UniSwap Price Prediction for 2021 and Future Forecasts | FXleadersUniSwap (UNI) Price Prediction for 2021: Can Price Rebound? - Forex News by FX Leaders

UniSwap (UNI) Price Prediction for 2021: Can Price Rebound?

Last updated on Sun, July 25, 2021 by
Arslan Butt • 6 min read
(%)
MARKETS TREND

UniSwap (UNI/USD) – Forecast Summary

UNI/USD Forecast: H2 2021
Price: $8-25
Price drivers: Weaker dollar, market sentiment
UNI/USD Forecast: 1 Year
Price: $15 – $25
Price drivers: Product Adoption, Market Recovery
UNI/USD Forecast: 3 Years
Price: $50
Price drivers: Adoption

 

The UNI/USD started 2021 in incredibly bullish fashion, however, that momentum has now started to slow down along with the entire crypto sector. Price peaked in May of 2021 at around $44.00 after starting the year at a little bit above $4.00. This in itself is a 10x increase and goes to show you how well price had been performing.

As the sector, led by Bitcoin, has since pulled, price has tumbled to $15, a level that has held up strongly over a long period of time.

While Bitcoin and the sector have rebounded over the past week, UNI/USD has been lagging slightly and the downtrend is still present. However, given that price has proven to be resilient at $15, we can have confidence buying around that level if price falls. Otherwise, if price can break through the $20-21 level, then we should expect another leg higher.

 

 

Current UNI/USD Price: $

Recent Changes in Uniswap prices:

Period Change ($)Change (%)
30 Days -8.2-33.8%
3 Months -10.6-38%
6 Months +13.1310%

 

UNI/USD

The financial system of the world has been largely influenced by the crypto market during the past several years. Cryptocurrency is considered the first most integral part of the crypto ecosystem and the second part has been assigned to DeFi or Decentralized Finance. In the crypto market, the launch of DeFi  is the most prominent addition as it is unlike all traditional finances. DeFi is a kind of finance that does not base itself on any central intermediaries like exchanges and banks.  DeFi is completely decentralized and runs through open-source software that can only be influenced by the consensus of its users. Currently, Ethereum is considered the most famous DeFi protocol in the world and it has been dominating the DeFi Market. However, almost 50% of the DeFi market is capitalized by Uniswap which has just launched its native coin UNI in September 2020.

In November 2018, a former mechanical engineer at Siemens, Hayden Adams created Uniswap in which many famous venture capitalists like Square ventures LLC, Andreessen Horowitz, Paradigm Venture Capital, and ParaFi invested. The biggest investment made in Uniswap was by the Ethereum Foundation with $100,000.

Decentralized exchanges (DEXs) have removed many obstacles for centralized institutions, but they also have their own problems to overcome. The most important and crucial problem in decentralized exchanges is liquidity. Uniswap has solved the problem of liquidity for exchanges to some extent as it enables the DEXs to swap tokens without relying on the liquidity created by buyers and sellers.

Uniswap is built on the Ethereum protocol and it allows users to perform the swapping of an ERC20 token. Uniswap does not charge any token fees and operates as a public good, unlike other similar platforms. Uniswap is cost-effective which means fewer fee charges at Uniswap as compared to other platforms due to the main feature that differentiates it from others, i.e., it eliminates the middleman. In simple words, Uniswap allows the users to perform transactions without the need for any intermediaries that ultimately reduces the cost of the process.

Uniswap protocol has a native token named UNI that gives its holders governance rights. It means that the UNI holder can vote on changes to the protocol. The token was firstly launched in September 2020. Uniswap is the biggest DeFi protocol in the world with a $2.9 trillion market share and it represents about 49.6% of the total DeFi market cap.

Uniswap Price Prediction for the Next 5 Years

Uniswap, developed by Hayden Adams, commenced the year 2021 with a trading price of $4.97. UNI/USD began to improve as the trend was bullish. Recently, UNI/USD hit $44.00 to record a fresh all-time high. 

At this stage, the entire sector is pulling back and we should expect further weakness until that larger trend changes. In the short term, price could fall under that important $15 and even potentially below the $8 level.

