Uniswap price went parabolic on Thursday, soaring to its highest level since July 16. It has jumped by over 75% from its lowest level in August, meaning that it has outperformed most cryptocurrencies like Ethereum and Toncoin.
Uniswap launches UniChain
Uniswap, the biggest decentralized exchange (DEX) in the crypto industry, announced that it was launching Unichain.
Unichain will be a new Ethereum layer 2 network that aims to solve some of the challenges in the industry.
It will use Ethereum’s security while providing users with lower transaction costs by 95%. It will also be significantly cheaper than Ethereum and most other blockchains like BNB Chain and Solana.
Uniswap hopes that Unichain will be much faster than other networks with near-instant executions. Most importantly, users will have a multi-chain swapping mechanism that will enable users to swap tokens regardless of their chains. This interoperability will be made possible by the Optimism blockchain, one of the leading layer-2 networks.
Like other layer-2 networks, Unichain will enable developers to build applications across all industries like DeFi and gaming.
Uniswap joins other DEX platforms that have launched their chains. dYdX, a popular DEX network for perpetuals, launched its chain in 2023. Others that have created their chains are HyperLiquid, THORchain, and Osmosis.
Uniswap’s biggest challenge is that the industry is highly crowded. In addition to faster layer 1 networks like Sui, Solana, and Avalanche, Unichain will compete with popular layer-1 networks like Arbitrum, Base, and Scroll.
Its advantage is that Uniswap already has thousands of users, and handles billions of transactions each day. As such, there is a likelihood that some of these users will migrate to the new chain.
Historically, however, most of Uniswap’s volume has happened in Ethereum’s chain. For example, its Ethereum version handled $938 million in the last 24 hours or 78% of the total volume.
Uniswap price analysis
The Uniswap token price bounced back and reached a high of $8.05, its highest level on July 16. It has moved above the key resistance point at $7.9, its highest swing on September 28.
The token has moved above the 50-day and 100-day Exponential Moving Averages (EMA). Also, the MACD indicator has moved above the neutral point, while the Relative Strength Index (RSI) is approaching the overbought level.
Therefore, Uniswap token will likely continue rising as bulls target the key psychological point at $10.