DeFi has advanced from what it used to be a few years back, all thanks to several crypto startups and platforms designed to eliminate the ambiguous nature of decentralized finance and increase Its functionalities.
One such platform is Uniswap, a decentralized platform built on the Ethereum network designed to replace centralized third parties with smart contract functionalities when performing all sorts of transactions on the platform.
It also enhances DeFi functionalities to assist individuals in making passive income through staking, liquidity pools, creating and listing tokens, and peer-to-peer trading.
Uni, the native token of the Uniswap platform, functions as a standard ERC-20 token of the Ethereum network and has recently attracted the attention of several crypto enthusiasts and analysts due to its numerous use cases and growth potential.
Many of these analysts have, after careful analysis, predicted what the price of Uni would be in the coming years and months. In this article, we will briefly discuss Uniswap before focusing on the long-term price prediction of UNI by price experts.
What Is Uniswap (UNI)
Uniswap is an open-sourced decentralized crypto exchange built on the Ethereum network; it employs smart contract functionalities to enhance speed and scalability and to facilitate automated transactions between crypto tokens on the ETH blockchain.
Uniswap functions as an Automated liquidity protocol, eliminating the need for Order Books compared to traditional DEXes. But instead relies on liquidity providers to create liquidity pools, which the platform taps into to circulate liquidity and enable other users to swap ERC-20 tokens seamlessly.
Further, unlike centralized exchanges, Uniswap has no list of tokens available on the platform but is compatible with all ERC-20 tokens; even if they were just created and launched, they could be traded on the platform as long as there is a liquidity pool to power it.
Therefore the platform does not charge listing fees, making it easy for smaller ERC-20 tokens to market their assets. The platform is currently the largest Decentralized exchange and the fourth-largest exchange in the crypto industry by trading volume.
Uni, the platform native token, functions as a standard ERC-20 token of the Ethereum network and is currently worth $5.59, ranking 18th in the crypto market with a market capitalization of over $4 billion, according to Coin Market Cap.
Brief History Of Uniswap
The platform was founded in 2018 by Hayden Adams, a former mechanical engineer based in siemens. Uniswap was founded to introduce Automated Market Makers to a wider audience on the Ethereum network. Even though Adam founded this platform, the idea originally came from Vitalik Buterin, one of the co-founders of the Ethereum network, in one of his blog posts.
Adam began to focus on the Ethereum network in 2017 after being convinced by one of his friends, leading him to conduct research that will enable him to understand how the network works.
Before launching the Uniswap protocol, Hayden participated in various projects. His work was directly connected to Buterin, who ended up naming the project Uniswap instead of the proposed name Unipeg. Several platforms invested in the platform after launch; among them are Paradigm Venture capital, Square Venture LLC, ParaFi, and Andressen Horowitz.
Two years after its launch, in 2020, the platform launched Uniswap V2, this version allowed individuals to swap ERC-20 tokens on the Ethereum network directly.
That same year in September, they released the UNI token, which serves the purpose of Utility and governance on the platform. Using that token, they rewarded all ETH wallets that had performed transactions on their network before the first of that month, 400 UNI. In addition, some users who had provided more liquidity to the platforms were given more tokens.
A year later, in May 2021, they launched Uniswap V3, an upgrade focused on liquidity providers and pools. For example, it extended the capital efficiency of a liquidity provider by up to 4000×, increasing their rewards simultaneously. In addition, Lps can reduce downside risk by increasing exposure to specific assets of their choice.
The Protocol Uniswap Uses
Uniswap operates on a constant Product Market Maker, a variant of Automated Market Maker, but is more decentralized, enabling it to ditch Orderbook, the architecture of centralized exchanges, facilitating trustless transactions through smart contracts.
Automated Market Makers, or AMM, were efficient before the emergence of Constant Product Market Makers because they employ smart contracts to hold and distribute liquidity which traders can leverage to trade.
The liquidity pools were funded by liquidity providers, who deposited two tokens of equivalent value into the pools. Traders who leverage these funds pay a fee, which is distributed among the liquidity providers according to the value of their liquidity.
However, Constant Product Market Makers or sometimes referred to as Constant Function Market Makers (CFMM), are a class of AMM designed to function on predefined sets of prices based on the available quantities of liquidity.
