Why Uniswap Price Is Up 17% Today?

The Uniswap price surged 17% on Thursday on the back of Uniswap Labs’ recent announcement of its new Ethereum layer-2 network. This development is set to increase the decentralized exchange’s native token UNI’s utility. Uniswap mentioned that the network will go live on the testnet today, with the mainnet expected to come sometime later this year.

UNI/USDT 1-hour chart

Why The Uniswap Price Surged 17%

The DeFi token surged by 17% to reach a monthly high of $8.16 today following Uniswap’s announcement. The top DeFi protocol announced the launch of its Unichain, a new Ethereum L2 explicitly designed to cater to the needs of DeFi enthusiasts. According to the announcement, the network will feature fast order blocks, enable cross-chain interoperability, and operate a decentralized validator network.

Uniswap also mentioned that they have designed Unichain to be the home for liquidity across all chains. Meanwhile, the chain will help accelerate Ethereum’s scaling while prioritizing the needs of DeFi users and protocols.

Hayden Adams, the founder of Uniswap, noted that the new Layer 2 chain will have a few new features like “a fast, provable block builder” that help achieve faster transactions that reduce “MEV lags.” Adams also added,

“a decentralized network of validators that add an additional layer of finality and economic security on top of the sequencer”

This announcement provides bullish momentum for the UNI token, considering the role it plays in the Uniswap ecosystem. This explains why the Uniswap price is up, as this has boosted investors’ confidence in the token’s potential. UNI will also enjoy more utility following Unichain’s launch since it will be the utility token on the Ethereum L2.

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