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Uniswap – the decentralized crypto exchange of choice amongst traders and investors – sent shockwaves throughout the market with the launch of their native governance token called UNI.
The launch of UNI was unlike any other seen before because everyone who had used the platform to trade – or contributed to its liquidity – prior to September first could receive a minimum of 400 UNI tokens.
Naturally, this excited platform users who received a free $400-$1,600 USD, with the token’s price fluctuating between $1 and $4 following its listing and distribution.
It is important to note that although some anticipated UNI to see a sharp selloff due to the widespread distribution of somewhat valuable tokens, it appears that the buy-side pressure has outweighed the inflows of 400 token sell orders from the platform’s users.
Analysts are now noting that they anticipate the Uniswap token to see further upside in the near-term.
One trader is specifically setting his sights on a move to $5.00, which would mark a significant surge of its current sub-$3.00 price.
Uniswap Protocol’s UNI Token Provides Platform Users with a Windfall
Uniswap has been leading the DeFi market’s adoption trend, being the platform of choice for both liquidity providers and token investors alike.
It is important to note that the launch of their governance token was unlike any other seen before, with users of the platform essentially being granted ownership of it via a 400 UNI token distribution.
Some users who traded on the platform while it was in its V1 stage even received far more than 400 tokens.
As for the cryptocurrency’s prospects, its upside may be somewhat limited due to it already have a diluted valuation of nearly $3 billion.
That being said, most of the total supply won’t be released for years, making its current market cap of $177 million quite low compared to the overall utilization rates of the protocol.
One analyst noted that its strength in the face of “insane sell pressure” seems to indicate that it is poised to see further upside.
“UNI insane sell pressure, biggest free monies drop in crypto, all other alts bleeding & still price holds, why? maybe it’s because it’s the most legit, respected and used thing in crypto right now. i don’t think uniswap price crashes badly…”
Trader: UNI Token Likely to Rally Towards $5.00 Next
At the time of writing, the Uniswap token (UNI) is trading just below $3.00, marking a notable rise from recent lows around $1.00.
One analyst believes that a rally towards fresh post-listing highs of $5.00 could be imminent in the near-term, offering the below chart showing this possibility:
Image Courtesy of Mac. Chart via TradingView.
So long as the DeFi trend remains hot, so too does the outlook of UNI.
Featured image from Unsplash. Charts from TradingView.
