- $UNI is bouncing back after hitting lows near $5.4, now trading around $6.8 and showing signs of a trend reversal—analysts eye $8.9 if momentum holds.
- Positive sentiment is building, thanks to two major governance wins: Unichain L2 and Uniswap v4, plus the long-awaited “fee switch” activation.
- With new revenue mechanisms and fresh upgrades, Uniswap looks ready to reestablish itself as a leading DeFi player in the coming months.
Uniswap
Uniswap ($UNI) is a decentralized exchange (DEX) on the Ethereum blockchain that facilitates peer-to-peer trading of cryptocurrencies using automated market makers (AMM), with $UNI being its governance token.
Price Movements
Currently, $UNI is trading at $6.8 with a market cap of $4.27 billion. Over the past year, the token has shown significant volatility, hitting a low of $5.4 in August before surging to $18.7 in December. Since then, the price has been on a decline, consistently establishing lower lows.
Credit: CoinGecko
Price Predictions
After hitting bear market lows between $5.4 and $5.5, $UNI is beginning to show signs of recovery, although it faces resistance at the $7 level. Looking ahead, analysts suggest that the token has broken above a falling wedge pattern on the daily chart, and if the upward momentum holds, the short-term target could reach $8.9.
Market Sentiment and Developments
Market sentiment around Uniswap is turning positive following the approval of two key governance proposals, focusing on the Unichain L2 network and Uniswap v4 protocol. These initiatives introduce new funding mechanisms, liquidity incentives, and pave the way for the activation of the “fee switch,” a feature that allows the protocol to capture a portion of trading fees, redirecting them from liquidity providers to Uniswap’s treasury, thereby creating a new revenue stream.
Future Outlook
Looking ahead, Uniswap’s potential turnaround, driven by the adoption of its L2 solution and successful governance changes, could restore investor confidence and drive renewed growth, positioning it for stronger market performance despite recent challenges.
