Interest in DeFi is back. With Ethereum’s price support and record-breaking volumes, Uniswap breaks past $17, marking a +45% increase for the week.
Record Volumes for DeFi, UNI Benefits
November was undoubtedly a record-breaking month, but the growth didn’t stop as December began. The spotlight is now on the decentralized finance (DeFi) sector, with Uniswap leading the charge as the market's top decentralized exchange (DEX). Over the past week, UNI, Uniswap’s token, surged by 45%, decisively breaking the $17 mark—a price level last reached in March 2024.
This price surge is supported by increasing trading volumes in the DEX sector. In November, DEXs reached a record-breaking $300 billion in trading volume, an all-time high. Uniswap itself hit an ATH, with $94 billion traded in just one month.
Looking Ahead to 2025
Eyes are now on the DeFi sector and Uniswap in particular for 2025. Here are three potential drivers for UNI's price in the coming year:
- The Launch of Unichain
Uniswap is preparing to enter Ethereum’s Layer 2 ecosystem with the launch of Unichain. This rapidly growing sector has been attracting more Total Value Locked (TVL), now approaching $10 billion.
- Uniswap Version 4
In 2025, Uniswap plans to roll out its Version 4, a technical upgrade expected to revolutionize DEX liquidity management. The new version will introduce features like limit orders, dynamic fees, and the ability to use "out-of-range" liquidity as collateral on lending platforms. Although initially slated for release this quarter, there have been no recent updates on the launch.
- Fee Switch
The final, and possibly most significant, driver for UNI’s price is the “Fee Switch.” Despite generating millions of dollars in fees, Uniswap currently distributes all revenues to liquidity providers.
The proposal to retain a percentage of these fees to distribute to UNI token holders is not new, but governance has yet to approve it. However, with the new U.S. administration signaling support for favorable legislation, UNI token holders may reconsider this proposal. Such a change could be a major catalyst for UNI, potentially paving the way for a return to its all-time high of $48.
What do you think? By Gue 22 🚀⚡🌐
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