Uniswap Price Prediction: Surging Fees Put $9 in Focus

Uniswap (UNI) has jumped by more than 6% in the past 24 hours, and it is the best-performing token in the top 20, as on-chain data shows that protocol fees have exploded in September.

In the past 30 days alone, this token has doubled its value, primarily amid the success of its launch on the Robinhood Chain.

Trading volumes in the past 24 hours have surged by 80%, to nearly $640 million. At those levels, they account for almost 15% of the asset’s circulating market cap.

FedWatch Rate Decision Odds Now See Two Interest Rate Hikes This Year

UNI has managed to defy a challenging macroeconomic backdrop marked by expectations of multiple upcoming rate hikes.

According to data from FedWatch, the Federal Reserve will increase interest rates by 25 basis points tomorrow. Meanwhile, it appears that analysts are leaning toward a second rate increase in December, as high inflation in the United States persists.

The market has been consolidating after its late-August rally as a result of these macroeconomic woes. However, UNI is defying this gravity pull as the protocol’s profitability has skyrocketed.

Protocol Fees Could Skyrocket by 140% by the End of September

On-chain data from DeFi Llama shows that fees have been increasing for three months in a row now, moving from $44.2 million by the end of June to $118 million so far this month.

A simple run rate of September’s numbers gives us a projected total exceeding the $250 million mark, implying a 140% increase. Meanwhile, protocol fees in the last 12 months are nearing the $1 billion mark.

At that level, this results in a market-cap/fees ratio of just 4x. This metric indicates that the project could be undervalued from a fundamental standpoint, increasing the odds that this rally could push the price of UNI much higher if this bull market intensifies.

In addition, Uniswap has now attracted 2.4 million users on the Robinhood Chain, meaning a 16.3% increase in the past 30 days. Moreover, the protocol’s total value locked (TVL) has hit $2 billion, while monthly protocol volume hit $70 billion during the 30 days ended on September 12.

These are all impressive metrics that showcase the positive impact that the Robinhood Chain launch has had on Uniswap and how it has helped it overcome the hurdles imposed by a complex macroeconomic backdrop.

UNI Could Rally to $9 as Bullish Momentum Remains Strong

Turning to the daily chart, the price has resumed its upward trajectory to what we believe is its most likely target in the near term at $9.

In this scenario, Uniswap would flip multiple other projects and jump to the 12th spot among the most valuable crypto projects, provided that they perform as well as UNI during that period.

Positive momentum remains on the side of bulls, as the Relative Strength Index (RSI) currently sits at 64.

To get enough liquidity to keep going, UNI would have to break past $7.5 to trigger a major short squeeze. That said, the Federal Reserve’s interest rate decision tomorrow could still rattle the markets, depending on how hawkish comments from the head of the central bank are.

In case of a strong pullback, losing the $6 area could endanger the rally and push UNI down to $5 in the next couple of weeks.