Uniswap’s UNI becomes 8th largest cryptocurrency and dethrones Litecoin

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Uniswap daily transaction fees exceed Bitcoin's for the first time

The governance token of a decentralized exchange, the UNI of the Uniswap protocol has just entered the top 10 of the most capitalized cryptocurrencies, dethroning Chainlink and Litecoin. This performance can be explained by the imminent arrival of a new version of Uniswap.

Uniswap’s UNI token enters the big leagues.

After a few days of hiatus, decentralized finance tokens are making a comeback, with significant gains for most of them.

The one that performs the most in recent days is undoubtedly the UNI, the governance token of the decentralized exchange Uniswap. UNI has also entered the top 10 most capitalized cryptocurrencies and holds 8th position at the time of writing with a total capitalization of $17.2 billion.

Speculation around an upcoming major update to Uniswap has been a big part of pushing the UNI token upwards. Version 3 of the platform could be unveiled shortly. Many expect Layer 2 solutions to be integrated in order to reduce transaction costs on Uniswap.

There is nothing to date to say what will be the novelties brought by this update, but the UNI has been more and more coveted in recent days following various rumors.

Rather remarkably, this is the first DeFi protocol governance token to enter the top 10, even surpassing Ripple’s XRP and Litecoin simultaneously, according to data provided by Messari.

UNI is now the 2nd Ethereum-based token in terms of capitalization, behind USDT and far ahead of Chainlink’s LINK, which has a market cap of around $12 billion.

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Over the last 12 days, the performance of the UNI token is impressive. The token’s price almost doubled over this period, going from $18 to $35 at its highest point, which also became its new all-time high.

A protocol increasingly used despite the costs

In addition to the upcoming arrival of a significant update for Uniswap, the platform’s performance is as important as ever. On Twitter, Uniswap founder Hayden Adams highlighted several encouraging statistics about the platform’s health.

In total, during February, the volumes traded on Uniswap reached $32 billion, a new record for the platform, which at the same time exceeded $100 billion in volumes since its creation.

Although fees on Ethereum continue to skyrocket and ruin the user experience, Uniswap is as attractive as ever. A world benchmark of decentralized exchanges, the unmistakable Uniswap even competes with certain centralized platforms like Bitfinex in terms of volume.

If Uniswap version 3.0 meets investors’ and users’ expectations, the UNI token could continue to outperform. However, its entry into a discovery phase leaves room for doubt as to a potential retracement. 

But even if the technical aspect remains uncertain, the fundamental aspect of Uniswap and its UNI token reinforces investors’ bullish sentiment.

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