The growth of the DeFi ecosystem continues to surprise us. This week all the attention is taken by the UNI token of Uniswap, capable of revaluing more than 550% in just 3 days.
The launch of the decentralized exchange Uniswap’s governance token was a great way to continue to gain dominance in the sector. Today we see it positioned as the largest DeFi platform according to DeFi Pulse.
To reward users who had been using the exchange since before September 1, they carried out an airdrop of 400 UNI for each of them.
At the time of this writing, that number of tokens have an approximate price of $ 2,860, since each unit has a value of $ 7.15.
Despite the great offer that was generated, as a result of many users who turned to exchanges to redeem their prize, the price of UNI has continued to climb. This has been confirming the vision of several analysts.
A 28% retracement is no problem for bulls on UNI
Only yesterday the price of UNI rose more than 100%. It is clear that volatility is reigning in its current trend.
Since its birth 3 days ago, it has not stopped rising, and despite the fact that there have been some setbacks, they have only been necessary to pick up demand from investors who take advantage of discount prices.
Yesterday after reaching a maximum of $ 8.6, the price began to fall, falling by 28%; however the bulls have regained control, and they seem ready to continue setting records.
A crypto analyst exposes through his Twitter profile his vision about UNI, explaining that its price is still extremely undervalued, and despite the fact that many of those who received free tokens sold them immediately, they will return to the FOMO when their capitalization exceeds $ 1 billion.
Another famous analyst, with a twitter profile called DCinvestor, is not surprised by UNI’s behavior, as it is the most widely used decentralized application, with fees higher than Bitcoin, and with a volume of transactions much higher than several centralized exchanges.
Ethereum network is increasingly collapsed
With the parabolic growth of DeFi, the Ethereum network has been quite stifled. This is because the vast majority of those apps are working within your chain.
Following the recent launch of the UNI token, ETH mining revenue peaked in five years, thus demonstrating network congestion, a product of more than 70,000 users rushing to claim and redeem their free tokens. While this was happening, the price of gas rose to more than 700 Gwei.
However, despite being a negative factor in the short term, Uniswap’s incredible increase in dominance within DeFi will continue to drive ETH’s network profit growth.
Ethereum version 2.0 is getting closer and closer, with which the chain’s scalability will be increased, thus reducing network congestion.
It seems that the growth of the DeFi will soon have little to stop them, as long as regulations cannot succeed in curtailing their functions.