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Uniswap: Should you Invest in UNI Coins?

Uniswap is one of the leading most names in decentralized finance (DeFi). In terms of market cap, it is the 12th largest cryptocurrency globally. Though the Uniswap project was launched in November 2018, its native coin UNI was launched in September 2020. This means it has been launched just 1-year back. 

In the last 1-year (Sep 2020 to Sep 2021), the price of UNI has increased by +433%, catapulting its market cap to over US$12.8 billion. If we consider the all-time high (ATH) price reached on May 03, 2021, at US$44.97, the price of UNI has increased by more than +1,053%. 

The fundamental value of the UNI coin is also catching up to expectations. The total value locked (TVL) by the UNI token holders is estimated to bed around US$6.41 billion. The TVL coins are pledged in the network protocol’s smart contracts. 

Uniswap is a decentralized exchange that offers traders and investors a wide array of altcoins. In fact, you can also earn a high rate of interest by staking cryptocurrency exchanges on Uniswap’s DEX to provide liquidity. Ethereum developer Hayden Adams is the inventor of the Uniswap platform, who introduced AMMs on Ethereum to a wider audience. 

Does that mean that you can use Uniswap safely for adding muscle to your cryptocurrency portfolio? The answer is dependent upon various aspects. The most important aspects you have to know are the basics and fundamentals of the protocol, its use-value in the real-life, the price prediction in the short run and long run, and many more. 

Let me walk you through all these aspects so that you can make a decision regarding investing your money in Uniswap (UNI).

What is Uniswap (UNI) Coin?

UNI token is the governance token of the Uniswap decentralized exchange. Uniswap DEX is the largest decentralized exchange in the world, in terms of market capitalization. In the market, its popularity can be compared to that of the popular Ethereum Dapp (decentralized application). 

A very important role is played by Uniswap to carry forward innovation as well as adoption throughout the cryptocurrency market. A recent Dune Analytics report has said that due to the record growth of the Uniswap project in 2021, the UNI governance token’s market share has gone up by 63%. 

Uniswap Protocol

This protocol enables crypto buyers and sellers in exchanging ERC-20 tokens in a trustless as well as permissionless way. ERC-20 tokens are popular, residing on the Ethereum network. They are interoperable among all ERC-20 compliant wallets, Dapps, and exchanges. With the rise of DeFi (decentralized finance), there has been a sharp rise in its use

Uniswap DEX: Largest Decentralized Exchange Globally

Being the largest DEX, Uniswap has brought a fundamental shift in the market. It offers crypto traders and investors a safer alternative to centralized and larger cryptocurrency exchanges. 

The main problem with the centralized exchanges is that they work in a custodial way and also keep a large number of users’ cryptocurrencies in in-network wallets. The main problem with these in-wallets of crypto exchanges is that they remain the prime targets for hackers. 

However, in the case of DEX decentralized crypto exchanges, they are non-custodial in nature. DEXs don’t hold your funds and cryptocurrencies directly, thereby protecting your funds from hackers. You should choose decentralized exchanges such as Uniswap because it inherits the blockchain benefits, on one hand, and does away with the drawbacks of centralized crypto exchanges. 

Uniswap (UNI) Coins: Facts & Figures

All these facts and figures will help you to make a decision on investing in Uniswap by making UNI price predictions:

  • UNI cryptocurrency price (Current): US$21.20 (as of Sep 21, 2021)
  • Trading Volume (24 hour): US$653,372,439
  • All-Time High (ATH) Price: US$44.97 (reached on May 03, 2021)
  • All Time Low (ATL) Price: US$0.419 (reached on Sep 17, 2020)
  • YTD (Year-To-Date) Return: +336.95% (Jan 1, 2021 to September 21, 2021)
  • Market Cap: US$12,951,908,863
  • Crypto Rank (in terms of market cap): 12
  • Fully Diluted Market Cap: US$21,184,266,739
  • Max Supply: 1,000,000,000
  • Total Supply: 1,000,000,000
  • Circulating Supply: 611,643,723.83 UNI (61%)

How does Uniswap Work?

