- Uniswap V4 offered users a glimmer of hope in terms of fees.
- UNI still heavily discounted despite recent price spike.
High transaction fees are among the biggest challenges faced by many top DeFi platform users. Uniswap’s latest upgrade called Uniswap V4 takes such challenges into account.
Read more about Uniswap (UNI) price forecast for 2023/2024
The founder of Uniswap has stated that deploying a liquidity pool will be up to 99% cheaper due 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 are declining due to lower investor interest in uncertain market conditions.
By @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 could 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 can unlock more liquidity for Uniswap.
Will UNI’s native token benefit?
The development comes amid the recent market rally after the first half of June began bearishly. The native token of the DeFi platform will likely benefit in the long run as lower costs trickle down to users. UNI was trading at $4.58 at the time of writing, after bouncing about 26% from its current monthly low.
Source: TradingView
UNI’s MFI indicates that there has been significant accumulation in recent days. The RSI is approaching the neutral zone. But can it sustain the bullish momentum? Perhaps UNI’s on-chain stats can reveal a thing or two about what to expect.
UNI weighted sentiment has risen significantly over the past seven days. This was confirmation that traders are optimistic about the outlook. Nevertheless, there was no guarantee that the outcome will reflect sentiment. UNI currently lacks strong volume to support more upside potential.
Source: Sentiment
UNI exchange flow data reflects the low volumes. Both inflow and outflow have cooled, hence the relative calm in the market. UNI supply on exchanges fell slightly over the past seven days due to recent bullish momentum from the lower range.
Source: Sentiment
Exchange flows may soon experience increased volumes, judging by UNI’s daily active addresses. The number of active addresses fell sharply over the weekend, but has been somewhat active again in the last two days.
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UNI’s bearish performance in recent months reversed most of the gains made since the start of 2023. The recent bottom almost re-tested the June 2022 lows, hence the sharp accumulation. UNI has a long way to go to regain its former glory.
