Since its launch, Uniswap has become one of the most interesting cryptocurrency plays on the marketplace. Though its per-token price isn’t off the charts, it has a market capitalisation that places it in the top 30 of the entire market. As a decentralised exchange, Uniswap is at the forefront of a unique aspect of the cryptocurrency marketplace.
What does that mean when making a Uniswap price prediction? Below, we will take a closer look at where Uniswap stands, what the future holds, and what the token could be trading at by the time 2030 rolls around.
Uniswap 2030 Price Prediction
Currently trading at just under $9 per token, Uniswap is among the top 30 in terms of market cap among crypto assets. Though it is a far cry from the more than $2 trillion market cap that Bitcoin possesses, Uniswap remains a more than viable option for investors.
What most are wondering is, “Where will Uniswap be trading in 2030?” Experts are generally optimistic about the cryptocurrency marketplace, expecting a bullish trend to come by the end of 2025. Where it ends is anyone’s guess.
What does that mean for Uniswap? By the beginning of 2030, experts see it trading between $96 and $116 per token. With steady growth, it could challenge the $150-per-token mark by the end of the year.
Though some of the shine has come off for Uniswap in subsequent years, it still remains one of the strongest cryptocurrency plays out there. Whether it is capable of achieving massive growth and breaking the $100 threshold remains to be seen, but experts have a positive outlook.
How Does Uniswap Work?
Knowing more about Uniswap is a good place to start when wondering whether it is a good investment. For starters, how does it work? The Uniswap platform has smart contracts that are blockchain-based in order to facilitate fully decentralised trading of several different digital assets.
Pairs of assets get swapped in what are known as liquidity pools, using smart contracts to rebalance automatically in the wake of each trade. Uniswap’s blockchain is basically an electronic ledger, updating continually in order to highlight trading activity happening among the litany of Uniswap users.
Uniswap offers several means for making use of its decentralised exchange:
Uniswap governance participation. Holders of the UNI token have the ability to participate in the overall governance of the Uniswap platform. This means having the ability to vote depending on a user’s UNI balance. Voting includes anything that pertains to the growth and development of the Uniswap platform.
Earning rewards and providing liquidity. A major perk for Uniswap users is the ability to provide liquidity by staking—not selling or trading—their digital assets. Staking digital currencies on Uniswap sees users rewarded with UNI.
Swapping assets through existing markets. Platform users also have the ability to use the platform as a means of swapping digital assets. This is done through the decentralised markets, which have been previously created.
Creating new markets. Users of Uniswap are able to use smart contracts in order to create brand-new markets by simply exchanging new pairs of assets to do so. These smart contracts execute automatically for optimal convenience.
The Pros and Cons of Investing in Uniswap
When investing in a cryptocurrency, it isn’t all good or all bad. The same is true when it comes to Uniswap. Let’s take a closer look at the good and bad of investing in Uniswap.
Pros
First and foremost, users are able to exchange digital assets through a totally decentralised exchange. Many users of cryptocurrency platforms are there for the decentralised aspect, which is attained by using the Uniswap platform.
Secondly, there are smart contracts involved. These automatically execute, providing a safer, more secure means of trading the aforementioned assets. More importantly, users are able to earn UNI by staking their cryptocurrency, giving them greater equity in the platform.
Finally, users have the ability to participate in the governance of the Uniswap platform. By staking UNI, users are able to vote on things as they pertain to the development, growth, and safety of the platform.
Cons
On the flip side, Uniswap has limitations. For instance, it only supports the exchange of cryptocurrencies that are Ethereum-compatible. Though the Ethereum network is huge and growing, that does put constraints on user options.
Users must also have ETH in their wallet in order to pay for any transaction processing fees associated with Uniswap. Even if you have UNI, you must have ETH in order to pay for those transactions. And since this is a decentralised exchange, you must have a self-hosted, compatible wallet as well.
More About the UNI Token
As the native token of Uniswap, UNI acts as a governance token. This gives holders the ability to vote on changes and developments on the platform, which includes how many tokens can be distributed, not to mention fee structures.
Created in September 2020, the token was created to stop users from moving over to SushiSwap, a rival DEX. Uniswap created 1 billion UNI tokens and gave 150 million of them to current users of the platform as a reason to stay.
Cautiously Optimistic Future
What the future holds for Uniswap remains to be seen. A lot can happen in five years, but experts feel confident that UNI will be trading at a comfortable price when 2030 arrives. Given its place among the biggest decentralised exchanges, it seems to have a solid footing in the marketplace.
Whether UNI can climb past the $100-per-token threshold remains to be seen. For now, it is a sound investment, one that has become popular among decentralised protocols. Unless something drastically changes for the negative, it should remain a safe, viable option for investors.
