On-Chain Analysis: Why UNISWAP (UNI) Price is Poised to Cross $50 By End of May

Decentralized Finance (DeFi) and Automated Market Maker (AMM), Uniswap is poised to see an increased run in its price following the bullish tickers from both the coin’s fundamentals as well as on-chain metrics. As the entire cryptocurrency and DeFi ecosystem sojourns to new heights, Uniswap and its native token ‘UNI’ also appear to be recording increased embrace. 

Recent data from crypto data analytics provider Glassnode showed that the total number of new Uniswap addresses per a 7-day Moving average has reached a 1-month high of 118.887. This data is indicative of the growing number of both retail and institutional investors stacking up on the token built as an ERC-20 asset atop the Ethereum blockchain.

Per price action, Uniswap (UNI) appears to be paring off its month-long gains wherein it surged to a new all-time high (ATH) of $39.52. The digital token is currently exchanging hands at $35.70, down 3.56% in the past 24 hours according to data from CoinMarketCap. Bearish as it may, Uniswap is on the verge of a massive breakout, especially as the AMM protocol looks forward to its proposed Uniswap V3 upgrade scheduled for May 5, 2021.

The Anticipated Uniswap V3 May Impact Uniswap’s Price Breakout

After a successful rollout of the Uniswap V1 as a proof-of-concept for AMM systems back in November 2018, and the launch of the Uniswap V2 in May 2020, the decentralized exchange has announced its plans to launch the Uniswap V3 protocol on May 5, 2021.

As one of the go-to AMM protocols powering the fast-growing decentralized finance marketplace, the introduction of the Uniswap V3 protocol will arguably make the trading platform the most efficient Automated Market Protocol yet to be designed. With features ranging from concentrated liquidity to multiple fee tiers amongst others which are value-packed for the users, the Uniswap V3 upgrade will make Uniswap gain a bigger share of the growing DeFi market, all to the benefit of its token.

The anticipated protocol improvement as well as the growing number of new UNI addresses negates the current bearish price outlook and lends credence to the potentials of the coin to hit a new ATH of $50 in the mid-term.

The post On-Chain Analysis: Why UNISWAP (UNI) Price is Poised to Cross $50 By End of May appeared first on Coingape.