Will Uniswap reach $1000, $100?
|Current Market Cap||$2.5 B||Lower|
|Trading Volume||$51.7 M||Steady|
|Metric||Last 24 Hours||Trend|
|Net Social Media Sentiment||31.1%||Higher|
Will Uniswap reach $1000? An Intro to Uniswap
Uniswap is a decentralized exchange built on the Ethereum blockchain, enabling direct P2P trading without the need for intermediaries or centralized control. Distinctively, it uses an automated market maker system with smart contracts to price assets based on supply and demand. Users can contribute their cryptocurrency to liquidity pools, allowing them to earn fees and removing the need for a centralized order book. As an open-source platform, its code is freely available, allowing developers to create their own decentralized exchanges. The platform has seen updates with Uniswap v4, introducing a feature called “hooks” that allows for tailored liquidity pools, dynamic fee adjustments, and new order types. This version anticipates a myriad of pool structures and has incorporated several architectural changes to support this.
Uniswap’s native token, UNI, plays a crucial role in the ecosystem, providing governance capabilities, and entitling holders to trading fee shares. UNI can be staked for additional rewards and is tradable on various exchanges. Facing competition from other decentralized exchanges, Uniswap’s unique trading model and open-source approach make it stand out. With a market cap of $5 billion, it’s a compelling investment consideration.
Will Uniswap Reach $1,000?
To Reach $1000, Uniswap will have to rise 150 times from the current price. At $1000, Uniswap’s Market Cap would be $763.5 Billion. If Uniswap were to hypothetically rise by 25% every year, it would take it 23 years to reach $1000. Given that we have already classified UNI as a good investment, let us evaluate the feasibility of the above scenarios
- Growth needed to reach $1000 – Not Feasible
- Market Cap at $1000 – Not Feasible
- Time required to reach $1000 at a hypothetical 25% per annum – Not Feasible
Feasibility is a function of evaluating the performance of other assets (like stocks or even crypto) given the current market cap of UNI as well as its competitive situation. Feasibility improves with lower competition and lower market cap.
Overall, given the current token supply, it looks difficult for Uniswap to reach $1000. However, the scenario chances if we introduce 90% burn.
At 75% Burn, To Reach $1000, Uniswap will have to rise 15 times from the current price. At $1000, Uniswap’s Market Cap would be $76.2 Billion. If Uniswap were to hypothetically rise by 25% every year, it would take it 13 years to reach $1000. Given that we have already classified UNI as a good investment, this looks quite feasible.
Will Uniswap Reach $100?
To reach $100, Uniswap needs to grow by nearly 15.1 times, considering its current market price of $6.65.
Furthermore, the UNI token reached its all-time high value of $43.1 in May 2021 where it grew by 11.97 times in just five months (from the lowest value of $3.6 in December 2020). Thus, it grew by 2.39 times in one month during that time.
Therefore, the Uniswap token needs a minimum of 7 months to reach a price level of $100. However, it reached its all-time high value in 2021 and the economic conditions of the market are entirely different in today’s time. Hence, UNI cannot certainly show a 2.39 times growth in a month currently.
Thus, we cannot expect the UNI token to reach $100 this sooner (as calculated), instead will take much more time depending upon the market conditions of liquidity and inflation.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.