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Uniswap (UNI) Trends Higher After Polygon's Proposal For Integration Gets Strong Support

Uniswap (UNI) Trends Higher After Polygon’s Proposal For Integration Gets Strong Support

Posted Friday, December 3, 2021 by
Aiswarya Gopan • 2 min read

One of the leaders in the DeFi space, Uniswap (UNI) is one of the few cryptos trading in the green on Friday, despite the sluggish price action in Bitcoin and other major digital tokens. At the time of writing, UNI/USD is trading at around $21.84.

One of the biggest drivers of the bullish price action in the token could be rising interest among institutional investors in its potential. Earlier this week, DeFi Technologies announced the launch of a Uniswap-based ETP, Valour Uniswap ETP on Stockholm’s Nordic Growth Market (NGM). The issuer of digital asset ETPs, Valour, added the leading DEX to its portfolio on account of its strong growth and high trading volume over the past year.

According to Chief Strategy Officer at the firm, Diana Biggs, “We chose to launch Valour here in December 2020 and we are now listing our pioneering UNI SEK product so that investors can benefit from the growth Uniswap is experiencing. At Valour, our mission is to provide investors with the opportunity to gain. We are extremely excited with the growth of DeFi and are working hard to bring more innovative products such as Valour Uniswap ETP to market, making this important ecosystem of innovation available via mainstream investment channels for the Nordic markets.”

Will Uniswap Integrate With Polygon?

Meanwhile, there is some excitement in the air as a recent proposal to deploy Uniswap on Polygon received support from members of the DEX’s community. Participants who cast their votes on the proposal were nearly unanimous in expressing support for the integration as it could bring about significant efficiency in terms of transaction processing and reduced transaction processing costs for Uniswap users. The proposal received almost 7.8 million votes in favor on the DEX’s governance portal, and if it clears the next stage of “Consensus Check” soon, it could increase user activity on the ecosystem and support UNI’s price.

This is especially interesting if you consider recent research by Kaiko which reveals that high gas fees on Ethereum keep smaller retail investors off DEXs like Uniswap, leaving most of the activity on such platforms to whales or large holders. According to Kaiko Research, while Uniswap V3 corners the lion’s share of the market in terms of trading volume on a weekly basis, high gas fees to the tune of $100 restrict their use to whales, with average trade sizes on the platform ranging between $10,000 and $20,000 per day.

UNI/USD Technical Analysis

Recent analysis by crypto whale tracker WhaleStats suggests more upside for UNI, listing the token among the leading ETH-based altcoins being accumulated by the largest Ethereum wallets lately. Uniswap’s token is the fifth most popular token being accumulated by Ethereum whales, a key factor supporting the bullish price action in the token.

UNI/USD

Taking a look at the H4 price chart of UNI/USD, we find a bullish bias among most of the moving averages and the momentum indicator. However, the 200 EMA and the MACD are suggesting some selling interest in the market as well.

Uniswap’s price is holding above the pivot point at $20.32 but is yet to test the immediate resistance at $22.14. Let’s wait and see if buyers can overcome this level in the near term.

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