Uniswap's UNI Token Jumps 46% Amid Governance Upgrade Proposal and Increased Demand
Summary:
The governance token of the Uniswap decentralized exchange, UNI, has witnessed a substantial 46% surge, trading above $17. The impressive trend is backed by a 120% leap in trade volume to $1.18 billion in the last 24 hours. UNI's market cap has increased by 44% over the past week, amounting to $9.4 billion. This follows a proposed upgrade by the Uniswap Foundation to the platform’s governance for fee reallocation and elevating community involvement. The proposal received significant community backing, with the voting period continuing until March 7. Meanwhile, increased network activity signalizes the growing adoption of the Uniswap ecosystem, raising the demand for UNI tokens.
The governance token of the decentralized exchange Uniswap, referred to as UNI, has enjoyed a surge of 46%, exceeding $17 per token, a level last touched in January 2022. This impressive performance has been underscored by a dramatic 120% increase in trade volume reaching $1.18 billion in the past 24 hours. Over the week, UNI's market capitalization has grown by 44% to a substantial $9.4 billion, making it the 16th largest cryptocurrency in terms of market cap. This positive trend follows Uniswap Foundation’s announcement of a proposed upgrade to the governance system for fee redistribution, aimed at boosting community participation. This upgrade specifically aims to allocate the protocol fee to UNI token owners.
Uniswap Foundation made this announcement through a statement on February 23rd. The proposal aims to improve the UniswapV3Factory contract owner's capability to enable seamless and systematic collection of protocol fee revenue. The Uniswap community has received this initiative positively as it will bolster the decentralized exchange’s governance structure and provide UNI token owners with an increased role in decision-making processes.
The proposal voting began on March 1 and will continue until March 7. The Uniswap Foundation reports that the proposal has seen significant community backing. As of 11:00 pm ET, an overwhelming 100% of the 55 million UNI votes are in agreement with the upgrade.
Data from blockchain analytics platform Lookonchain reveals a surge in UNI accumulation by a whale, with purchases exceeding $12.5 million within the last 48 hours. Further data from the token terminal cites a rise in Uniswap’s network activity. As per the chart below, the daily user count has doubled from roughly 75,000 in October 2023 to 168,106 as of March 2. This indicates a rise in the Uniswap ecosystem adoption, leading to increased demand for UNI tokens.
UNI has witnessed a leap of over 143% from a low point of $7 on February 23, reaching a high of $17.03 on March 6, as per data from Cointelegraph Markets Pro and TradingView. The relative strength index (RSI) shows an upward trend, with a strength of 87, affirming the buyers' stronghold on the market.
The sustained buying attempt will likely push UNI to retest the $17 high before challenging the $20 resistance level. However, the RSI signals overbought conditions for UNI, suggesting a potential trend flip that could bring an end to the token's bull run. This article neither offers investment advice nor recommendations. Each investment and trading decision carries risk, hence readers should undertake detailed research before reaching a decision.
Published At
3/6/2024 10:58:01 PM
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