• Uniswap V4 offers lower transaction costs for users on the DeFi platform.
• Native ETH support reintroduced with the upgrade may unlock more liquidity for Uniswap.
• UNI’s native token may benefit from lower fees in the long-run if they trickle down to users.
Uniswap V4 Upgrade
The DeFi platform Uniswap has recently rolled out its major upgrade, dubbed Uniswap V4, which focuses on lowering transaction costs and introducing native Ethereum (ETH) support.
Lower Transaction Costs
Uniswap founder Hayden Adams has stated that deploying a liquidity pool will be up to 99% cheaper thanks to the singleton design of the new iteration; this could make the protocol more attractive. Although on-chain volumes have been dwindling due to investor interest, implementing lower transaction fees could give users incentive to return.
Native ETH Support
The reintroduction of native ETH support could also positively affect user growth as Ethereum is currently the largest decentralized ecosystem; consequently, unlocking more liquidity for Uniswap.
Impact on UNI Token Price
UNI’s native token may benefit from these changes in the long run if they trickle down to users. Despite a recent price spike, UNI still remains heavily discounted and traders appear optimistic about its prospects with rising weighted sentiment.
Future Outlook
However, UNI lacks sufficient volume data at present and it remains unclear whether or not it can sustain bullish momentum going forward.