- Uniswap V4 offered a ray of hope for users as far as fees are concerned.
- UNI still heavily discounted despite the recent price spike.
High transaction costs are among the biggest challenges that many top DeFi platform users face. Uniswap’s latest upgrade dubbed Uniswap V4 takes such challenges into account.
Read about Uniswap (UNI) price prediction for 2023/2024
Uniswap founder has stated that deploying a liquidity pool will be up to 99% cheaper thanks to Uniswap V4’s singleton design. This was one of the main benefits of this new iteration, which may make the DeFi protocol more attractive. The news comes at a time when on-chain volumes have been dwindling due to lower investor interest amid uncertain market conditions.
From @haydenzadams on building v4: pic.twitter.com/ZmhtPWtUQJ
— Uniswap Labs ???? (@Uniswap) June 19, 2023
In addition to cost savings, Uniswap V4 will also reintroduce support for native ETH. That decision may have far-reaching positive consequences, especially in terms of user growth. This is because Ethereum is currently the largest decentralized ecosystem. As such, native ETH support may unlock more liquidity for Uniswap.
Will UNI’s native token benefit?
The development comes amid the recent market rally after kicking off the first half of June on a bearish note. The DeFi platform’s native token will likely benefit in the long-run if the lower costs trickle down to users. UNI traded at $4.58 at the time of writing, after bouncing back by roughly 26% from its current monthly low.
Source: TradingView
UNI’s MFI indicates that there was significant accumulation in the last few days. Its RSI was approaching the neutral zone. But can it sustain the bullish momentum? Perhaps UNI’s on-chain metrics can reveal a thing or two about what to anticipate.
UNI’s weighted sentiment has seen some notable upside in the last seven days. This was confirmation that traders are optimistic about its prospects. Nevertheless, there was no guarantee that the outcome will reflect the sentiment. UNI currently lacks strong volume to support more upside.
Source: Santiment
UNI exchange flow data reflects the low volumes. Both inflows and outflows have cooled down, hence the relative calmness in the market. The supply of UNI on exchanges dropped slightly in the last seven days on account of the recent bullish momentum from the bottom range.
Source: Santiment
Exchange flows may soon experience more volumes judging by UNI’s daily active addresses. The number of active addresses dropped considerably during the weekend, but has regained some activity in the last two days.
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UNI’s bearish performance in the last few months undid most of the gains achieved since the start of 2023. Its recent bottom almost retested June 2022 lows hence the sharp accumulation. UNI still has a long way to go as far as reclaiming its former glory.