The Uniswap token (UNI) has remained relevant to the DeFi industry and strengthens its impact on it day by day. Trading at $5. 91 surplus, and on this basis the author states that ‘‘overall in 1995/96, UNI has posted a 2. In the past 24 hours, there have been an increase of 16% demonstrating that investors have started showing interest and confidence in the token again. This moderate but consistent increase reigns down the testament of UNI’s stability in the highly volatile nature of the crypto market as investors continue flocking to it to take advantage of the DeFi movement.
Established aside from market capitalization, UNI holds the 23rd position and by the time of making this list, they have a market cap of 3 543 969 962$. Uniswap, which is essentially a decentralized exchange (DEX) based on UNI, has been at the forefront in providing trustless token swaps whereby one can trade via his/her wallet without involving third parties. Such innovation has given Uniswap an anchor in DeFi that makes UNI tokens continually sought after.
Regarding the trading volume, UNI has grown by 19 percent in the same period mentioned above. Their trading volume has seen an increase of up to 98 percent in the 24-hour trading compared to that of Poloniex making it trade at $82,378,759. This book value, as well as its volume-to-market equity ratio stands at 2. Liquidity is not an issue as with 32% of trading volume, it is both tradable and dynamically available which makes UNI a very liquid token. The high trading volumes also indicate higher market involvement, a trend that is evident in rising acceptance of DeFi projects.
A major way of evaluating the performance of a DeFi platform is by measuring the Total Value Locked (TVL). In the case of Uniswap, the Total Value Locked as of now in the platform is $5,201,703,563. This figure expresses the sum of capital staked in smart contracts of the platform, and this metric is the most valuable measure in understanding the platform’s popularity and adoption by the DeFi community. The above analysis reinstates the fact that the market cap to TVL ratio of 0. 681; as long as, it reveals that the market prices the UNI tokens quite modestly in comparison to capital invested in the platform. This may eventually be good news for UNI as it develops and gains more mainstream adoption from users.
At the time of writing this paper, the circulating supply of UNI is 600,126,150 while the total supply is 1,000,000,000 UNI. This relatively high circulation rate indicates that a significant proportion of the UNI tokens is already among the investors and in active circulation or willingness to hodl. The lack of a max supply is a trend seen in many DeFi tokens, this enables more room for control of the tokens as well as tweaks to the tokenomics of the project as the project grows.
The platform of Uniswap has set itself apart from other decentralized exchanges not only by having chosen the AMM model but also by remaining very faithful to decentralisation and the principles of governance based on the community. UNI holders have decision-making powers regarding proposals that govern the Uniswap platform hence exercising control over the platform’s evolution. With this governance model in place, more activities have been created to build and sustain an active community, which by itself has helped cement Uniswap in the DeFi space.
The market capitalized based on UNI tokens is $5,905,375,000, this is the market capitalization based on the total amount of tokens of UNI if all tokens be in circulation. It is near to today’s market cap, which demonstrates that the distribution of tokens is fairly accurate and the market situation is quite stable.
Therefore, it is safe to say that a UNI token remains an indisputable staple of the DeFi ecosystem; moreover, the given information suggests that the token has been moving in the right direction lately. There is considerable support for this claim from factors such as a high market cap, increased trading volume, and significant TVL that testify to the platform’s stability and further growth. With DeFi’s growing popularity, UNI is well poised to take advantage of the growing adoption of decentralized financial solutions, and thus, whether you are inclined towards holding for the long-term or trading in the short term, UNI makes for a good addition to any portfolio.
+ There are no comments
Add yours