By mid-November, the price had hit its resistance level and had stayed at $3 with minor fluctuations until December 2020.
Uniswap Price Prediction Factors
The general business environment and the introduction of Uniswap V3 will play a crucial role in deciding the UNI coin price. Even though Bitcoin is having a difficult time after reaching the $40,000 price level, the business climate is still not pessimistic; in fact, it appears to be optimistic in the near future.
As V2 had previously skyrocketed the market, there’s a good chance that the release of Uniswap V3 will be highly beneficial to UNI’s future.
Uniswap Price Prediction 2021
The start of the year 2021 was a massive success for UNI. The bulls were able to break the price corridor where the price of UNI had been trapped for months. The trading price of Uniswap in 2021 was $4.97. As the trend began to improve, UNI began to recover. In February, the 20-dollar resistance was eventually broken, and UNI reached a new all-time high.
For the first time in January 2021, the price managed to exceed the price high from September 2020. The price increased by over 350% between January-February 2021. On March 7, UNI effectively reached a new all-time high of $34.77. It could also go higher if changes to its protocol are made, and the price could increase month after month. Uniswap could be worth $75 by the end of 2021.
Uniswap Price Prediction 2022
UNI is considered a promising investment by long-term investors. They believe the price will triple in the long run. As a result, Uniswap will launch in the year 2022 at the cost of $78. If the market turns bullish, the price could rise dramatically. Marketers may be interested in Uniswap because it makes it simple to exchange coins. Uniswap could be worth about $180 by the end of 2022.
Uniswap Price Prediction for the Next Five Years
Based on the performance of the coin, it is evident that this trend will continue, and the token’s value is expected to rise by 40 percent.
Uniswap’s user base will expand in the next five years. It might focus on newer projects to improve its protocol and make it more user-friendly. If the bulls gain leverage over the bears, the price could rise to new heights. As it generates liquidity, it can attract more investors. At the end of five years, Uniswap might be worth $300.
Uniswap Price Prediction by the Market
Uniswap is one of the successful decentralized finance protocols of 2020, with the decentralized platform outperforming its centralized equivalents in terms of daily trading volume at peak times. The trading platform’s governance token, UNI, was published in September and distributed to platform users. The token price rapidly increased, but it stayed stuck near its all-time high for a long time. This changed in 2021 when the token’s value increased due to the optimistic view of the bull market.
As a result, Different markets have different viewpoints, as discussed in the sections below:
UNI is considered a promising investment by the experts at Digitalcoinprice. They believe the price will triple in the long run. They predicted that by the end of 2021, the price will rise to about $30 US dollars. This upward trend will continue in the next two years, with the token’s value increasing by 40%.
In 2024, Uniswap price prediction equals $52.47, according to Digitalcoinprice. Finally, in the last year of the forecast, UNI has more than tripled in value with a price of $62 US dollars.
CoinPedia combines the predictions of other experts with its own research to arrive at a price estimate. Experts predict that the value of the UNI token would skyrocket. CoinPedia’s Uniswap price prediction indicates a price of about $35 in 2021, which is close to the forecasts of the previously mentioned analysts.
A steady price rise is expected in the coming years, but not as high as projected by Walletinvestor. For instance, CoinPedia expects a price of $75 at some point in the future. For long-term investors, this will make UNI a successful investment.
According to CoinArbitrage, Uniswap could hit a high of $67.5222 and a low of $5.83102 in the next three years.
According to TradingBeasts, UNI could hit $19.7188 by the end of 2021, with an average price of $15.7695.
According to Walletinvestor, the price increase during the bull market in the spring of 2021 was a drop in the bucket. For the year 2021, Walletinvestor foresees a price rise of more than 40 percent. The token’s value could double again in the following year, based on the previous year’s pattern.
Walletinvestor expects a relatively slow increase to just over 100 US dollars in 2023. After a year, the price may rise by 28.5 percent, resulting in a price of about 135 US dollars. The experts expect a price of 166.04 US dollars in 2025.
Our Uniswap Price Prediction
After taking into consideration all of the variables that might impact UNI’s value in the long run, we expect that the coin will trade between $30.762 and $50.238, with an average price of $40.864 for the entire year of 2021. UNI is expected to fluctuate between a low of $60.892 and a high of $70.978 in 2022, with an average price of $65.743.
Uniswap is expected to fluctuate between $80.463 and $100.970 in the year 2023, with an estimate of average price equal to $85.897. The coin will experience a bull run around 2024, when its price may soar to $150.88. In 2025, the price is expected to rise to $190, given the coin’s highly bullish nature.
Instead of using traditional cryptocurrencies, Uniswap uses a decentralized P2P exchange with an automated market creator (AMM). Uniswap has a unique feature of supplying liquidity directly from liquidity providers since it is connected to Ethereum as two smart contracts (LPs). This unique function of Uniswap serves as a significant catalyst in eliminating the token mining barrier.
In specific ways, it encourages accountability by obviating the need for intermediaries or permission. As a result, the digital assets are connected as pairs rather than as individual cryptocurrencies. The crypto community has high expectations for UNI, and it is undoubtedly a perfect platform for developers and engineers creating more decentralized applications.
The Uniswap price prediction between 2021 and 2025 shows a positive outlook for the coin, making it a profitable investment in the long run. In any case, the token’s performance is inextricably linked to the decentralized platform’s future growth. If the current upward trend persists, UNI can prove to be a sound investment.