Uniswap (UNI) price has continued its impressive bullish form today as it closes on the key target of $10.00.
Fundamental analysis: Liquidity surges to $3.18 billion
Uniswap’s liquidity soared to $3.18 billion without any recent liquidity stimulus programs. The decentralized crypto exchange has previously awarded UNI tokens to Liquidity Providers (LPs). More specifically, these providers who offered liquidity to different pools were rewarded with 0.3% fees generated from these pools and UNI tokens.
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The exchange ended its liquidity incentives back in November 2020, after which its liquidity plummeted from $3.36 billion to $1.52 billion. However, following that decline, Uniswap’s liquidity has been on a progressive rise and now stands at $3.18 billion.
MonetSupply and Coopahtroopa, both Uniswap community members, have recently put forward a fresh incentive program which intended to slash the monthly incentive allocation from 10 million UNI to 5 million UNI across four different pools.
However, the program got delayed for unknown reasons after gaining approvals in the first two stages. The proposal was never suggested as a formal governance proposal.
It remains to be seen whether the incentive will be reintroduced as a formal governance proposal. On the other hand, the exchange has seen a healthy surge in liquidity and is expecting the version 3 update.
Uniswap Grants Program became the first governance proposal in the exchange’s ecosystem to get a pass. This proposal aims to help Uniswap grow by offering grants to people and events, who have contributed to Uniswap’s expansion.
Technical analysis: Rapid increase in price
UNI/USD price is trading over 6% higher today after soaring nearly 45% last week. In the past four weeks, UNI price skyrocketed over 200% to print a high of $9.86 today.
The buyers are now likely to target a move to $10.50, which is a 127.2% Fibonacci extension line of the September – November correction. On the downside, any short-term correction is likely to find buyers near $8.70.
Summary
Decentralized crypto exchange Uniswap said its liquidity climbed to $3.18 billion, following a sharp drop at the end of last year.
