In the article titled “What is Binance Coin (BNB),” we illustrated an exchange that, for the purpose of its business, created its own token. However, the example of Binance is not unique. This time, we will introduce you to another exchange project that also decided to adopt a coin to support its business.
A brief history of Uniswap (UNI) and its technical aspects
Uniswap (UNI) is a decentralized cryptocurrency exchange (DEX). At this point, it is worth explaining what distinguishes this type of platform. First of all, when trading on them, it is not necessary to go through the KYC procedure. This means that the identity of the people using their services is not known. In turn, the funds we have are not stored on the exchanges, so they only provide a space for token exchange. An important advantage is also the fact that many new projects gain momentum on DEX before they go public.
Uniswap is one of the most popular decentralized cryptocurrency exchanges by far. It was created in 2018 by Hayden Adams, who became famous in the blockchain world as one of the developers of Ethereum. He was also supported in constructing the project by Noah Zinsmeister and Dan Robinson.
Through Uniswap we can exchange tokens based on the Ethereum blockchain. Having our coins in ERC20 standard, we place them in the so-called liquidity pools. Thanks to this, connections are made in pairs of transactions, which in turn are more than two thousand. The funds placed in the pools are completely controlled by smart contracts. Right after the transaction, they go directly to the user’s wallet.
The exchange also has its own token, more widely known by the acronym UNI. It was launched on September 17, 2020. This was done as part of an airdrop in which the UNI token was given to users of the Uniswap platform who used the exchange’s services and made at least one transaction on it before September 1, 2020.
Price Development of Uniswap (UNI)
Since Uniswap (UNI), is a fairly young project and has not yet experienced any speculative bubble, its price action is not among the most spectacular. The token’s initial trading oscillated around $3.86, reaching its first key All Time High on the very second day of trading. This was, of course, on September 18, 2020, and the price achieved by UNI was $8.67. After the fact, a correction of almost 80% occurred, and its bottom fell on November 5 of the same year, at a valuation of $1.76. However, as the platform’s popularity grew, UNI began to soar. This to be valued at around $33.00 just 3 months after its bottom. In such a short period of time, the growth of over 1700% is at least impressive.
It is worth noting that despite the young age of the project, it has broken through to the TOP 20 of cryptocurrencies with the largest capitalization. Dynamic growth allowed the coin to achieve market dominance of 1% in mid-February 2021. In turn, the total supply of UNI is planned to be 1 billion coins.
Uniswap (UNI) opportunities
It can certainly be assumed that the momentum with which Uniswap (UNI) has entered the cryptocurrency market reflects the quality of the project. It emphasizes the need for decentralization, or a kind of anonymity in the exchange of value, in a blockchain environment. Simply put – Uniswap meets the expectations of its users. We are personally curious what DEX’s developers have in store and if they plan to use their token in any particular way. We will be looking into it, and we encourage you to do the same!