Four billion unicorns! The reasons and problems of DEX leading UNI rising
UNI the unicorn continues to charge, once rising to $15, the current market value has exceeded $4 billion, if not covered by today’s dog coin head, it really has a “universe first” flavor.
Uniswap from the point of view of investment choice, the biggest characteristic is that it is the leading DEX and has a certain moat.
And what is the tap in the DEX:
Above is a comparison of the number of daily active trading addresses on a relatively mainstream etheric in December last year, Uniswap the number of single-day trading addresses exceeded 30,000.
The second place data is very bad, visible head advantage is still relatively big, like LRC in DeFi this wave also rose a lot, but compare data to see, still relatively empty.
On the other hand Uniswap the liquidity of market makers was cut off by Sushi” in September last year, but it was also snatched back by UNI airdrop and liquidity mining incentives, and both platform liquidity and daily turnover remain high.
This can also prove that it has some moat characteristics, that is, it is not so easy to be surpassed by competitors and new network celebrities, and with the enhancement of network effect, it may expand its advantages in the future.
In the long run, we should pay more attention to those targets with moat and network effect in the industry, because they will be more suitable for long-term survival, especially in the free market such as the currency circle, there is no rule threshold, so the competition is particularly fierce.
After reading some bloggers’ comments on the rise in UNI, most of the logic is also based on fundamental data, especially when the platform’s liquidity growth returned to record highs in 2021(previously due to a drop in mining).
However, the data above, but not the main reason for UNI growth.
First of all, liquidity growth is based on market value, and a large part of this growth may come from the increase in bit etheric market value.
The other is that if you look at the specific data of the platform, more than half of the 3 billion liquidity pool comes from several stable coins in Bitethe, and the main trading volume is also concentrated between several stable currency trading pairs in Bitethe.
Why is this a state that seems to have something to do with with the lack of stable currency trading in various currencies or even the pool of funds, the platform is basically etheric trading right, which helps the ETH, but it’s a little troublesome for users. Always need to change to ETH, or exit to ensure stable profits, will immediately convert the ETH back to USDC these.
On the good side, the leading advantage and network effect Uniswap in the field of DEX are worthy of our attention; Uniswap are more influenced by speculative driving factors, speculative demand is long-lived and need not be viewed completely negatively. In the hot market, especially when the DeFi market is hot, it will help to promote the growth of UNI market value; The outlook depends on whether the number of users in the future can be further improved, and now it feels a little bit more clique, which may also depend on future performance improvements, such as a two-tier network, a Uniswap V3 version, and a reduction in transaction costs. In order to drive more users to join.
On the other hand, one is the long-term bargaining chip problem mentioned above. If hundreds of millions of dollars are really to be dispersed, a simpler system for an economic model. Personal view, it may be more suitable for phased holding, long-held Ethernet Square may be a better choice, because its mechanism and speculation actually promote the growth of ETH.