Unlike the ordinary AMM, there are three participants in CFMM, the traders who exchange assets, liquidity providers who make their assets available to the protocol for a fee, and the arbitrageurs who work to maintain the price value of assets per the market price for a fee.
What Makes Uniswap Unique From Other Cryptocurrencies
Uniswap platform receives all its liquidity from its users, and liquidity providers receive a fee for their service. Compared to centralized exchanges where the central authorities receive the fees.
Currently, Uniswap pays 0.3% fees to liquidity providers, and traders pay their fees directly to the liquidity pool, enabling liquidity providers to redeem their reward anytime. In addition, they use a method of the higher the liquidity provided, the higher the reward serves as an incentive to LPs to deposit more liquidity into the platform's pool.
Uniswap also does not receive any revenue, which is unique and commendable. Further, the platform thoroughly invests in how to make its organization better and enhance the service they render to its users. In 2020 they deployed Uniswap V2, which enabled users to swap ERC-20 tokens directly. A year later, in 2021, they released Uniswap V3, which focused on Lps and liquidity pools, also introducing new features to the platform.
Factors That Influence The Price Of Uniswap
Cryptocurrencies are volatile assets by nature; therefore, some factors affect their price value negatively or positively. In this section, we will discuss three factors that affect the price of Uniswap and other cryptocurrencies
Demand
For a cryptocurrency to maintain value, there needs to be a healthy demand to meet up with supply. Most times, when a cryptocurrency is no longer in demand, its prices will drop, and if care is not taken, it could eventually lose all its value, practically becoming useless.
For Uniswap UNI, its native token is in high demand due to its governance use case. Users who hold the Uniswap token can actively participate in managing the network, how its funds are utilized, and the fees that should go to Lps. In addition, all users who vote in a proposal will receive a cut out of trading fees generated on the platform; all these features have made the token a good source of investment, driving a high demand.
Supply
When there is an excessive supply of a cryptocurrency, so much that it overshadows it, there tends to be a loss in value because of overabundance. For a token to maintain value, there needs to be a healthy scarcity, which comes from a capped supply, this will not only boost confidence in the project, but it will drive up demand. Bitcoin, the largest crypto asset in the industry, has a total supply of 21 million tokens; Uniswap cryptocurrency also has a capped supply of a billion tokens.
Black Swan Events
The covid pandemic, which struck in part of 2019 and spread to a large part of the world in 2020, led to increased crypto prices. The main reason for this is that the mainstream economy of several countries suffered a big blow. After all, there was no opportunity to export or import; workers were grounded, companies closed down, and numerous people lost their jobs.
This led more people to focus on a source of income that doesn't require mobility, and crypto came to the rescue. A few months into the pandemic, the crypto market experienced an uptrend in price action, and all crypto assets increased in price.
A year later, in 2021, Uniswap peaked at an all-time high of $44.97 after falling to an all-time low of $0.419 in September 2020.
Uniswap Past Price Performance- A Complete Price History Of Uniswap
UNI started at a floor price of $3.86; however, the token had the unique privilege of being listed on both Coinbase Pro and Coinbase a few hours after launch. The following day it shot up to $8.67, increasing by 125% overnight. However, it could not maintain momentum because it dropped below $4 after a few days. It briefly rose to $5.50 before steadily declining throughout the, finally crashing to $1.76 by early November.
The following month proved very favorable for UNI, as its market cap hit a peak of $1 billion for the first time on December 19, and by the end of the month, the token price rose to $5.16. 2021 saw UNI experiencing a 43% price surge in just a day in February. A month later, in March, UNI set a new high, reaching $36.83 and $17.6 billion as market cap.
However, it crashed again to $25.60, losing 30% of its value in a few days, but steady gains followed in April, increasing its price to $30 representing a 480% increase in value from the year's beginning. It continued to increase, setting a new all-time high of $44.97 in May.
How Is Uniswap Doing Now?
