Uniswap (UNI) has been catching the attention of investors recently, with its price on the rise. But what’s driving this increase? In this article, we’ll explore the key factors behind UNI’s price surge and offer some insights into what might happen next. Let’s take a look at this UNI price prediction article in more detail.

How has the Uniswap (UNI) Price Moved Recently?

UNI/USD Daily chart- TradingView

As of today, Uniswap (UNI) is trading at $6.41, with a 24-hour trading volume of $690.45 million, a market cap of $3.85 billion, and a market dominance of 0.19%. Over the past 24 hours, UNI’s price has seen a 5.42% increase.

Uniswap hit its all-time high on September 4, 2024, reaching $44.93, while its lowest price was recorded on November 5, 2020, at $1.77. Since reaching its ATH, the lowest UNI has dropped is $3.38 (cycle low), with a cycle high of $16.84. The current sentiment for Uniswap’s price prediction is neutral, and the Fear & Greed Index is at 27, indicating a level of ‘Fear’.

Uniswap’s circulating supply stands at 600.13 million UNI out of a maximum supply of 1 billion UNI. The current annual supply inflation rate is 3.92%, meaning 22.63 million UNI tokens were created over the last year.

Why UNI Price is Rising?

Uniswap’s (UNI) recent price surge can be attributed to its strong position in the decentralized finance (DeFi) sector. As a leading decentralized exchange, Uniswap has seen a notable increase in trading volume and liquidity, reflecting growing user confidence and activity on the platform.

The recent updates to the platform, such as improved liquidity pools and reduced transaction fees, have made it more attractive to both users and liquidity providers. These enhancements not only improve the user experience but also strengthen Uniswap’s competitive edge in the DeFi market.

Given these factors, UNI’s value is poised for continued growth. The ongoing improvements could drive further adoption, leading to increased demand for UNI tokens.

This heightened demand might push UNI to outperform even major cryptocurrencies like Bitcoin in the coming weeks, positioning it as a standout performer in the market. Investors should keep an eye on these developments, as UNI’s price could see substantial gains if the current momentum continues.

How high can the UNI price go?

The potential for Uniswap (UNI) to reach new heights is supported by several key indicators. Over the past year, UNI’s price has increased by 48%, a solid performance that highlights its resilience in the volatile crypto market.

Currently trading above the 200-day simple moving average, UNI shows strong bullish momentum, suggesting that the trend could continue upward. Additionally, UNI has experienced 16 green days in the last 30 days, accounting for 53% of that period, indicating consistent buying interest and market confidence.

However, while UNI has shown impressive growth, it has been outperformed by 53% of the top 100 crypto assets over the past year and has lagged behind major cryptocurrencies like Bitcoin and Ethereum.

Despite this, UNI’s high liquidity, reflected in its substantial market cap, provides a solid foundation for future price appreciation. It’s also important to note that UNI is still down 86% from its all-time high, leaving significant room for potential recovery.

Considering these factors, if the current positive momentum persists and Uniswap continues to innovate and attract more users, UNI could see substantial gains. While it may be challenging to surpass its all-time high in the short term, a return to levels around $16.84 (the last cycle high) is within reach if the broader crypto market remains favorable.

Longer-term, sustained platform improvements and market adoption could propel UNI even higher, potentially challenging its previous peak if market conditions align.