Key Insights:
- Uniswap role as the key automated market maker on Robinhood Chain draws in significant TVL and stablecoin volume growth.
- The Robinhood Chain launch has caught the eyes of market participants.
- UNI price achieves strong bullish momentum, pushing into overbought territory.
Uniswap is back in the spotlight this weekend for two main reasons. It registered a substantial uptick in network activity, as evidenced by some of its key metrics, and the UNI price action also responded accordingly.
It turns out that Uniswap has been playing a major role in the recent Robinhood chain launch. It is currently the main automated market maker (AMM), allowing it to secure a significant proportion of the preliminary trading volumes.
The Uniswap network revealed that it has so far handled 58% of the EVM stablecoin volume in the last 4 weeks.
The surging volumes on Uniswap have also triggered a spike in some of its key performance metrics. For example, Uniswap volume on Robinhood chain pushed as high as $500 million on 8 July.
This was just one day of trading, signaling robust uptake. Meanwhile, Token Terminal recently reported that Uniswap’s total value locked on the Robinhood chain has already crossed the $30 million mark.
UNI Price Taps Into The Network Momentum
The elevated network activity driven by the Robinhood chain not only benefited the Uniswap network but also its native token. UNI price was one of the top-performing coins in the last 7 days.
UNI price pulled off a 12% rally this week, building on the same bullish momentum that it has achieved since the start of July. It has so far rallied by about 35% from as low as $2.7 at the start of the month, to as high as $3.6 in the last 24 hours.
It is worth noting that UNI price was overbought according to its RSI at the time of observation. Despite this observation, it was back in the same consolidation range where it traded between February and May, prior to its capitulation.
This also means that despite the recent gains, UNI price remains heavily discounted, especially from its highest price point in the last 12 months. A 70% discount, to be precise.
UNI price could potentially maintain its bullish trajectory over the weekend. This is because it still has some room for more upside before encountering its next resistance zone above $4.
Uniswap Reportedly Plans To Activate V4 Protocol Fees
Can UNI price maintain its bullish momentum? A recent announcement may put the cryptocurrency on track for lower supply and consequently higher prices if demand remains elevated.
Uniswap has reportedly announced plans to turn on V4 protocol fees. This action will affect its latest pools spread out across 11 chains.
The announcement may be exciting for UNI holders because of how Uniswap has structured its fee mechanism. It burns an equal amount of UNI for all the fees collected.
Elevated network activity means more fees collected, and thus more UNI burned. Large enough fees may trigger a lower supply from the UNI burned or taken out of supply.
Just a month ago, Uniswap burned over 186,000 UNI in just one day, suggesting that the burn mechanism may have a significant impact on supply. This is why the announcement may boost investor sentiment in favor of UNI bulls.
In short, recent developments and increased network activity suggest Uniswap is well-positioned to drive growth. This could make UNI crypto one of the most interesting coins for investors to keep an eye on in the next few months as the market shifts towards real-world value.
