Uniswap is a leading decentralised exchange (or DEX) that runs on the Ethereum blockchain. It enables users anywhere in the world to trade cryptocurrencies without the use of a middleman.
Uniswap, which launched in 2018, was one of the first Ethereum-based decentralised finance (or DeFi) apps to gain traction.
It makes use of a relatively new trading concept called “automated liquidity protocol.” The aim of Uniswap is to keep token trading automated and available to anybody who owns tokens while improving trading efficiency in comparison to traditional exchanges.
Uniswap improves efficiency by automating the resolution of liquidity issues, eliminating the problems that plagued the early decentralised exchanges.
UNI is the governance token of the Uniswap ecosystem that lets users vote on important protocol changes.
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Future Outlook of UNI
With a market capitalization of $4 billion, UNI is currently trading at $5.33. It has lost 8.68% in the last 7 days and is down by 88.15% from its all-time high of $44.97 (recorded on May 3, 2021).
Given that UNI has breached the $40 barrier in the last bull run, and the value proposition offered by the Uniswap ecosystem remains more or less the same, it can do the same in the next bull run.
Also Read: Here’s How Much Your $1000 Invested In Bitcoin 10 Years Ago Will Be Worth Today
How Much Money You Would Make if UNI Reaches $40?
Let’s say you invest $100 in UNI today. At the current market rate ($5.33/UNI), $100 will get you approximately 18.76 tokens. If UNI touches $40, your $100 would be worth $750, giving you an ROI of 650%.
Let’s assume that you buy $1000 worth of UNI tokens today. At the current rate, you will have approximately 187.61 tokens. Your $1000 investment will be worth $7504 if liquidated at the price of $100. If UNI hits the $40 mark in the next 3 years, you will get an annualised ROI of 95% on your investment.
It is important for anyone considering investing in any cryptocurrency to carefully research the asset and understand the risks involved before making any investment decisions.
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