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Why does UNI coin plummet (uni coin)?

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Why does UNI coin plummet? Unicoin (UNI) is the native token of the decentralize

Why does UNI coin plummet (uni coin)?

Why does UNI coin plummet? Unicoin (UNI) is the native token of the decentralized exchange UniSwap, which was launched on October 15, 2020. It has already traded over 10 million transactions on the Ethereum blockchain. However, according to CoinMarketCap data, as of 12:00 Beijing time, the price of UNI is approximately $0.004, with a 24-hour fluctuation of 11.8%, and the market value has soared from $900 million to over $1.9 billion.

Uniswap is an open-source protocol that allows developers to seamlessly connect various Ethereum-based applications for fast and efficient off-chain transactions. Additionally, the protocol uses a unique feature that allows users to create decentralized and immutable ERC20 tokens. This project can provide better liquidity by collaborating with other protocols.

Due to the “hybrid consensus” adopted by UniSwap, it does not rely on a unified smart contract platform like most DeFi protocols that automatically execute transactions. Therefore, if someone wants to participate in the construction of the UniSwap ecosystem, they can directly run their decentralized applications or DApps on these smart contract platforms. UniSwap Version 2 has been developed, tested, and is underway.

Hayden Adams, the founder of Uniswap, said, “I am very excited to see community members contribute to this proposal.” He believes, “We are delighted to have the support of the community. Many development teams are now working on building this solution, and that doesn’t mean they won’t succeed. This is a major step for those who want to learn more about deploying their own applications on UniSwap. It means that all existing blockchain networks must be integrated into the new Layer1 infrastructure.”

Although Uniswap has had similar situations before, it still has an obvious problem. Uniswap’s governance structure is completely different. It has no code or design changes. And the governance mechanism of Uniswap is also the same. To incentivize people to participate in community activities, Uniswap introduced a new feature called “voting.” Voting rights are allocated to community members and core contributors, including voting and proposals, as well as additional resources rewarded to the community.

However, this also has caused dissatisfaction among many people who believe that UNI cannot be accepted as a mainstream cryptocurrency because they are not official, but managed by the community. “I believe the value of UNI lies in its foundation on the community, rather than circulating in the market.”

Uni Coin

Uni Coin, the price of uni has already risen by 3 points.

Uni is the native token of the decentralized cryptocurrency market platform Uniswap, which provides liquidity to traders with minimal fees and maximum profits on Uniswap. It also allocates funds to the community through its governance mechanism.

According to CoinMarketCap data, the current total locked volume on Uniswap is $9.36 billion, ranking it 5th in terms of market value. The 24-hour trading volume is $2.17 billion, with a daily turnover rate of 24.4%. The circulating supply of Uni is currently around 868 million RMB (calculated at the current price), accounting for approximately 6.55% of the total supply.

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