According to statistics from crypto analytics platform CoinGecko, the price of UNI, the native governance token of decentralized exchange Uniswap, has climbed by 9% in the last 24 hours to $20.6.
The increase of Uniswap this week is due to CoinMarketCap’s incorporation of the decentralized finance technology, among other factors. On June 29, CoinMarketCap announced a Uniswap-based swap tool, allowing users to easily swap Ethereum-based tokens on the platform.
According to DeFi Pulse data, Uniswap’s protocol is worth $5.47 billion, making it the sixth most valuable protocol. When Uniswap issued its governance token in September 2020, it was the second-largest protocol, and the platform also airdropped 400 UNI (then worth $1,500, now worth $8,320) to each wallet that has interacted with its protocol.
Despite the increase, the current price is still less than half of what it was two months ago. The coin reached an all-time high of $44.69 on May 3, shortly after Uniswap updated its liquidity and fee structure with Uniswap V3.
A group of UNI owners proposed a $25 million “political protection” fund for DeFi protocols earlier this month. The Harvard Law Blockchain & FinTech Initiative came up with the idea for the project. It aimed to use 1 million UNI tokens from the Uniswap community treasury to form a 501(c)(4) organisation to “protect the protocol and DeFi from legal and regulatory concerns.” The plan is still up for discussion.
However, no fund can protect the token from market buy and sell orders.