In 5 years, Uniswap is expected to grow its user base further. It might focus on newer plans to improve its protocol to make it more user-friendly. Therefore, the Uniswap price is likely to escalate to newer heights if buyers return to the sector. It might achieve more investors as it produces higher liquidity. By the end of five years, Uniswap is likely to trade somewhere around the $100 mark.

UNI/USD Factors affecting Uniswap prices:

  • Upgraded Versions of Uniswap:

The new iteration of the Uniswap protocol named Uniswap V2 was launched in May 2020 after its initial launch V1 in November 2018. The third version of Uniswap is expected to launch by the mid of 2021 and it is known as V3. Version 3 of Uniswap will decrease the cost of the process and will make it faster and more reliable.

Two of the most viable factors involved in determining the prices of Uniswap coin UNI are the environment of the general market and the launch of the Uniswap version. Previously when Version 2 was launched, the markets surged higher due to improved features of Uniswap. There is a high probability that the launch of Uniswap Version 3 will also prove beneficial for UNI as the prospects of it have already started getting priced in.

  • General Market Environment:

Apart from the upgraded versions of Uniswap, external factors like the competitor currencies and the king of the crypto market, Bitcoin, also play an important role in driving the prices of UNI coin. Bitcoin has been under pressure after crossing the $40,000 price level, but the environment is still not that bad and it could improve further, which will also push the UNI coin prices upward.

Moreover, with the Biden administration in charge, the outlook for the crypto market has started to strengthen now. It is because the two chief regulatory authorities SEC and OCC have now two crypto-friendly executives named Gary Gensler and Michael S. Barr. The prospects of the crypto market getting more famous and well known under the authority of these executives have increased and this could also favor the UNI coin prices in the future.

  • Popularity:

Uniswap is the largest decentralization application on the Ethereum blockchain. The advantages of Uniswap made it popular and helped it to triumph in record time. The features of Uniswap like user-friendly operations, integration of an external wallet, low fees, full control over one’s private keys, and comparatively high liquidity made the Uniswap protocol popular and raised UNI coin prices in such a short time. The Uniswap project was developed in just half a year with very little investment capital of only $100,000. The small investment of time and money quickly made Uniswap the most popular and reliable decentralized exchange.

The ongoing increasing popularity of Uniswap could be attributed to the feature of Uniswap that has eliminated the intermediary from the equation. This basic function of Uniswap to provide comparatively high liquidity plays an important role in boosting the prices of UNI coin in such a short period.

Uniswap in 2020:

On September 17th, Uniswap entered the market with a trading price of $2.94 and in just two days of its initial launch, the UNI coin started listing on several exchanges around the world that pushed its price to $6.96. In September, the UNI plunged to $3.98, and then at the end of the month, it returned to $5.02.  

In early October, the prices of UNI were pulled back by the market and declined to $2.57; however, it remained between $2 and $3 till the end of October. Shockingly, by early November, the UNI coin dropped to $1.80 due to massive selling pressure and by mid-November, prices reached their resistance level and remained at $3 with certain variations until December. By the end of the year, the UNI coin was trading at $4.62.

Uniswap in 2021:

On January 1st, 2021, the UNI coin was trading at $4. February was a tremendous month for UNI coin as the launch of its V3 upgrade is coming closer, the popularity of Uniswap is increasing day by day that is eventually helping the value of UNI coin. UNI reached an all-time high of $44 in April 2021.

Technical Analysis – Bearish Correction in Play

UNI/USD Price Forecast
UNI/USD Price Forecast

The technical side of UNI/USD is looking quite weak at the moment as the entire sector struggles to recapture the previous highs that we saw only a month ago.

Bitcoin has been the real driver of sector-wide weakness and that has contributed to many coins losing 40-50% of the all-time high prices.

Unfortunately, UNI/USD has been one project that has seen sharp selling in recent months, with price falling from highs of around $44 to where it is currently trading at $16-$17.

We are currently seeing price was able to rebound once again on a very important technical level at around the $15 mark. As we can see on the charts, price has tested this level three times in recent months, each time Bitcoin saw a sharp sell-off. Both times this level held up. Interestingly, these falls coincide exactly with Bitcoin’s $30,000 level.

For the time being, price still hasn’t been able to pull back above the most recent swing high at $21, which means that the downtrend is intact and also that UNI/USD is lagging the broader market from a technical perspective.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.