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Uniswap (UNI) Price Surges 35% on ZKSync Integration, Here’s What to Expect

By:
Ibrahim Ajibade
Published: Jun 15, 2024, 21:15 GMT+00:00

Key Points:

  • Uniswap (UNI) price surged above $11 on June 15, bringing its weekly gains to 25% amid intense market volatility.
  • The rally comes after the Uniswap decentralized exchange team announced the Integration of ZKsync for enhanced trading experience.
  • Savvy traders have mounted active orders to sell off 5 million UNI tokens, according to Aggregate Order Books data from 20 crypto exchanges
Uniswap (UNI) Price Forecast

In this article:

Uniswap price surged above $11 on June 15, bringing its weekly gains to 25% despite the intense market volatility triggered by US Fed rate pause decision, how much further can UNI bulls ride the ZKSync partnership wave? 

Why is Uniswap Price Rising?

Uniswap is a prominent decentralized crypto exchange that allows users trade and swap crypto assets without intermediation, asset custody or the stringent KYC procedures of regular centralized trading platforms.

On June 15, the price of Uniswap’s native utility token surged to weekly peak of $11 as investors reacted to team’s announcement of an operation partnership with ZKSync, a move that could enhance users’ trading experience considerably.

Uniswap Price Action (UNI/USD) | TradingView
Uniswap Price Action (UNI/USD) | TradingView

A close look at the Uniswap’s weekly price chart shows how crypto investors have reacted to the ZKSync partnership with renewed optimism, defying bearish headwinds from the US Fed’s decision to pause rates despite a decline in CPI inflation.

The chart above shows how UNI price had initially tumbled to a weekly-low $8.7 recorded on June 12 after the Fed rate decision. But since the a flurry of  announcements from the Uniswap team triggered an instant rebound phase that saw UNI price reach $11.95 at the time of writing on June 15.

Uniswap x ZKSync Partnership Promises Enhanced Liquidity and Superior Trading Experience

Uniswap’s recent 35% price bounce over the past three days has been linked to the newly announced collaboration between with ZKSync.

ZKSync employs zero-knowledge proofs to enhance on-chain transaction capacity. This technology offers major advancements in both transaction speed and cost-effectiveness compared to the Ethereum mainnet.

Users can now leverage these advantages for token swaps and liquidity provision via the Uniswap interface.

Apart from token swaps, users can also provide liquidity on ZKSync using Uniswap’s platform. By navigating to app.uniswap.org/pool and selecting the ZKSync network, users can establish a new liquidity position by selecting their desired token pair.

This integration is likely to draw more liquidity providers to Uniswap, as the reduced gas fees and quicker transaction times on ZKSync create a more efficient setting for liquidity provision.

Uniswap Price Forecast: Profit-Taking Could Trigger $10 Reversal

Unsurprisingly, the ZKSync partnership has culminated in a 35% Uniswap price surge in the last 24-hours. But curiously, recent trends observed across major exchanges suggest that many UNI holders have moved to cash-in on the rally and sell at the current high prices.

IntoTheBlock’s Aggregate Exchange Order Books data which tracks the total number of active Buy/Sell limit orders placed for a given asset across several recognized crypto exchanges and trading platforms.

Uniswap Price Forecast (UNI/USD) | Exchange Order Books | IntoTheBlock
Uniswap Price Forecast (UNI/USD) | Exchange Order Books | IntoTheBlock

As seen above traders have mounted active orders to sell-off 5.2 million UNI around the current prices. Meanwhile, in comparison, the total active buy orders is below 3.5 million UNI.

When the number Sell orders exceed Buy orders during a market rally, it suggests that a large number of existing holders are moving to capitalize on the rally to book profits.

After the 35% price upswing, there’s now an excess supply of 2.7 UNI. If this supply gap is not filled by additional demand in the days ahead, Uniswap price stands the risk of a rapid reversal below the $10 mark.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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