Yesterday, the industry revealed a shocking event—Uniswap issued coins, and it was very generous to send 400 UNIs to all users who traded on it before September 1. The entire community was completely boiling, and Ethereum became congested again.
The surprise that Uniswap has brought to everyone is commendable, but its impact on the development of the entire DeFi and the overall market is more worthy of our in-depth analysis. In general, it will bring the following effects to the entire market outlook:
1. Further popularize decentralized exchanges
Uniswap will undoubtedly further enhance the status of decentralized exchanges in the hearts of all investors, popularize the use of decentralized exchanges, and encourage more users to switch from centralized exchanges to decentralized transactions. So.
2. Give Ethereum a strong upward momentum
The initial liquidity mining pools opened by Uniswap are all related to Ethereum: ETH/USDT, ETH/USDC, ETH/DAI, ETH/WBTC.
It can be expected that with the start of mining, a large amount of ETH will be locked, and this lock will last at least until November. If we think of the ongoing Ethereum 2.0 beacon chain, we will find that November is likely to be the launch date of the Ethereum 2.0 beacon chain, and a large amount of ETH will be used by the beacon chain to pledge mining.
Therefore, from now on, the ETH circulating in the market will be greatly reduced, and Ethereum will accumulate a strong upward momentum.
3. It will attract a large amount of Bitcoin liquidity to Ethereum, and give Bitcoin a strong upward momentum.
In addition to Ethereum, the 4 initial liquidity pools selected by Uniswap include Bitcoin: ETH/WBTC. I think this is carefully considered by the team.
WBTC is a token issued in Ethereum under the ERC-20 standard after collateralizing BTC. It is equivalent to Bitcoin and can be regarded as Bitcoin “cross-chain” circulating in Ethereum.
The establishment of this pool will attract a large number of Bitcoin holders to pledge to participate in mining. On the one hand, part of the market value of Bitcoin was brought to Ethereum, and on the other hand, this part of Bitcoin was locked. This will bring a strong upward momentum to the development of Bitcoin prices .
4. Uniswap will further conquer the city and continue to marginalize the centralized exchange
The four pools opened by Uniswap include Bitcoin, Ethereum and the three largest stablecoins with the highest market share. With the opening of mining, a large number of Bitcoin, Ethereum and stablecoins will be attracted to the pool, which will further deepen the transaction depth in Uniswap, thereby providing users with a better trading experience and attracting more users to enter Uniswap transactions.
In addition, because Bitcoin and Ethereum transactions occupy a monopoly position in the entire digital currency transaction, this move is equivalent to occupying a monopoly share in the entire digital currency transaction; at the same time, because stablecoins are the majority of transactions Entry and exit, so this move is equivalent to occupying the entire entry and exit channel of digital currency transactions.
So this has directly threatened the foundation of centralized exchanges. If it continues to develop in this way, in addition to the obvious channel advantage of fiat-to-digital currency transactions in the future, centralized exchanges will not have any remaining transactions.
Moreover, attracted by Uniswap mining, the movement of extracting Bitcoin and Ethereum from centralized exchanges will further develop. I once again remind everyone to put it forward immediately after buying the currency on the centralized exchange, and do not stay for long.
5. The overall situation of DeFi is tentatively determined, and the decentralized exchange has officially become the foundation of the Ethereum ecosystem
Uniswap’s issuance made the industry’s expectations and suspense finally come true, and it also resulted in a happy situation for everyone. This approach may be difficult for other exchanges to catch up in terms of influence and inclusiveness. It not only officially established the overall status of decentralized exchanges, but also laid the foundation for their role in the Ethereum ecosystem. It should be This round of DeFi development is a milestone achievement so far.
In addition to the far-reaching impact and significance of Uniswap’s issuance, more investors are concerned about the future trend of Uniswap tokens.
In this regard, we can make a general judgment from the liquidity market value and total market value:
From the perspective of liquidity market value, the amount of tokens released in this round is 150 million. As of the time of writing, the price of UNI is US$3, and its total circulating market value is US$450 million, ranking it to around 38-39 on CMC. If calculated on the basis of its initial total issuance of 1 billion, its total market value is 3 billion U.S. dollars, ranking it about 10th on CMC.
In terms of Uniswap’s influence and trading volume, this market value is not high. Therefore, I think the current currency price of $3 is not high, and there is still room for continued upward growth in the long run.