The traditional order book model is eliminated by Uniswap. In its place, it has incorporated an automated market maker (AMM) protocol, allowing users to trade with a liquidity pool (a smart contract). This approach followed by Uniswap provides open access to the market, allowing everyone the ability for:

  • Swapping or adding tokens to a pool for earning fees
  • Listing a crypto token on Uniswap decentralized exchange

The tokens are pooled by Uniswap into smart contracts, enabling traders and investors to trade against these liquidity pools. The automated liquidity protocol used by Uniswap pairs all tradeable tokens against Ethereum coins (ETH). ERC20a are converted to ETH through swap transactions of ERC-20 to ERC-20. 

What Problems Does Uniswap (UNI) Platform Solve?

Uniswap solves some of the toughest practical problems of the market. The decentralized nature of Uniswap exchange helps in:

  • Eliminating the power/control accumulated by the leading cryptocurrency exchanges like Coinbase and Binance.
  • Providing international finance liquidity to new businesses. 

Benefits of Uniswap

Uniswap DEX:

  • Is flexible to use.
  • Is censorship-resistant.
  • Offers the ability to trade more than 1,600 cryptocurrencies.
  • Offers high security from hackers and other online scammers.
  • Provides more privacy protection than centralized exchanges through permissionless protocols.
  • Provides enhanced compatibility with 3rd party integrations that are in line with the standard requirements of the ERC-20 token. That’s why the investors have the ability to use external tools in their trading strategies. Users can use market management tools, automated/semi-automated trading bots, and multi 3rd party interfaces for improving the UX of Uniswap.

Uniswap Price Prediction 2025 and 2030

The long-term prospect of Uniswap coins, UNI, is extremely bright. As it is the first and largest decentralized exchange, it has the first mover’s advantage and more TVL (total value locked) than others such as Pancakeswap (built on Binance Smart Chain) and other DEXs. The demand for this cryptocurrency exchange will keep on increasing in the coming years. Analysts believe that the price of UNI will reach US$65 by 2025. 

Experts believe that there are high chances for the UNI token holders to earn a certain percentage of trading fees (just like what you earn by staking or lending tokens). Though it is a rumor currently, its possibility, in reality, is not unnatural. If this happens, there is a high possibility for the price of Uniswap to increase to US$90 or more. 

How to Buy Uniswap (UNI)?

You can buy Uniswap (UNI) coins from almost all leading cryptocurrency exchanges. Some of the best ones are mentioned below:

  • Coinbase: Best in the United States.
  • Binance: Canada, Australia, Singapore, United Kingdom, and most parts of the world.
  • Easy Crypto: South Africa, New Zealand, and Australia

You can also invest in UNI coins in the United States through an IRA. It is available on iTrust Capital.

How to Store Uniswap (UNI) Coins?

UNI tokens can be stored in any wallet that is compatible with ERC-20 tokens. Ledger Nano X and Ledger Nano S are the best cold storage for your UNI tokens. 

Invest in Uniswap UNI and Other Cryptocurrencies

You can buy and sell UNI and other cryptocurrencies against various fiat currencies (US Dollar USD, British Pound, Canadian Dollar CAD, South Korean WON, Singapore Dollar, Chinese Yuan, Hong Kong Dollar, etc.) through a wide array of crypto exchanges (centralized or decentralized exchanges). Use Dollar Cost Averaging DCA strategy to invest in cryptos to minimize the risks associated with high volatility. 

If you want to increase your investment explosively in the coming 5-to-10 years, buy crypto coins now. Keep an eye on the market news, price statistics, block times, blockchain news, and others to time your trading of Defi systems and tokens for maximum profit. 

You can also diversify your crypto coin portfolio by including other cryptocurrencies such as Uniswap UNI, Ripple XRP, Bitcoin Ether ETH, Bitcoin Gold (also called Bit Gold), Bitcoin Cash BCH, Basic Attention Token, Ethereum Classic, Binance Coin, Wrapped Bitcoin (some also call it wrap bitcoin or wBTC), USD Coin, Gemini Dollar, ERC20 tokens (created on Ethereum blockchain), nonfungible tokens NFTs, and others. 

Also, invest in various types of stocks, mutual funds, index funds, real estate, and others to improve your personal finance. If possible, get help from a portfolio manager or wealth management firm for maximum return. 

Invest in NapBots: A Dynamic Cryptocurrency Index

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NapBots provides you various indices that include a basket of tokens with high market capitalization and are categorized by theme (such as Solana, NFT, DeFi, and others). This platform introduces an intuitive interface as well as advanced allocation tools for enabling new investors to create and manage advanced crypto indices easily.

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