2021-12-21 17:46 |
Uniswap UNI/USD is an Ethereum token that powers the Uniswap automated liquidity provider.
It’s a governance token that allows its owners to participate in the decision-making process of how the platform is run.
The Uniswap V3 contracts deployment on Polygon as a catalyst for growthOn November 18, we analyzed a study where 50% of Uniswap V3 liquidity providers suffered negative returns, which called for a change.
On December 18, we saw an official announcement from the Uniswap Labs Twitter page that they will deploy Uniswap V3 contracts based on the votes that reflected over 99.3% approval consensus.
It will be submitted by a $20 million fund, where $15 million are for the long-term liquidity mining campaign, and $5 million are for the overall adoption of Uniswap on Polygon.
This approval comes in the form of an on-chain vote, where over 72.6 million users from the community participated.
This was a proposal which was published by Polygon CEO Mihailo Bjelic on November 20, which was open for voting until December 18.
This proposal argued that deploying to Polygon PoS can bring a lot of benefits, such as base growth, savings for users, higher activity, revenue, market capture, and return to the original DeFi Vision.
Bjelic also noted that it was the right moment for Uniswap to deploy on Polygon, which would cite their position as the second strongest DeFi ecosystem after Ethereum L1.
Should you buy Uniswap (UNI)?On December 20, Uniswap (UNI) had a value of $14.22.
To get an indication as to exactly what kind of value point this is for the token, we will go over its all-time high value as well as its performance last month.
The all-time high value of the Uniswap (UNI) token was on May 3, when the token reached a value of $44.92.
Here, we can see that on May 3, the token was $30.7 higher in value, or by 215% when compared to its value on December 20.
When we go over the token’s performance in November, we can see that its highest value point of the month was on November 10, when the token had a value of $28.4.
Its lowest value point, however, was on November 28, when the token fell to a value of $18.82.
Here, we can see that the token fell in value by $9.58 or by 33%.
According to data from IntoTheBlock, Uniswap (UNI) saw $315.01 million in transactions greater than $100,000 in the last seven days.
That said, it also saw $66.61 million in total exchanges inflows and $55.26 million in total exchanges outflows within the past seven days.
With this in mind, if UNI breaks the $15 price point, it can reach $20 by the end of January 2022. However, if it drops under $10 in value, it might be worth reconsidering.
The post What will the Uniswap V3 contract deployment on Polygon mean for its value? appeared first on Invezz.
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