Uniswap Price Prediction: Did Uniswap V3 Launch Affect Its Future Price?

Uniswap (UNI) is an ERC-20 token issued in September 2020 by Uniswap — creators of the eponymous DeFi trading protocol and the exchange. The project itself was launched in 2018.

At Uniswap’s core is an Automated Market Maker (AMM), which is a technology that replaces the order book. Traditional exchanges would use such books to match orders so that there was enough liquidity; in contrast, AMMs fulfill orders from liquidity pools — as the name suggests, automatically, which reduces delays and slippage. Liquidity pools are generated by the people who deposit their money — or tokens, in the case of crypto — to the pool and earn interest on their deposit. They are called liquidity providers. On the other side of this equation are traders, who generally can execute their trades very quickly, thanks to AMMs. Their exchange fees form the basis for the liquidity providers’ rewards.

This system has worked quite well for Uniswap, which is one of the most known and trusted providers of such services. Both its success and the general vision for Uniswap as a decentralized, publicly owned entity prompted the project’s team to launch UNI — the governance token initially distributed to Uniswap’s early users. The token enables such users to vote on the changes to the protocol.