Uniswap is currently worth $5.55, a 1.45% decrease in the last 24 hours, with a daily high of $7.07 and a low of $5.34, having a market cap of over $4 billion, representing a 23.78% and a 24-hour trading volume of over $403 million which is 42.16%
The current price of UNI shows that it has lost 88.07% of its ATH, which it achieved in May 2021. However, it soars above its all-time low of $0.419 with a 1180.95% increase.
This is no small feat in this period of a prolonged bear market, where several assets have not only lost their ATH but have also crashed below it by a significant gap.
Top assets in the industry are also bearing the brunt of the bearish trend; Bitcoin, for example, has lost 75.08% of the ATH it achieved before the Bear season and has broken the $18,000 barrier. UNI, on the other hand, has a market dominance of 0.49% and currently ranks 17th in the crypto market.
Current Price Prediction Of Uniswap
UNI and other crypto assets have been dramatically affected by the current bear market ravaging the crypto industry. Several assets have strayed far away from their ATH, and prices have crashed significantly. UNI and some other assets, however, are trying to stay afloat during these turbulent times.
UNI currently trades at $5.43, a 1.45% decrease in the last 24 hours. This shows that November is not entirely favorable for UNI; however, the market may recover in the coming months, bringing along with it a massive bull run.
Short-Term Price Prediction Of Uniswap For February 2023
Much of 2021 was very turbulent for crypto assets, including UNI. The bearish season that struck the cryptocurrency market in May 2022 also made matters worse, leading it far away from its ATH. Price prediction experts have made a short-term price forecast of UNI to show its price in the coming months.
The table below shows the data of Uniswap's short-term price prediction
The price of UNI didn’t live up to its hype in 2022 as most crypto assets suffered losses in price, including the price of UNI, as the price declined from a high of $35 to a region of $4 before the price bounced from this monthly low.
Long-Term Price Prediction Of UNI For 2023
The more significant part of 2022 has been chaotic for crypto assets, with price fall and massive dumps being the order of the day. However, 2023, just around the corner, may bring a bullish run that will make all crypto assets, including UNI, surge life, reach their ATH, or even set new highs.
Crypto price experts have made a long-term Uniswap price prediction for 2023. The table below shows the data.
Long-Term Price Prediction Of UNI For 2023-2030
By 2030 UNI will have been around for 14 years, while Bitcoin will be 21; therefore, cryptocurrencies must have developed use cases that will drive a broader adoption in personal finance and mainstream economies. Price prediction experts have made a UNI long-term price forecast spanning 7 years, 2023-2030.
The table below shows data for UNI long-term price prediction by experts for 2023-2030.
Long-Term Uniswap Price Prediction By Experts
Uniswap has attracted the attention of several crypto price prediction experts, like Changelly, Trading Beast, Cryptopolitan, and Coincodex.
These experts have, after deep technical analysis, speculated what the price of Uniswap would be in the coming years and months.
However, it's important to note that these experts do not have control over the market and assets. They only made their Uniswap price prediction according to past price data of the assets. Therefore always do your research before investing in any cryptocurrency, as this is NFA (Not Financial Advice).
Uniswap Long Term Price Forecast By Changelly
One of the prominent crypto price analysts and prediction experts in the industry, Changelly, has come up with a long-term Uniswap price prediction for 2022-2031
They expect UNI to round up 2022 with an average price of $6.84 and a possible maximum of $7.04. UNI price prediction for 2023 expects it to have increased to a maximum of $11.90 and a trading price of $10.42.
According to their Uniswap price prediction, in 2024, the token will experience an increase that will take it to an average price of $14.74 and a maximum of $17.60. Moving on to 2025, it will reach an average price of $22.48 and a maximum price of $24.94. The estimated UNI price for 2026 expects it to reach a maximum price of $39.04, a minimum of $32.08, and trading at $32.98.
According to UNI price prediction by changelly 2027, it should bring the token to a high of $54.06, a low of $45.67, and an average price of $46.99. 2028 will see Uniswap reaching $65.67 as the average price and $79.28 as the maximum price. The Uniswap price prediction expects the coin to increase to an average price of $97.29, a minimum of $94, and a maximum of $110.63 in 2029. 2030, a pivotal year for all crypto assets, will bring UNI to a high of $162.77, a low of $132.09, and trading at $135.98.
