The Uniswap price is expected to recover as a UNI whale acquired $16M in coin, and the launch of v4 has sparked optimism.
The Uniswap price has remained red, circling the $9 mark. However, recent developments suggest that a robust recovery is imminent. In the past few days, whales or significant investors have acquired nearly $16 million in UNI, which indicates a high level of confidence among the investors. Moreover, the decentralized exchange (DEX) is poised for robust performance in the future, as the recent introduction of Version 4 (v4) has also contributed to optimism.
Amid a significant whale purchase, the Uniswap price shows signs of recovery
A substantial accumulation of whales has resulted in an increase in investor sentiment toward Uniswap. Over the past four days, a UNI whale withdrew approximately 1.7 million tokens, valued at $15.54 million, from Binance, according to on-chain data from Lookonchain’s platform.
Positive price movements are frequently the result of such substantial acquisitions, which typically indicate confidence among high-net-worth investors. This most recent accumulation suggests that the price of UNI may recover, as whale movements have historically been a significant factor in determining market trends. However, the cryptocurrency is preparing for a robust recovery.
Additionally, the updates from these major exchanges also stimulate the market. For example, the price of BERA has experienced a significant increase due to Binance’s recent announcement of its support for Berachain.
The Uniswap v4 launch has sparked optimism
In addition to the optimistic outlook, Uniswap recently introduced its eagerly anticipated version 4 (v4) on January 31. The latest upgrade establishes a new standard for decentralized exchanges by introducing trading features that are both cost-effective and customizable.
Major networks, such as Ethereum, Polygon, Arbitrum, Base, BNB Chain, Avalanche, and others, now offer the v4 version. In a post on X, the platform disclosed that liquidity providers can now access the web application, and exchanging capabilities will be implemented shortly. In the interim, the most recent iteration is anticipated to generate even greater engagement, as previous versions have successfully processed over $2.75 trillion in trading volume without any security breaches.
The Priority of Gas Efficiency
Uniswap Labs CEO Hayden Adams emphasized the platform’s efficiency and compared petroleum fees between v3 and v4. He disclosed that creating a v3 pool on the Ethereum Mainnet necessitated 5,165,447 gas ($57.42). In contrast, the same action on the v4 network consumed only 431,860 gas ($4.63).
The v4 is a cost-effective option for liquidity providers and traders due to the substantial decrease in gas costs. Additionally, the DEX’s market position could be further fortified by the potential attraction of new users due to its reduced transaction fees.
What is the future of the Uniswap price?
The UNI price was down nearly 3% today and traded at $9.15 despite the Uniswap whale accumulation and other positive developments. Its one-day trading volume increased by 5% to $223.17 million. Nevertheless, the UNI Relative Strength Index was 33, indicating that the token is oversold.
It is important to note that this oversold indicator indicates a robust recovery, as investors frequently capitalize on the opportunity to purchase the decline. However, the UNI price is on the brink of a potential uptrend due to the v4 implementation, UNI whale accumulation, and enhanced gas efficiency. The token has the potential to surpass its present resistance levels and regain momentum if investor sentiment remains robust.
