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Will Uniswap’s new swap update propel UNI?

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The new update to TWAMM would allow splitting of large orders. Consequently, this would decrease the impact of sudden price swings on trades.

Will Uniswap's new swap update propel UNI?

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  • Uniswap updated the terms of the TWAMM for traders on the liquidity pool.
  • Market players seem bullish on the long-term relevance of the Uniswap project.

If you are an active liquidity provider or trader on the Uniswap [UNI] protocol, then you’d know that the most basic type of market making is the Time-Weighted Average Market Maker (TWAMM). 


Read Uniswap’s [UNI] Price Prediction 2023-2024


Uniswap defines TWAMM as the on-chain equivalent for keeping exchanges in line with market prices.

However, there has been a new update to TWAMM, and the Automated Market Maker (AMM) did well to disclose the details in a blog post on 7 October. According to Uniswap, the new update to TWAMM would decrease the impact of sudden price swings on large trades.

No more surprise spread

Uniswap further explained that market participants would be able to access price stability by splitting a large single swap into tiny bits. Although the TWAMM has been functioning since 2021, its role was only to help traders submit long-term orders over a fixed number of blocks.

With the latest update, the process of submitting orders will change. Notwithstanding, Uniswap has maintained its lead as the AMM with the highest DEX volume. According to Dune Analytics, Uniswap’s trading volume in the last seven days was $2.83 billion.

Due to this, the protocol was able to make $3.53 million in total liquidity pool fees. This ensured that it constituted about 58% of the total DEX marketshare, with PancakeSwap [CAKE] trailing behind it.

Uniswap daily DEX volume

Source: Dune Analytics

With the new update, Uniswap may be able to recover from its recent volume decline. Also, TWAMM is likely to help attract more liquidity providers and traders. So, there’s a chance that the protocol’s trading volume could once again surpass some Centralized Exchanges (CEXes) like it did in May.

Social dominance rises as players stay bullish

Another part of Uniswap that could be affected by this development is social dominance. At press time, Uniswap’s social dominance had increased to 1.077%. Social dominance measures the rate of discussions about a project.

Therefore, the hike in the metric suggests that Uniswap was one project enjoying a good level of hype on crypto media. Furthermore, TWAMM’s development could also bring about another increase in social dominance.

This is because market players may pay more attention and possibly increase transacting on the Uniswap protocol soon.


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


Meanwhile, the broader market seems to be bullish on the Uniswap project. This was because of the weighted sentiment metric, which shot up to 0.345. The weighted sentiment considers the positive and negative commentary referring to a project using social platforms’ conversations.

Uniswap social dominance and weighted sentiment

Source: Santiment

With the metric’s increase into the positive region, Uniswap, alongside its native token UNI, could remain relevant for a long time in the market. 

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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