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Information about Uniswap (UNI)
Uniswap is a decentralized swap protocol built on the Ethereum blockchain. To be more precise, it’s an automated liquidity protocol, with no order book or any centralized party required to execute trades. Uniswap allows users to transact without intermediaries, with a high degree of decentralization and censorship resistance. Currently, Uniswap is the most widely used decentralized application (dApp) globally to date.
Uniswap works on the Automated Market Maker (AMM) model—a type of smart contract that holds a reserve of liquidity (liquidity pool) that traders can trade in. The liquidity provider funds these reserves. Anyone can be a liquidity provider (LP), depositing the equivalent value of two tokens into the pool. In return, traders pay a fee to the pool, which is then distributed to liquidity providers according to their market share in the pool.
Liquidity providers create markets by depositing the equivalent value of two tokens, be it ETH and an ERC-20 token or two ERC-20 tokens. These pools are usually made up of stablecoins like DAI, USDC, or USDT, but this is not required. In return, liquidity providers receive “liquidity tokens,” representing their market share of the entire liquidity pool. These liquidity tokens can be exchanged for the market share they represent in the pool.
Thus, it can be understood that Uniswap has two main functions:
UNI is an ERC-20 token born to initiate and encourage community ownership and governance participation. The Uniswap (UNI) token launch also became a catalyst for the increase in the price of ETH. A total of 1 billion UNI tokens have been minted; the initial supply will be fully diluted over the next four years, with 60% allocated to community members (600,000,000 UNI). Currently, UNI is present on many prestigious global exchanges such as Binance, Coinbase Pro, OKEx, etc.
News
Coinbase aims to restore staking rights across the US amid significant hurdles. Users in California, New Jersey, Maryland, and Wisconsin face losses totaling more than 90 million USD since June 2023, despite some states dismissing their lawsuits against Coinbase.
Oregon’s recent lawsuit accuses Coinbase of trading unregistered securities related to 31 crypto tokens, including XRP, UNI, and AAVE. The complaint highlights the need for clearer regulatory frameworks as many are calling for a consistent federal approach.
Crypto whales made notable purchases in the fourth week of April 2025, focusing on Uniswap (UNI), Mantra (OM), and Worldcoin (WLD). UNI’s netflow surged by 492%, while OM saw 26 million tokens bought after a price drop, and WLD’s 13 million tokens acquired indicated a bullish outlook on these altcoins.
In FY 2024, the Uniswap Foundation incurred expenses of 5.79 million USD against 1.11 million USD in revenue from various sources, emphasizing their strategic investments amid a thriving decentralized ecosystem.
The majority of the budget focused on payroll, totaling 3.13 million USD for a 16-member team, alongside 1.68 million USD for professional services, security, and marketing, ensuring effective operational support.
Maintaining nearly 30 million USD in reserves, the Uniswap Foundation is well-positioned for further innovation and growth in DeFi, particularly with strategic grants allocated across several key areas.
Uniswap price is currently at 5.92 USD after gaining 12.8% this week. A notable transfer of 9 million UNI, valued at 53.91 million USD, has been made to Coinbase Prime, indicating potential for market volatility. Traders are advised to stay cautious.
With resistance identified at the 50-day EMA around 6.28 USD, UNI may face challenges. The Relative Strength Index shows fading bullish momentum, suggesting a possible bearish shift if it falls below neutral levels. Close monitoring is essential for future price movements.
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