Uniswap Research Hub | UNI information, history and analysis
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:
- Swap: Allows users to swap Ethereum and various ERC-20 tokens.
- Pool: Helps users earn money by becoming a liquidity provider (LP), done by depositing tokens into a smart contract, and in return, you will receive tokens in that pool.
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.
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.
In the latest metrics, Pancakeswap recorded 1.41 billion USD in transaction volume within 24 hours, significantly exceeding Uniswap’s 674.38 million USD. The continuous growth reflects Pancakeswap’s strength in the decentralized exchange landscape.
Throughout February and March 2025, trading volumes have shifted; Pancakeswap led in February, but Uniswap showed resilience in March. This fluctuation illustrates the ever-changing dynamics of decentralized finance and market conditions.
The competition between Pancakeswap and Uniswap as DEX platforms emphasizes the evolving nature of the crypto market. Bitcoin’s price remains crucial, currently at 84,160 USD, adding to the discussions within the decentralized finance sphere.
ChainAware.ai has introduced a revolutionary Web3 User Analytics Dashboard. This platform aggregates critical data from popular decentralized finance protocols, including Aave and Compound, empowering users with real-time analytics and improved engagement strategies.
The dashboard also incorporates fraud risk assessment capabilities, enabling users to identify potential security threats. This ensures effective risk mitigation while preserving a seamless user experience, vital for maintaining trust in a dynamic market.
The Uniswap community has greenlit an investment of 165.5 million USD to facilitate ecosystem growth and innovation. This includes activating the ‘fee switch’ and a budget allocation for liquidity incentives, thereby benefiting UNI holders.
As part of the initiative to strengthen the platform, a portion of the funds is set aside to attract liquidity providers, which has resulted in a notable 7.5% surge in UNI’s price following the announcement.
Uniswap is nearing a key support level at 3 USD, which has historically provided bullish reversals. The MACD indicates a bearish trend, but accumulation by Smart Dex traders, with a buy volume of 64,900 USD and no selling activity, signals potential bullish sentiment.
Recent whale activity shows a 2.15% increase in ownership of UNI over 30 days, adding bullish pressure. If UNI sustains above the 3 USD support, a bullish reversal may occur, similar to notable rebounds in mid-2022 and late 2024.
Galaxy Digital’s recent deposit of 600,000 UNI tokens indicates significant market movement. This contributes to a total of 5.26 million UNI tokens worth 40.6 million USD deposited in the past week, potentially signaling upcoming price changes.
Currently, 74.35% of Uniswap holders are facing losses, presenting selling risks if prices rise. UNI’s price is at 7.52 USD, testing a critical demand zone, and increased short liquidations may indicate a short squeeze.
Uniswap’s Unichain Layer-2 launch has generated backlash due to limited consultation with the Uniswap DAO, raising claims of transparency and governance issues. Critics argue that the 165.5 million USD funding proposal disproportionately benefits Uniswap Labs, sidelining UNI holders.
Concerns about liquidity fragmentation are prevalent, with efforts to incentivize migration to Unichain potentially weakening Uniswap’s position on Ethereum. Despite these challenges, the Uniswap Foundation is focused on the growth of both Uniswap v4 and Unichain.
Uniswap struggles to breach the 10.00 USD mark, compounded by low V4 adoption at 0.01%. The Relative Strength Index indicates weak bullish momentum, potentially leading UNI to further losses if it cannot surpass resistance at 10.06 USD.
Should V4 adoption increase, UNI may break above 10.06 USD and target 11.96 USD; however, without this momentum, it is likely to remain within the range of 10.06 USD and 8.76 USD.
Uniswap’s price stands at 9.60 USD, and it needs to maintain support above 9.55 USD to potentially rise by 30% to 12.60 USD. A drop below 9.45 USD could result in a decline of 15% to 8.15 USD.
Traders appear over-leveraged, with long positions around the 9.57 USD mark and shorts at 9.73 USD. Despite a price drop of 2.25%, trading volume surged by 70%, indicating strong participation.
Technical analysis shows an ascending triangle pattern for UNI, which could lead to bullish outcomes if the price holds above 9.55 USD. However, failure to do so may trigger a significant decline.
UNI is showing signs of a potential 30% price increase after breaking out from an Adam & Eve pattern, which marks a shift from a downtrend to an uptrend.
Current indicators, including a neutral RSI of 50.16 and a bullish MACD, point towards increasing buying momentum, suggesting a more favorable environment for a price rise.
With significant profits among UNI holders, this could encourage further buying, reinforcing upward pressure on the price as it approaches the $13 target.