Will Launch of UNI token by UNISwap help to rectify GAS Fees issue?

Yesterday on 17th September 2020, a big strategic move by UniSwap to launch their own token UNI (based on Ethereum) has shook cryptocurrency market. We will talk about how this UNI token could impact DeFi projects and other cryptocurrencies in upcoming few months. Specifically, we will focus on a biggest problem for DeFi projects investors that is Gas Fees. And check if this UNI token could help to overcome GAS Fees.

DeFi projects are getting more popularity since 2nd half of this year 2020. Also, as per reports, in the month of August, most money was spent on Ethereum gas fees. For investors who wanted to invest in DeFi projects had to spend more money on Gas Fees. This high Gas fees discourage small investors and keep them away from DeFi project. Also due to scalability issue of Ethereum many investors had to wait for completion of transaction for longer time. Because miners prioritize transactions which are high in value to make more commission in shorter time.

Following are possible changes/impacts of UNI token on DeFi project:

  • Less Demand of Ethereum Because of UNI, a native token in UniSwap network, there is a possibility of decrease in demand of ETH by DeFi farmers as they will be having a good alternative option.
  • UniSwap users can earn more passive income DeFi Farmers have multiple options to earn as just after launch of UNI token. So, now DeFi farmers can earn more UNI token by farming in above pools as well as part of trading transaction fees.
  • Ease of Access to DeFi projects: Life of DeFi farmer is not so good as they had to spend a lot of money on Gas Fees and at the same time they must wait for hours and hours for transaction getting successful. But after launch of UNI token, we can expect some relief will be experience by DeFi farmers.

Uniswap Token entered with UNI token in cryptocurrency market without any notice or official announcement but now it could be highest paying crypto asset in DeFi project. In global crypto market chart, many top predictors believe that UNI Token can land on 3rd position soon. This token will be work universally in both version of UniSwap and after it is available for swapping with other deFi Token i.e. ERC-20 non-custodial tokens. UniSwap might not be first one, who introduced automated market maker in blockchain industry but as of now it is ruling decentralized finance trends.

In future UNI token may end up by crossing $10 USD mark and those who hold enough account balance to receive 400 UNI Token will have $4000 USD in their wallet. UNI Token already crossed all time market volume of Balancer, Serum, SushiSwap and other existing DEX platform. the launch of UNI Token already scare other deFi token, but it also ultimately boosts hype of DeFi again in 2020. In simple word year 2020 will be in favors of finance without central entity, as some of bigger trading platform including Binance, Huobi, Coinbase trying to bring this token on their platform.

This UNI token (UniSwap) which is brought up after its competitor SushiSwap launched their own token named Sushi few days back. Sushi token got popular in few days due to its bullish market trends and sudden surge worth of 10,000%+ ROI. Later it started dropping off, Sushi token faced many negative reviews and bad words after owner of SushiSwap withdraw his part in to Ethereum. Later, he invested back all money he withdrawn back to Sushi token.

Binance, Crypto.com, Huobi aim to start new trend i.e. CeDeFi i.e. centralized decentralized Finance means it will be owned by Centralized entity but operated by governance system. Recently crypto.com, Binance together launch project like Wing, Bella Protocol and DefiSwap for which they pushing flexing saving by holding their own token. now with this UniSwap may see competition in future but currently no one can replace UniSwap, as new project continues to list on UniSwap and trend of deFi will stay forever.