One of the most essential decentralized exchanges on the market, Uniswap (UNI 0.68%) is once again seeing strong momentum in today's session. As of 12:15 p.m. ET, this top-25 cryptocurrency by market capitalization has surged 5.2% over the past 24 hours. That's good for second place among top tokens in this mega-cap grouping, and is a move deserving of a look.
CRYPTO: UNI
Key Data Points
Here are a couple of key factors that appear to be positively impacting Uniswap's valuation today.
Riding momentum from key network updates
Source: Getty Images.
Uniswap's performance over the past week has been notable. At the time of writing, Uniswap's one-week return of around 8% ranks second among all top-25 crypto projects, suggesting that investors are buying into the bullish investment thesis supporting this decentralized exchange.
Uniswap operates one of the largest decentralized exchanges in the market, generating protocol revenue via transaction fees incurred by traders, speculators, and long-term investors as they buy and sell cryptocurrencies. Those looking to do so on-chain have mainly opted for Uniswap, due to this protocol's trading pairs, vast liquidity, and the security and stability it has demonstrated over time.
A couple of key network updates I touched on in a recent piece last week appear to be stoking continued interest from investors today. Uniswap developers have announced a shift toward "continuous clearing auctions," a move that is expected to streamline on-chain token markets and enable Uniswap to capture an even larger market share over time.
Additionally, a recent "UNIficiation" proposal has many investors bullish on Uniswap's forward-looking tokenomics. The idea behind this proposal is to enable Uniswap to utilize protocol fees to repurchase its native UNI tokens. In doing so, this cryptocurrency's total circulating supply could decrease over time, giving existing token holders a greater share in Uniswap's future profits.
