Not many crypto projects can boast of constant growth in their user base and turnover of funds within the network. From a fundamental point of view, it is precisely such projects that are truly interesting as trading ideas. Today we’ll look at a project like Uniswap and in this article we’ll figure out what kind of project it is and when you should start buying a token of this project.
📚 Fundamentally
Uniswap is a decentralized cryptocurrency exchange, in other words, an exchanger. It allows users to trade Ethereum-based tokens, MATIC and BNB directly from their wallets without the need for intermediaries.
What makes Uniswap unique is its automatic market making system. Instead of relying on buyers and sellers to create liquidity, Uniswap uses liquidity pools where users can deposit their tokens to enable trading. These pools operate on smart contracts and algorithmically determine exchange rates based on the ratio of tokens in the pool.
✅ The main token of the Uniswap platform is UNI. UNI serves several functions in the ecosystem.
First, it gives holders the right to vote on changes and updates to the protocol.
Secondly, UNI holders can receive rewards for providing liquidity to Uniswap pools.
Third, UNI can be used as a medium of exchange in the Uniswap ecosystem.
In the picture you can see that the Uniswap platform occupies a leading position in collecting commissions relative to its competitors.
The picture shows a clear upward trend in the number of transactions on the platform.
Moreover, this project again broke the record. Uniswap has a 64.7% share of all trading volumes in the DEX (decentralized exchange) market.
These are the kind of projects you need to add to your portfolio, and not all sorts of scam coins $PEPE $MEME and so on 💩.
Also, the platform is actively increasing the number of supported networks. Initially, Uniswap only supported Ethereum tokens.
🕯 Technical analysis
The price continues to trade within a downward channel with a slight downward angle. In fact, this is a sideways trend that has already lasted 490 days!
Below is a historically strong support level of $3.7, which is confirmed by profile volume.
The level of $3.7 has not allowed the price to go lower for more than 3 years! This means that there is a lot of liquidity below this level, which may well be collected. Taking into account the fact that the indicators are in the neutral zone and were not in the oversold zone, the liquidity collection scenario is quite realistic, but not mandatory. By all logic, liquidity should be collected on this coin below this level, since there are buyers’ stops under the profile volume passing along the support level of $3.7.
✔️ From all of the above, it is worth concluding that this project continues to develop and breaks records in all fundamental metrics relative to its competitors.
According to the technique, the coin consolidates for a long time in a relatively narrow range.
In general, we personally bought a coin for a long-term portfolio at current levels with a willingness to buy more in the region of $2.2-2.5.
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