- Uniswap v4 has launched, unlocking new features and cost-reduction mechanisms to bolster use cases
- UNI whales also accumulated 3.07M tokens yesterday, which could spike a bullish reversal
Uniswap Labs has released a new protocol version dubbed Uniswap v4. This seeks to offer lower costs and new features to boost its presence in the decentralized exchange (DEX) market.
According to DeFiLlama, Uniswap v4 is already gaining traction, with the TVL hitting $5.7M barely one day after launch. However, this development is yet to stir gains for UNI. At press time, the altcoin was trading at $11.68 following a 2% dip in the last 24 hours.
Uniswap’s “biggest” version goes live
According to Uniswap Labs’ CEO Hayden Adams, v4 is the “biggest, baddest version of the Uniswap protocol yet.” The executive noted that this protocol has been under development for years and will introduce innovative features. One of these features is a developer platform known as Hooks. It will allow for faster development cycles and improve liquidity on the protocol.
Uniswap v4 will also reduce the cost of deploying pools by 99.99%. It will also support native Ethereum (ETH), which will be cost-efficient for those using ETH pairs. According to Adams,
:V4 will serve as the liquidity infrastructure for Ethereum for years to come – I can’t wait to see what our incredible developer community builds on top.”
The version is available on Layer one networks such as Ethereum, Avalanche, and BNB Chain. It has also been deployed to Layer twos including Base, Optimism, Arbitrum, and Polygon.
Can the new protocol version stir gains for UNI?
Uniswap has been facing bearish pressure due to rising selling activity. According to CryptoQuant, UNI exchange reserves surged to 71M tokens – Marking the highest level in over a month.
(Source: CryptoQuant)
The rising exchange reserves may be a sign of waning confidence as traders get ready to sell. Such a hike in sell-side pressure could continue to weigh on UNI’s price action.
And yet, the launch of Uniswap v4 seems to have attracted the attention of whales or large addresses. According to IntoTheBlock, for instance, large transactions climbed from 4.01M UNI to 15.64M UNI in just 24 hours.
Most of these volumes came from the buying activity, as seen in the rise in large holder netflows from -47,900 UNI to 3.03M UNI. This indicated that whales accumulated 3.07M UNI tokens yesterday – Valued at around $33M.
(Source: IntoTheBlock)
Whale accumulation could bode well for UNI if it is enough to offset the sell-side pressure. Moreover, if these whales are buying due to the features unlocked by Uniswap v4, it could trigger a long-term uptrend on the charts.
Key levels to watch
At the time of writing, Uniswap’s one-day chart revealed that bears were still in control due to the Relative Strength Index’s (RSI) closeness to the oversold levels. The Chaikin Money (CMF) with a negative value also highlighted high selling pressure across the board.
(Source: Tradingview)
Traders should watch out for a crossover of the Signal line above the RSI line as that will form a buy signal.
At the same time, UNI made a strong bounce from the support level of $10.80. A breach below this level could ignite a strong downtrend. On the other hand, if UNI breaches the resistance level at $15.25, it could ignite a strong uptrend.
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