Uniswap launches UniswapX protocol, causing UNI price to jump 3%

Leading decentralized exchange (DEX) Uniswap is owned by announced Launch of UniswapX, a permissionless and open-source protocol for trading in automated market makers (AMMs) and other liquidity sources.

According to the announcement, UniswapX aims to improve self-custody swapping by offering better prices through aggregation of liquidity sources, gas-free swapping, protection against maximum extractable value (MEV) and no costs for failed transactions. To do and increase on-chain trading. ,

Uniswap Latest Protocol Launched

UniswapX addresses the fragmentation of liquidity pools resulting from the increasing complexity of on-chain routing and the growing number of optimized pool designs.

The protocol outsources the routing complexity to a network of third-party fillers who compete to fill swaps using on-chain liquidity such as AMM pools or their private inventory. This allows swappers to use the Uniswap interface without worrying about getting the best price and ensures that transactions are always transparently recorded and settled on-chain.

As per the announcement, gas-free swapping is a key feature of UniswapX. Swappers sign a unique off-chain order, which is then submitted on-chain by fillers who pay for gas on the swappers’ behalf.

This eliminates the need for swappers to hold native network tokens on-chain to pay for gas or trade. MEV protection is also provided by UniswapX, which returns the MEV that would be left on the table for swappers to capture by arbitrage transactions through better prices.

UniswapX also plans to launch a cross-chain version later this year that combines swapping and bridging into one seamless operation.

It will provide users with the ability to exchange between different blockchain networks in a seamless and trustless manner. This is made possible through the use of bridges, which are specialized smart contracts that enable the transfer of assets between different blockchain networks.

Furthermore, instead of receiving bridge-specific tokens, users can choose which assets to receive on the destination chain.

UNI had to retreat due to strong resistance.

Following the announcement of the launch of the UniswapX protocol, Uniswap’s native token, UNI, saw an increase of about 3% in price. The UNI rose to a high of $6.152, not seen since April 2023. The excitement generated by the launch of this new protocol led to an increase in demand for UNI, as traders expected a better user experience and better prices for on-chain trading.

However, UNI faced a strong resistance line at this same level, which caused the coin to retrace and lose all gains generated by the announcement. Currently, UNI is trading at $5.738, down 1.4% in the last 24-hours. Despite this recent drop, UNI has posted significant gains with an astonishing 28% gain over the 30-day time frame.

On the other hand, according to the token terminal statisticsThe market cap (circulating) of Uniswap currently stands at $4.76B, showing an increase of 28.3% over the past 30 days. The market cap (fully diluted) is $5.77 billion, up 26.01% over the same period.

Uniswap’s Total Value Locked (TVL) currently stands at $3.67B, a decrease of 0.54% over the past 30 days. The price to fee (P/F) ratio (fully diluted) stands at 17.50x, indicating that the market values ​​Uniswap’s future earning potential at a premium. Uniswap’s trading volume (YoY) is $349.19 billion, showing a decrease of 8.05%.

In terms of user activity, Uniswap has an average of 69,640 daily active users over the past 30 days, representing an increase of 2.7%.

Featured Image from Unsplash, Chart from Tradingview.com