Uniswap. Is there any chance of reaching $ 100? With DailyCoin

Uniswap. Is there any chance of reaching $ 100?

DeFi only promises unicorns and rainbows as it frees the financial market from centralization. With centralization comes exorbitant fees for each new listing. It hinders new projects to generate funding and mass exposure for the blockchain community. With the release of Uniswap v3 on May 5th and a sharp drop in fees, Uniswap surprises the blockchain space as it continues to be a reference DEX from the 2020 defi boom.

Uniswap data underscores its dominance of the market as it outperforms major centralized exchanges in terms of weekly and 24-hour trading volume. According to Hayden James, Uniswap had over 10 billion cumulative transactions in one week, which equates to half a trillion a year. With a 24-hour trading volume of around $ 2.3 billion, Uniswap is higher than Kraken, Bittrex, and is only outperformed by Binance or Coinbase, according to CoinMarketCap.

Is Uniswap a real technological unicorn?

Uniswap and DEX benefit from centralized exchanges for market growth. Cases where decentralization isn’t really the case have occurred in the past when Bancor Network, a decentralized liquidity protocol, was hacked by $ 23.5 million owners, freezing assets to prevent further financial damage. However, this calls into question the notion of decentralization.

Uniswap faced high transaction fees as Ethereum gained traction. Fees on the network would exceed $ 100, creating opportunities for additional exchanges to gain market share. As such, PancakeSwap and most recently QuickSwap position themselves as credible competitors on the market, as they are based on the Binance Smart Chance (BSC) and Polygon (MATIC) blockchain.

Ethereum was subjected to a network update in which the block size was increased from 12.5 million to 15 million. Network activity increased as Uniswap users were encouraged to increase the transaction load. Despite previous concerns about high fees, Uniswap has the first mover advantage. Investing and providing liquidity in Uniswap required higher transaction fees, so only higher quality projects could be successful.

Uniswap and other decentralized exchanges have more than one means of doing crypto with no middlemen. Your expansion into a market for blockchain enthusiasts creates a new path of discovery. To this end, DEXs are of paramount importance to cryptocurrency investors as they provide a level of transparency and accountability among investors.

Uniswap is the DeFi norm in 2021. After entering the top 10 coins by market capitalization, Uniswap entered an appreciation phase as it became better known to higher capital investors. Given the high fees, Starkware wants to build a bridge between the DeFi platforms and the Tier 1 of Ethereum so that users can trade gas-free, thereby increasing transaction performance on the exchange.

Still, DeFi is a compelling aspect of blockchain technology. Uniswap has been added to Bitwise Investments, a mutual fund that gives institutional investors more opportunities to get used to the DeFi space. As Bank of America (NYSE 🙂 pointed out, “DeFi is more disruptive than”. This makes Uniswap the main competitor taking over most of the DeFi market. UniSwap’s price movement reflects its intrinsic value. As more and more investors use the platform and transaction fees decrease, UniSwap can generate a return on investment.

On the downside

  • The ease of using Uniswap opened up new opportunities for fraud in the blockchain space
  • An overhype of DeFi tokens could lead to a crash in 2017 and burn similarly to ICOs
  • Uniswap’s success depends on Ethereum’s ability to accommodate growing network demand.
  • PancakeSwap and QuickSwap offer lower transaction fees and could dethrone UniSwap if investors find projects less risky.

DeFi after the 2020 boom

DeFi and DEX have been a talking point in the blockchain space for over half a decade after Ethereum popularized smart contracts. The expansion of Chainlink Oracle as the standard broker for blockchains brought DeFi closer to reality. According to a Forbes article, DeFi’s utility and accessibility to a larger market saved the price of Bitcoin in late 2020 and early 2021.

The DeFi concept did not exist 3 years ago. Now DeFi, farm yielding and decentralized exchange are synonymous with blockchain technology. Data from DeFiPulse shows that the total tied to exchanges exceeded 1 billion on July 26, while it was just 1.33 million on September 28, 2017. TVL is now over $ 21 billion on DEX with Uniswap dominating 27.58% of the market.

The current financial model is outdated, broken and does not take into account the evolution of digital technologies. Thus, the financial needs of many are not fully met. The DeFi summer created a new asset class where income and agriculture became a source of income. It offered the ability to convert USD to any coin, generate higher interest rates than a central bank and convert the asset back into USD.

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