Uniswap, the leading decentralized exchange (DEX), achieved a staggering $2.9 billion in daily trading volume, placing it at the top of decentralized application (dApp) rankings.
What drove Uniswap’s success?
Uniswap’s expansion into layer 2 networks is one of the major drivers of its 2024 success. With the help of Unichain, a layer 2 solution launched in mid-October 2024, it has seamlessly interacted with other layer 2 networks within the Optimism ecosystem.
For example, it added Base, a Coinbase-backed Layer 2 solution, and Worldcoin and Mantle to its ecosystem.
Tom Wan, a researcher at 21.co, noted that Uniswap’s layer 2 volumes have experienced more than 650% growth in 24 months. This reflects a significant increase from around $4 billion in 2022 to roughly $30 billion this year.
Besides its integration with L2s, both novice and experienced traders are able to easily access the platform because of its user-friendly interface and innovative automated market maker (AMM) model.
Other key milestones that added value through the year include the launch of Uniswap v4, governance improvements, and security enhancements.
Uniswap v4 introduced innovative tools like hooks, enabling developers to customize liquidity pools by attaching smart contracts. This reduced gas costs and the cost of creating new liquidity pools, which increases returns without constant monitoring.
Furthermore, the Uniswap Foundation invested $995,000 to strengthen the protocol’s governance by fostering delegate collaboration. This supported events and workshops that enhanced delegate interaction, participation, and governance functionalities.
A commitment of $2,742,195 enhanced comprehensive audits of Uniswap v4 and the protocol’s Governance Smart Contracts. This ensured the continued security and reliability of the platform.
Uniswap (UNI) price prediction
The Uniswap token started 2024 trading at approximately $6.5, double its initial listing price, and at a market cap of approximately $3.89 billion. It went on to achieve an annual high of $18.6 during a bullish period in 2024.
However, it did not achieve its all-time high of $44.97 from May 2021.
UNI/USD price, RSI, and MACD (Source: TradingView)
The UNI price is currently trading at $14.464 at a market cap of $8.63 billion. An RSI of 53.12 indicates a slightly bullish sentiment, providing a balanced entry point for traders considering positions in the token.
The MACD is slightly above the signal line, reinforcing the bullish momentum shown by the RSI. This indicates a potential buying opportunity or the continuation of an upward trend.
In a recent tweet, crypto enthusiast Mad Dawg expressed enthusiasm for the performance of the Uniswap token ($UNI), noting its price surge at the beginning of 2025. He reported a confirmed breakout with two consecutive days of gains, suggesting potential price targets between $15 and above $20, contingent on Bitcoin surpassing $100,000.
Uniswap’s growing dominance indicates a rising acceptance of decentralized financial services among retail and institutional investors. Its success is likely to encourage further innovation in the DeFi space as competitors work to develop new features and enhance user experiences to capture market share.
Read more: Binance Hits 250M Users: Is Crypto Finally Going Mainstream in 2025?
