The Uniswap price has bounced back in the past few days. UNI, its native token, has risen in the past three straight days. It is trading at $16.80, which is about 28% above the lowest level this month. Its market capitalization has risen to more than $7.6 billion, making it the 27th biggest cryptocurrency in the world.
Uniswap launches in Polygon
Uniswap is one of the biggest decentralized finance (DeFi) platforms in the world. According to DeFi Llama, the platform has a total value locked (TVL) of more than $8.7 billion. This makes it the 9th biggest DeFi platform in the world. It has facilitated transactions worth more than $600 billion this year.
The idea behind Uniswap is relatively simple to understand. The developers built a decentralized platform in which people from around the world can buy and sell ERC tokens. It is a decentralized platform, meaning that users don’t need to have accounts.
Also, decisions are made by the members of the network. This is relatively different from how centralized platforms like Coinbase and Binance work. In these platforms, decisions are made by their leaders. They also make decisions about their profits. In Uniswap, the fees collected are divided among the UNI token holders.
Uniswap, like most DeFi platforms, is built in Ethereum’s network. This means that it is relatively slow and the transaction costs are a bit high.
Therefore, like many Ethereum DeFi platforms, the developers decided to launch the network on Polygon. Polygon is a layer-2 platform that helps to scale other Ethereum-built platforms like Uniswap. People who use this alternative find it to be a bit faster and significantly cheaper. Other platforms that have migrated to Polygon are Aave and Curve Finance.
The migration was supported by more than 72 million UNI token holders. This explains why the Uniswap price has jumped.
In response, the Polygon MATIC price surged to an all-time high.
Uniswap price prediction
The daily chart shows that the UNI price has been under pressure in the past few months. It has crashed by more than 65% from its highest level this year. Also, in November, it managed to move below the symmetrical triangle pattern that is shown in green. After the breakout, the coin retested the lower side of the triangle in December and then resumed the bearish trend.
The Uniswap price appears to have formed a strong support at about $13.66 recently. It is now attempting to move above the 25-day moving average while the MACD has made a bullish crossover. Therefore, there is a likelihood that the price will keep rising as bulls target the key resistance at $20.
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