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Uniswap promises protocol growth, but what about UNI?

2min Read

Uniswap’s cross-chain bridge assessment report approves specific protocols, while overall activity declines. Upcoming v4 launch aims to rejuvenate interest in the protocol.

Uniswap promises protocol growth, but what about UNI?

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  • Uniswap Foundation released its cross-chain bridge assessment report.
  • The protocol’s activity declined while the upcoming v4 launch promised to revitalize interest.

Leading DEX Uniswap [UNI] recently released its cross-chain bridge assessment report by the Uniswap Foundation, which may have notable repercussions on the protocol.

Is your portfolio green? Check out the Uniswap Profit Calculator

Crossing the bridge to the top?

Cross-chain messaging protocols, also known as bridges, play a crucial role in facilitating communication between different blockchain networks. In Uniswap’s case, these bridges enabled the transfer of governance decisions from Ethereum [ETH] to other chains where Uniswap V3 contracts are deployed.

By leveraging cross-chain messaging protocols, the protocol’s decentralized autonomous organization (DAO) ensured that governance decisions made on Ethereum could be effectively implemented across various blockchain networks.

This is vital, considering that the aforementioned V3 contracts exist on multiple chains, necessitating a mechanism to propagate governance decisions across these networks.

Source: Uniswap

The committee responsible for overseeing Uniswap’s governance recently approved specific use cases for Wormhole and Axelar. The committee acknowledged Wormhole’s reputable validator set and satisfactory security thresholds. Similarly, Axelar’s well-considered design and adequate validator set and safety thresholds garnered approval.

However, other protocols such as LayerZero, Celer, DeBridge, and Multichain did not meet the required standards at present.

Uniswap: Still a long way to go

Despite the ongoing developments, the network’s overall activity fell by 20.4% over the past month. According to data from Token Terminal, Uniswap’s declining activity led to a 59.8% decrease in network fees.

Source: token terminal

Nevertheless, Uniswap’s forthcoming launch of version 4 (v4) holds the potential to reignite interest in the platform. These plugins enable users to create custom liquidity pools and exercise control over the interaction of pools, swaps, and fees.

Realistic or not, here’s UNI’s market cap in BTC’s terms

The market’s response to Uniswap’s developments will unfold with time. At press time, UNI was trading at $4.45, having experienced a minor decline of 0.45% in the last 24 hours, as per CoinMarketCap.

As the protocol continues to evolve, these assessments and upcoming updates may shape the future trajectory of the DEX and its position within the decentralized finance (DeFi) ecosystem.


Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
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