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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
On April 8, 2025, a whale moved 365,798 UNI tokens to Coinbase, marking it a $1.9 million transaction after an 8-month inactivity. This transfer incurred a loss of $1.25 million, highlighting crypto market volatility.
Despite this significant transfer, market reactions have remained subdued. Analysis shows Uniswap’s price has decreased by 60.96% in the last 90 days, indicating ongoing market corrections and the risks involved with large crypto transactions.
The SEC’s roundtable will feature notable executives from Uniswap, Coinbase, and Cumberland DRW, exploring how to establish clearer regulatory guidelines for crypto trading.
With the regulator’s scrutiny on these firms, the discussions signal a shift toward potentially easing the regulatory framework as part of a broader series aimed at advancing crypto industry clarity.
The value of DAO treasuries fell to 14.6 billion USD, down from 42.5 billion USD, largely due to a 3.5 billion USD drop in just one week. Mantle DAO, with the largest treasury at 2.3 billion USD, has seen an 11.4% decline.
The decrease in treasury values coincides with a sharp drop in user engagement, as reflected by the declining number of votes cast within DAOs, falling from 1,500 decisions in January to only 748 in March.
While most DAO tokens are losing value, Mantra (OM) stands out with strong gains, reflecting a unique trend amid the general downturn in DAO assets. Legacy DAOs are increasingly struggling due to market saturation.
Uniswap has surged beyond $6.90, marking a reversal from a multi-week downtrend. The relative strength index (RSI) at 56.03 indicates healthy bullish momentum, yet active user addresses fell to 296, which may impact price sustainability.
A sustained move above $8.00 is critical for further gains. If active user participation improves, it could confirm a rally toward higher targets like $10.25. However, continued decline in user engagement could test lower support levels.
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