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Uniswap has overtaken Ethereum in daily user feesÂ
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UNI token has surged 26% in the past week
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UNI Breaks above the $6 resistance
Uniswap’s UNI is one of the tokens leading the crypto recovery in the year’s second half, thanks to network expansion. According to data from CoinMarketCap, UNI has surged 26.6% in the past week alone and 35% in the past month. Currently, the token is trading at $6.17, with the fundamental and technical outlook in favor of the bulls.
Uniswap is a decentralized crypto exchange that is based on Ethereum. The DEX uses an automated market maker system instead of the conventional order book. The platform has grown to become the world’s largest DEX. The exchange is powered by a UNI token that gives user governance rights.
Uniswap surpasses Ethereum in user fees
The latest Data from Crypto Fees shows that Uniswap is ahead of Ethereum with $2.5 million in daily user fees ahead of Ethereum’s $2.4 million. The surge in fees is linked to the low-cost transactions in the DEX compared to the gas fees paid in Ethereum. This is despite the latter hosting more blockchain projects compared to the former. Uniswap fees are paid to the liquidity providers, while the Ethereum fees are paid to PoW miners.
UNI trades slightly above the $6 resistance
Source: TradingView
A closer look at UNI technical outlook shows that the token is poised for a bull run. UNI has moved from the $3.3 support to trade at around $6.16 resistance. The 20-day and 50-day moving averages are offering support from below. Another bullish indicator in UNI is shown by the RSI reading. Although the metric is close to the overbought zone, it has not breached the level, and further upside can be seen.
Summary
Although Uniswap is flashing bullish signals, a retracement is imminent before a further increase can be seen. A price around the $5.3 support will present an ideal entry-level. Nonetheless, UNI remains a good token to hold with its strong fundamental aspects. Decentralized exchanges are gaining adoption, and with the increasing number of users, the UNI token will remain on an upward trajectory.
