UNI price climbs 9% as Uniswap explores new layer-2 integration

UNI, the native token of decentralized exchange (DEX) Uniswap, is up 9%, making it one of the top gainers in the crypto market today.

At the time of this writing, UNI was trading at $10.69, up 8.5% in the past day. During the same time period, the crypto asset experienced a 31% decline in trading volume; This suggests that current holders may be holding on to UNI tokens in anticipation of further price increases.

UNI 24-hour price chart | Source: CoinMarketCap

Meanwhile, Uniswap’s market cap has risen to $6.4 billion, making the token the 18th largest crypto asset holding according to CoinMarketCap data.

The latest increase in price came when the decentralized exchange shared a new mysterious The message was paired with an image of a man sitting intently forward in his chair, a meme used by gamers when things get serious.

The attached post below, dated June 1, suggested that Uniswap v2 is preparing to add support for a new Layer-2 blockchain.

While the specific L2 protocol has not been announced, speculation among the crypto community about

Meanwhile, many members of the community have also expressed their displeasure regarding the potential distribution of ZKsync.

Hey, please don’t support this scam project.
You were one of the best projects that distributed Fairdrop and satisfied the users.
You know what we say, what we experience. They defrauded all users for 4 years and made a mess today.#zkscam #zksyncscam

— behnamsasani (@BehnamSasani) June 14, 2024

Another potential reason for the recent price increase in UNI could be the impressive growth in L2 volume processed through the Uniswap Protocol, as highlighted in a June 13 post from Uniswap Labs.

Showing data from the analysis platform Dune, the Uniswap team noted that it took 22 months to reach 100 billion dollars, 10 months to reach 200 billion dollars and only 3 months to exceed 300 billion dollars. The exponential growth epitomizes the increasing utility and adoption of Uniswap services in the defi space.

Additionally, an

Uniswap v2 pools are on the rise in Layer 2 solutions such as Optimism, Arbitrum, and Polygon.

This growth; driven by demand for scalability, lower fees and a better user experience.

During #Ethereum Still leaders in decentralized finance (DeFi), these L2 networks provide: pic.twitter.com/4fHmy5y5NC

— Kyledoops (@kyledoops) June 13, 2024

These platforms are preferred due to their promises of scalability, reduced transaction fees, and improved user experience, further contributing to the demand for Uniswap’s offerings.

While Ethereum continues to lead the way in terms of definition, the integration of L2 networks with Uniswap clearly promotes faster and more economical transactions and positions these networks as strong competitors in the emerging crypto space.