What is Uniswap (UNI)?
Uniswap (UNI) is a decentralized cryptocurrency exchages that runs on the Ethereum blockchain and allows for token swaps. This project was created by Hayden Adams, wich was inspired to create this project by a older post from Vitalik Buterin (Ethereum founder). Uniswap platform was created in 2018 on the Ethereum blockchain, this means that is compatible with all ERC-20 tokens. Essentially any ERC-20 tokens can be launched free from fees. UNI is designed for the community to trade tokens without fees or middlemen, unlike most centralized exchanges that are designed to take fees.
Uniswap (UNI) Market cap and price
Uniswap has seen a huge growth in popularity and price, going from 2 dollars in november to 33 dollars in march. UNI has a market cap of 14.5 billions dollars and currrently is the 8th biggest cryptocurrency, only Bitcoin, Ethereum, Binance Coin, Tether, Cardano, Polkadot, and XRP are above Uniswap.
As we can see in the chart, Uniswap had a huge growth in price and popularity in the last months. This proves, that the project was easily accepted by the community and has a true potential to be the number one exchange in the crypto universe. Uniswap is a great project and I believe that will have a great future, but currently I would wait for a pull back in the price before buying more Uniswap tokens.
If you want to follow the currente Market cap, price and chart of Uniswap follow this link: https://coinmarketcap.com/currencies/uniswap/
What makes Uniswap different from other exchages?
As said before, Uniswap is a decentralized cypto exchanges, but what makes it different from other exchanges? What makes Uniswap special and different is a pricing model that's called Constant Product Market Maker.
This are smart contracts that hold liquidity reserves, that traders can trade from. Anyone can be part of this liquidity reserve, all that is needed is to deposit at least two tokens in the pool. After that is done, traders pay a fee everytime they trade from that liquidity pool. That fee is distributed to all the liquidity pool makers according to their share in the pool. I will make an example just to make it easier to understand. Lets imagine that you deposit 10 tokens on a liquidity pool, made of 90 tokens, now there are 100 tokens on that pool. You have 10% percent of the tokens, soo when a trader trades with that liquidity pool you will recive 10% of the fee that he paid.
Should you buy Uniswap right now?
Uniswap (UNI) is a great project and I am almost sure that will be one of the top crytpo exchanges in the future. This project already had an explosion in price in the last few months, so before you buy some Uniswap tokens, you should wait for a retracement in price. After that happens, Uniswap is a great project to buy in with a huge potential in the future.
If you want to know more about crypto: https://digitalmoneypt.com/crypto/