- UNI is the native token of the Uniswap protocol, a decentralized exchange where crypto users still control their assets, instead of a centralized exchange like Binance or Coinbase.
- Uniswap has been having a bad year, currently trading for $10.93 ($14.44 AUD) which is down over 75% from its all-time-high of $44.92 ($58.23 AUD) on May 3rd last year.
- Uniswap’s downward price action comes as the exchange faces fierce competition from alternatives such as Maker and Aave, which has led some experts to question whether UNI can ever properly rebound from here.
- Experts are divided on the future of UNI, with some expecting a $100+ valuation in the coming year, while others say that Uniswap might be done for good.
2022 has not been a fantastic year for crypto investors so far and especially not for the holders of Uniswap’s governance token UNI. The overall crypto market has recovered much of its gains over the past month but is still down 1% from January 1 and UNI coin has severely underperformed the general market, currently down 37% year-to-date. As of today, UNI is ranked as the 24th largest cryptocurrency by market cap, and is the 5th largest Decentralized Finance (DeFi) platform.
In This Prediction
What is UniSwap (UNI)?
Uniswap is a decentralized crypto exchange (DEX) that runs on the Ethereum blockchain, which essentially means that instead of giving an organization like Coinbase or Binance custody of your crypto assets you have full ownership of your cryptocurrency at all times.The decentralized nature of the Uniswap system means that investors can trade digital assets with complete anonymity.
Uniswap grew massively in popularity in 2020 as well as during the first quarter of 2021 for its ability to make automated trades of DeFi tokens. Uniswap faces fierce competition from other DeFi protocols such as Aave and Compound.
Why Did Uniswap Fall So Hard?
The price of Uniswap (UNI) fell particularly hard in the second half of 2021 as news broke in September that the SEC were launching an investigation into its developer Uniswap labs. This caused the price of Uniswap to flounder at a time when other cryptocurrencies were surging, and created increased uncertainty for investors in the DeFi sector of cryptocurrency more broadly.
UNI Short-Term Price Prediction (1 month)
Buying UNI right now may not be the best idea according to detailed analysis from the analysts at FXStreet, who see Uniswap’s current price action continuing on a sideways or slightly downward trend until the overall crypto market sentiment begins to change.
According to the FXStreet analyst Jonathan Morgan, because Uniswap has failed to hold resistance at a level of $10.30 ($13.92 AUD) over the past few weeks it is likely that the price of UNI will dip lower in the coming weeks as well.
UNI 1-Year Price Prediction (2022)
Short-term technical analysis from both TradingView and CoinCodex remains pretty bearish, with most indicators leaning towards a negative price sentiment for the coming months. Not adding much in the way of optimism, automated analysis from WalletInvestor called UNI a “Bad” long-term investment and predicted that UNI will end this year at a price of US$1.51 ($2.03 AUD), another 83% decrease from here…
On the other hand, automated technical analysis from DigitalCoinPrice is far more positive and predicts that UNI will be worth US$12.30 ($16.63 AUD) by the end of this year. On the far more bullish side, analysts from CoinQuora suggest that an end of year price target of US$44.81 ($60.57 AUD) is still very much on the cards, and are betting that the DeFi sector will make a strong return by the end of this year.
UNI 3-year Price Prediction (2024)
Continuing the extremely bullish thesis, the analysts from CoinQuora predict that the price of UNI will reach somewhere around $100 ($135 AUD) by the end of 2024.
On the more bearish side, automated technical analysis from WalletInvestor predicts that UNI will fall to just $0.28 ($0.38 AUD) by the end of 2024.
UNI 5-year Price Prediction (2026)
Analysts at CoinQuora predict that as crypto continues on its adoption trend, the Uniswap ecosystem will grow alongside it leading the UNI token to be worth $200 (270) by the end of 2026, a near 1000% increase from today’s price.
Analysis from DigitalCoinPrice is less bullish, predicting that UNI will end 2026 of $17.50.
WalletInvestor maintains its bearish outlook, claiming that UNI will be worth a mere $0.24 ($0.32) in roughly 5 years time.
When looking at all of the above forecasts, bear in mind that analysts’ and algorithm-based predictions can be wrong. These UNI projections are based on fundamental and technical studies of a cryptocurrency’s past performance.
UNI Price Prediction Conclusion
- The long-term price of Uniswap (UNI) depends on the outcome of the current SEC investigation and how the entire DeFi sector of crypto behaves in the future.
- Uniswap is definitely a more risky cryptocurrency to invest in, when compared to large-cap crypto assets like Bitcoin or Ethereum, as the world of decentralized finance is particularly susceptible to potential regulatory clampdowns in the future.
- However, if you have a good knowledge and understanding of decentralized finance and believe in the continued utility of its protocol, then Uniswap and its native token UNI is a solid investment choice for you.