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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.
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Uniswap is currently struggling against a resistance level at 5.5 USD. A breakout above this level is essential for a bullish outlook.
The overall sentiment among traders is bearish until Uniswap convincingly surpasses the 5.5 USD barrier.
Should UNI fail to break through this resistance, further declines down to 3.7 USD may occur, indicating ongoing downtrends.
KernelDAO has integrated more than 50 DeFi protocols, including Aave and Uniswap, while supporting over 30 Distributed Validator Networks. They have raised a total of 50 million USD to support their expansion across Ethereum, BNB Chain, and six Layer 2 networks.
KernelDAO’s recent initiatives include a 40 million USD ecosystem fund aimed at enhancing developer tools and promoting restaking adoption, backed by significant investors such as Binance Labs and Nomura.
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.
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