Going through the top 50 cryptocurrencies by market capitalization, you expect to see layer one blockchains, high-profile stablecoins, and fan-favorite coins and tokens on a run-up. However, one token stands out amongst the top 50 for its unique utility: the Uniswap (UNI) governance token.
But what is the UNI token? How has this governance token made its way into the top 50 cryptos for almost a year now? Let’s take a look at what this token does for the Uniswap ecosystem and how it has achieved its success over 2021.
What is Uniswap?
Uniswap is a liquidity protocol on the Ethereum blockchain. In the protocol, people can submit liquidity to different trading pairs of cryptocurrencies. From there, the protocol acts as an automatic market maker (AMM) where it uses smart contract functionality to create liquidity pools, trading pairs, and asset swaps.
Unlike other DeFi (decentralized finance) applications, the UNI token isn’t a liquidity or staking reward token. Instead, the token is for their governance program. With governance, holders of the UNI token can propose and vote on community proposals that ideally improve the protocol and community as a whole.
This community-driven voting mechanism provides Uniswap with its decentralized nature. By keeping the development of the protocol in the hands of participants, the protocol improves the chances that it will excel as the Ethereum ecosystem continues to develop.
Uniswap price Euro
At the top of this page, you can see the live Uniswap price. Also, you can see the Uniswap price graph. In 2021 the highest Uniswap price was €37,78 in May and the lowest price was €3,50 in January. This is an increase of 979%. The price point of €37,78 is the all-time-high Uniswap price.
From a fundamentals standpoint, Uniswap continues to seem like a promising asset for the next few years. With billions of dollars in market cap and tens of billions each year in trading volume, Uniswap is a prominent part of the Ethereum financial ecosystem. With the many partnerships the V3 version of Uniswap has, it seems unlikely for Uniswap to fail over the next few years.
Despite difficulties in price appreciation in 2021, the UNI token has solid fundamentals backing its worth. The market of 2021 has shown that $14 was the price floor for this token that, in 2020, was far away from a $5 price point.
There is also no indication that the Ethereum blockchain, the blockchain Uniswap runs on, is going anywhere any time soon. Uniswap is positioned to see gains in the long term.