Erik Weijers, 9 months ago
Starting this fall, users of Uniswap will also be able to trade NFTs. Until now, on Uniswap it was only possible to trade ERC-20 tokens, the "normal" fungible tokens on Ethereum. The move into NFT land shows that Uniswap is and will continue to be an innovative player, and possibly will only become more dominant in its niche.
What is that niche? Uniswap is a decentralized exchange (DEX). That is, it allows users to trade directly, wallet to wallet, with other crypto owners. There is no middleman, no help desk: it is pure software.
Now Uniswap has bought Genie: an NFT marketplace aggregator. Genie is a platform where you can at once access multiple NFT marketplaces: Opensea, LooksRare, Foundation, and X2Y2. Genie is around since November 2021 and is taking market share from competitor Gem.
With the acquisition, Uniswap clearly signals its intention to offer all digital goods that people can own. Current users of Genie will benefit from the acquisition: they will receive an airdrop in USDC. The 'snapshot' that determines which Genie users qualify has already been made.
Since 2020, the use of Uniswap has exploded. Despite all the copycats, like Sushiswap and Pancakeswap, it is still by far the largest DEX. Its trading volume on the order of $1 billion per day is comparable to a centralized exchange like Coinbase.
Uniswap has its own coin: UNI. Its price has been in a free fall in recent months. This, of course, has to do with the overall malaise in crypto. The fact that Uniswap has a consistently high market share and is clearly innovating are good signs.
Can UNI price rise due to fee switch?
One of the ways in which the price of UNI could benefit from high trading volumes is the so-called fee switch. Currently, a trading commission (fee) of 0.3% per trade goes to the liquidity providers: these are users who put their capital in liquidity pools. In the Uniswap protocol there is a possibility encoded to pay 0.05% of the transaction fee to the protocol itself, which would benefit the holders of UNI. It is not yet known if and when this fee switch will be turned on. For Uniswap, it is now a USP that it pays out the most to liquidity providers of all DEXes. On the other hand, the holders of UNI would also like to see a return on their investment.
Mar 22, 2023
Most crypto and NFT-related software are open-source and it is kept this way for good reason. But as soon as companies start showing interest in new technology, they want to keep their developments safe by securing intellectual property. Often this reveals highly interesting trends because to protect this property, companies have to file patent applications. These applications are public and therefore everybody can take a good look at what might become the future in the respective field.
Mar 21, 2023
Arbitrum just launched the ARB token with a long-awaited airdrop. Many traders were active on the platform just to be qualified to receive the tokens. This raises the question of whether the recent success of Arbitrum is a product of airdrop hunters searching for another opportunity or if this represents the organic growth of the platform. Layer-2 networks are believed to solve many problems blockchain technology is still facing today.
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Airdrops are very popular among crypto investors. They offer the opportunity to gain free tokens and possibly make a fortune selling them at the right time. There are even airdrop hunters trying to guess which project presents the next opportunity to earn free coins and tokens. Arbitrum was rumored to be the next in line since it started. The waiting is over as the team has announced the airdrop of the ARB tokens this month.
Mar 15, 2023
Amazon is actively looking into NFTs. Lego is entering the metaverse and companies like Adidas already have celebrated successful partnerships with iconic NFT projects such as the BAYC. NFTs are not the only use case when it comes down to Web3 but they do play an important role in this developing ecosystem. While some companies are opening themselves up to new ideas and opportunities, others are shutting their doors by trying to control digital products rather than sharing them with their customers.
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