Uniswap Price Analysis: is it worth investing in UNI after Uniswap V3?

on Jun 23, 2021
Updated: Jun 28, 2024
  • Uniswap has seen a sharp increase in value over the past day.
  • This is the result of its Uniswap V3 launch among other things.
  • Is UNI a buy even though it is down more than 50% from its highs?

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Uniswap UNI/USD has seen a lot of updates as of recently and this bodes well for the longer-term outlook. While the coin is trading higher on Wednesday, it is still down more than 50% from its early May highs. 

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Does the dip from more than $40 to its current levels just shy of $20 represent a buying opportunity? We certainly think so and here is why.

Uniswap recent updates

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On June 17, the Gelato Network launched the G-UNI Uniswap V3 management token. Its main aim is to perpetually maintain a liquidity range between 5% and 10% with the currency price of an asset pair, where an oracle network checks the prices and rebalances the liquidity pool positions every 30 minutes. 

It also automatically re-invests trading fees for compounding returns. This boosted interest in Uniswap a bit.

Uniswap Labs, as of June 22, has its first Chief Operating Officer Mary-Catherine Lader. This is the result of the token’s drop of value throughout the previous few weeks, as the entirety of the cryptocurrency market took a hit. 

On June 23, the UNI Grants Program also announced the final wave of UGP v0.1 where they are rewarding $336,800 to 14 projects advancing the Uniswap ecosystem through robust dev tools and infra. 

These projects, when successful and launched, will improve the ecosystem and in turn, increase interest in the Uniswap platform and cryptocurrency UNI which will lead to an increased value. 

Should you buy Uniswap now?

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On June 23, Uniswap’s token UNI was worth $17.76. This being the case, it having a bullish run, and we can assume that it might get to the $20 mark with ease in the near-term. This isn’t an unreasonable target as it still implies a price that is more than half of what it traded at just a few weeks ago in May.

Furthermore, with the advancements of Uniswap V3, grants on projects that are improving the ecosystem further, as well as their new Chief Operating Officer at the lead, we could potentially see Uniswap raise its value to even $30 by the end of 2021, giving new buyers a unique opportunity to accumulate a position. Existing holders that bought at higher levels can also take advantage of the weakness and add to their positions to lower their average cost basis.

This being the case, it also has the potential of dropping back down in value after the hype dies down a bit, back to under $15, and if that happens, then it might be a sign to exit a position.

However, we aren’t anticipating a selloff to the $15 level so UNI is a good buy at $17, especially for long-term investors. 

Bottom line, not all of the 14 projects backed on UGP v0.1 might prove to be efficient, but even if one of them does, the value will go up. As such, buying UNI is a worthwhile investment opportunity to take if you have a genuine belief in the Uniswap ecosystem. 

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