2031 the year which completes the uniswap price prediction by changelly, will see the token hitting an all-time high of $228.0, a trading price of $193.76, and a minimum of $188.32 as the closing price.
These price predictions by Changelly show that the coin will continue to rise with the passing year, meaning they are pretty optimistic about the token. Nevertheless, before investing in any crypto token, always do your research; this is NFA (not financial advice)
Uniswap Long-Term Price Forecast By Trading beast
Trading beast, another crypto analyst, has made a long-term price prediction for Uniswap from 2022-2025. According to their Uniswap price prediction, UNI will end 2022 with a maximum price of $7.19 and an average price of $5.75.
The UNI price prediction by Trading beasts speculates that by 2023 it will end the year with a maximum token price of $9.78, trading at $7.82. Moving to 2024, it will increase to an average price of $10.71 and reach $13.39 as the maximum price by year-end.
2025, the year which completes the Uni price prediction by Trading beasts, will see the token reaching $16.19 as the maximum price and $12.95 as the average trading price by December.
Uniswap Long-Term Price Prediction By Cryptopolitan
Cryptopolitan, another well-known price expert, has made a long-term price prediction of Uniswap for 2022-2031.
The uniswap price prediction by Cryptopolitan expects the UNI token to close in 2022 with an average price of $6 and a maximum price of $7.46. By 2023 UNI price prediction expects the token to have risen to a maximum price of $11.15; it will continue with this pattern till 2031, when it will hit a high of $43.19, which is quite close to the ATH, it achieved in May 2021.
Uniswap Long-Term Price Prediction By Coincodex
Coincodex, another expert, devised a long-term UNI price prediction for 2022-2025.
They believe that the coin, instead of rising, will fall by 3.32% by the end of 2022, rounding off the year with $4.67 as the maximum price. However, their Uniswap price prediction for 2023 expects the token to experience a massive increase in value, reaching $11.65 and $20.20 as a maximum.
In 2024 it will continue with its streak of good luck and experience an 814.08% increase in value, reaching $44.80 as the possible Maximum and $14.92 as the minimum. 2025 which completes the uniswap price prediction, will see UNI rising to a new high of $99.38 and a low of $19.10, signifying a 1,927.70% Increase in value.
Uniswap Price Prediction By Margex Technical Analysis
Margex is a bitcoin-based derivatives platform that allows users to trade different cryptocurrency assets with 100× leverage size and at the same time make passive income through the Margex unique staking feature that provides up to 13% APY.
There is no lock-up period, and through the Margex automated system, the rewards are sent directly to the individual's staking balances, allowing them to withdraw their staked reward anytime.
The platform interface was designed to accommodate crypto newbies and advanced traders, eliminating the need to know about the crypto space before becoming eligible to earn from the industry.
Margex price experts recently conducted a deep technical analysis of Uniswap past price data to determine the price of Uniswap in coming years. This year has not been favorable as UNI has lost 88.09% of its ATH price value due to the current severe bear market ravaging the crypto industry. The token could bounce back when the market returns to normal due to its numerous use cases and growth potential.
Frequently Asked Questions- Most Commonly Asked Questions About Uniswap.
Is UNI a good investment? How high can UNI go? are some of the most commonly asked questions about this cryptocurrency. In this section, we will answer some frequently asked questions regarding Uniswap.
Will Uniswap (UNI) Reach $100?
Changelly predicts that UNI will reach a maximum price of $110.63 in 2029.
What Will Uniswap (UNI) Be Worth In 2025?
According to Uniswap price prediction by changelly, UNI will reach a maximum price of $24.94 in 2025
What Will Uniswap (UNI) Be Worth In 2030?
The long-term UNI forecast by changelly expects Uniswap to reach a high of $162.77 in 2030.
What Will Uniswap (UNI) Be Worth In Five Years?
According to UNI crypto price prediction by changelly, the coin will reach a maximum price of $54.06 and trade at $46.99.
Does Uniswap Crypto Have a Future?
Several price prediction experts have made UNI long-term Price Forecasts, showing that they are pretty optimistic about the token.
How High Can Uniswap (UNI) Get?
The UNI price prediction by changelly says that Uniswap will reach a maximum of $228.0 in 2031.
