Everyone is talking about this token: why is UniSwap (UNI) rising?

There are 3 main reasons behind the rise of UNI.

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One of the most notable projects in decentralized finance (deFi) since 2020 has been UniSwap, and the market is experiencing the advantages of early action.

UNI Token price

In late 2020, 400 UNI tokens were distributed to all wallet addresses that had previously provided liquidity on the platform at its peak, with the value of improvised airdrop at $ 3,500.

By the end of October 2020, there were sharp sales movements in the DeFi market, which led to the uni price being fixed below $ 4 for a long time. But since the beginning of 2021, the uni token has risen 335 percent, reaching an all-time high of $ 15.35 on January 27.

It is believed that three factors have caused the UNI price to increase so much: an increase in daily volume traded on the platform, an increase in the total value of the platform locked, and the introduction of governance features as the Uniswap v3 launch approaches.

Locked Total Value

Monitoring the locked total value (TVL) of a DeFi protocol is an important factor in determining the acceptance of the project and how much the community is involved in the project. A rising TVL means that platform users rely on the platform enough to invest their funds to win prizes, and typically their liquidity pools are more competitive than other exchanges in the industry.

The uniswap platform recently signed on January 24 for $ 3.16 billion, the highest TVL of all time. This, in turn, was supported by increases in the uni token.

UniSwap trading volume and V3

It is believed that one of the second factors of uni's recent rise is the sharp increase in the volume of trading on the stock market. Data from uniswap shows that the daily volume of Dex has consistently exceeded $ 400 million since the beginning of 2021, rising to $ 1.3 billion on January 11. This volume level, on the other hand, currently puts Uniswap in competition with the best central exchanges. Detailed information about UniSwap “what is Uniswap how to use it?"you can access our text.

In addition, the launch of Uniswap v3.0 and the inclusion of the community in decisions in this process are also factors in the rise of the UNI token.

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