Uniswap Price Prediction | Is UNI Coin a Good Investment?

The Uniswap DEX took the world by storm. Can the boom continue into 2022?

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The uniswap (UNI) token was a hit with cryptocurrency traders in 2021, enjoying considerable gains over its short lifespan. But coming into 2022, the decentralised exchange (DEX) token encountered a downturn as the altcoin market went into a decline.

Despite its native token’s bearish performance, however, Uniswap also hit a major milestone in May 2022: total trades on the DEX exceeded the $1trn mark.

Now trading at $5.44, what can we predict for UNI going forward? If you are looking to get the lowdown on all the latest stats and forecasts for this surprisingly successful cryptocurrency, join us below as we look into the UNI token price prediction for the coming years.

What is the UNI coin?

UNI is the crypto token that powers Uniswap, a decentralised exchange (DEX) for trading cryptocurrencies, which is built on the Ethereum blockchain. 

Uniswap has proven extremely popular in a short space of time, with more than 94 million trades executed since Hayden Adams launched the V1 protocol in November 2018. More than $70bn (£52bn) in crypto is traded on Uniswap every month. 

The protocol incentivises users to provide liquidity pools to facilitate these exchanges, making it more decentralised than Coinbase and Binance. Unfortunately, however, many liquidity providers are failing to make a profit. According to a study by Bancor, 50% of liquidity providers are losing money because of crypto price volatility.

Prior to UNI’s launch in September 2020, these liquidity pools were generated from whatever cryptocurrency was being traded. While this system worked, the introduction of a native token allowed the Uniswap community to vote on upgrades and changes to the protocol. 

Be sure to check out our guide for a more detailed rundown on the specifics of the Uniswap platform and what it hopes to achieve. Otherwise, keep reading below for the latest UNI coin price prediction.

From airdrop to blast off: The rise of UNI

Rather than undergoing an initial coin offering (ICO), UNI was distributed to existing Uniswap users via what has come to be known as an ‘airdrop’. The airdrop was conducted in September 2020, giving users 400 UNI each, amounting to $1,200 in value.

In essence, UNI is a governance token, meaning it was designed to facilitate Uniswap’s decision-making process, rather than serve as a currency. That did not stop UNI from rising up the crypto ranks. 

When the Uniswap team announced its goal of producing “the most flexible and efficient automated market makers (AMM) ever developed” after the debut of Version 3 in March 2021, the new version aimed to increase capital efficiency fourfold over its previous version.

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As with most altcoins, an early-stage honeymoon spike in value surpassed subsequent performance, and a bull run that saw UNI pass the $40 marker in May could not quite maintain its momentum. A bearish market in the fourth quarter of 2021, which saw most altcoins struggling to maintain previous highs, then spelled trouble for the coin and it saw lows of $13.86 on 17 December 2021. 

Uniswap introduced Auto Router support on layer-2 networks, with its latest upgrades aiming at better pricing and gas estimates for its users. The features included in the update aimed to improve pricing and optimise gas cost of swaps:

  • An updated Auto Router that finds the best price across Uniswap V2 and V3 while optimising for gas prices
  • Auto Router support for Uniswap Protocol on layer-2 networks
  • Real-time gas estimates on your swap
  • Smarter auto slippage

The Uniswap team also released the full Auto Router to the community as a convenient npm package, and shared new developer tools:

  • Auto Router npm package
  • Atomic swap and add liquidity
  • Oracle-based slippage

Further updates are gearing the coin towards better gas fees and pricing, boding very well for both its short- and long-term future.

Latest position

As of 30 May 2022, UNI was valued at $5.44 against the US dollar, well below its performance for much of 2021. The circulating supply is currently 718,894,511 million coins, against a total supply of 1 billion tokens.

UNI’s Relative Strength Index (RSI) sits at 38.94, suggesting a relatively neutral pricing position.

What are the forecasters saying?

According to PricePrediction.net, a moderate uptrend is to be expected in the shorter term, reaching $6.09 by the end of 2022, followed by a target of $9.02 in 2023. According to the site, the coin will breach the $40 mark in 2028 and continue to grow from there.

DigitalCoinPrice fields a UNI coin price prediction for 2022 of $7.20. The coin is expected to reach a maximum of $8.62 in one year’s time, and an average of $12.54 in five years’ time. The UNI coin price prediction for 2025 is an average of $10.57 for the year. 

CoinPriceForecast’s UNI coin price prediction for 2030 has a modest $15.30 target by year-end, compared to PricePrediction.net’s far more bullish Uniswap price target of $122.15

Please be aware that all UNI crypto price prediction forecasts are highly speculative and do not constitute robust financial advice. Any major investment requires extensive research and input from expert advisors. Be careful with your trades and never invest more than you can afford to lose.

FAQs

Is UNI coin a good investment?

UNI has proven to be a valuable asset for early adopters, despite not maintaining its price after a honeymoon phase. But analysts are a bit more hesitant going forward: much depends on the success of the Uniswap protocol.

Where UNI coin is a good investment is up to you to decide, but always carry out thorough research before placing a trade.

How high can Uniswap go?

Forecasters have mixed feelings about this. The most bullish prediction suggests a trading value of over $122 by 2030, although most predictions stay below the $20 price barrier.

Given the volatile nature of cryptocurrencies, you should only ever invest as much as you can afford to lose.

How to buy UNI coin

UNI is available at many cryptocurreny exchanges. Currency.com offers numerous trading pairs, including UNI/USD and UNI/USDT. 

Just remember to do your own research first, and never invest more money than you can afford to lose.

Further reading