2024-02-23 20:01:49
In the recently started bull run of the crypto market, bitcoin BTC Price has been showing signs of consolidation since February 14. The same trend was observed on Uniswap’s graph for a long time, but in the last 24 hours, the cryptocurrency recorded a 40 percent increase.
The sudden jump started on February 23, at 3:24 p.m., and at 4:35 p.m. it reached its maximum at a 70% difference. The price increase started from $7.19 and managed to climb up to $12.19. At the time of writing, the token is trading at $10.69. As can be seen in the graph below, the price increase was followed by an immediate increase in trading volume – the volume increased by 1200%.
In this article, we will tell you what could be the reason behind the growth of the native token of the defi-platform and what investors should pay attention to next.
What is behind Uniswap’s growth?
Uniswap’s market showed a consolidated trend for a long time, but now its capitalization has increased by more than 40%. The project has just announced its proposals to transform the protocol’s governance system. This was submitted by Uniswap Foundation’s Head of Governance, Erin Koen. The purpose of the proposal is to “strengthen and invigorate” Uniswap’s governance model and reward UNI token holders who stake and delegate their tokens.
Uniswap exchange rate chart on February 23. Source: Coingecko.
The sudden launch of the exchange rate happened shortly after the announcement. According to the proposal, if there are no major objections, the snapshot voting will be held on March 1, 2024, while the on-chain voting will be held on March 8 are published.
It is important to remember that such sudden spikes are usually followed by an immediate correction. It didn’t happen any differently now either. It is not worth regretting if we missed a similar rise. If we buy right after that, we usually cannot expect a significant return. Despite this, it is a stable project in the long term, but late entrants are unlikely to benefit from the current jump.
Launched in 2018, Uniswap aims to enable users to conduct crypto trades without any centralized party. Uniswap’s protocol is based on Ethereum, so the supported tokens include currencies that were created according to the Ethereum standard.
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