The price of Uniswap has crashed in the past two months as the altcoin retreat continued. UNI dropped to $9.2450, down more than 52% from its highest level in November 2024.
So, is the Uniswap token a good buy, as the V4 network saw inflows ahead of the Unichain launch?
Uniswap V4 Is Growing
The primary catalyst for the Uniswap price was the recent V4 launch on networks like Ethereum, Polygon, Arbitrum, Base, BNB Chain, and Avalanche.
This version introduced hooks, or contracts, that let users customize how pools, swaps, fees, and LP positions interact. V4 also lowered trading fees further and introduced native ETH support.
The Data from Uniswap Labs shows the V4 network is growing, with the liquidity hitting almost $50 million. Most of these funds are in the Ethereum network, followed by Arbitrum, Base, BNB Chain, and Optimism. The most popular tokens traded in that version are Flinchy, Pepe, and Mog Coin.
The data also shows that Uniswap’s trading volume is rising. In the last 30 days, the network handled transactions worth over $107 billion, and in the last 7 days, it handled transactions worth over $26.6 billion.
These numbers make it one of the most successful players in the DEX industry, even as competition from Raydium, Meteora, and Orca rises.
The next important Uniswap catalyst is the upcoming Unichain mainnet launch. Unichain will be Uniswap’s dedicated layer-2 blockchain that will unite its platform across all chains.
It will introduce cross-chain liquidity, cheaper execution, and instant transactions. Its block times will start at 1 second and drop to 250 milliseconds over time.
Most notably, Unichain will be a decentralized chain where validators and stakers earn 65% of its revenue.
Meanwhile, CoinGlass data shows that exchange balances dropped from 68 million to 64.3 million earlier this month. It has moved to the lowest level since December 14 last year.
Uniswap Price Forecast
The weekly chart shows that the UNI price peaked at $19.33 in December and has retreated sharply to below $10. It moved below the important support level at $17, the upper side of the cup and handle pattern.
Uniswap has also moved slightly below the 50-week and 25-week moving averages. On the positive side, the coin forms a doji candlestick pattern, a popular bullish sign. Such a move will point to further gains to the next key resistance level at $17, about 87% above the current level.
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