Uniswap ($UNI), the decentralized exchange (DEX) platform, has set the crypto community abuzz with its latest governance proposal. The proposal, aimed at incentivizing staking and delegation of UNI tokens through rewarding users, has ignited a surge in interest among investors and users alike. This surge has seen $UNI tokens soar by a staggering 60%, reaching a peak of $12.28.
After Ethereum hit $3k this week, today we look at one of the bigger surges of ERC-20 altcoins.
New Proposal with Airdrop
The proposal, unveiled via the official Uniswap blog, signals a strategic move to bolster community involvement in decision-making processes. By encouraging $UNI token holders to stake and delegate their tokens, Uniswap aims to cultivate a decentralized, resilient, and engaged governance system essential for the platform’s long-term vitality.
The proposal outlines:
“We aim to reward UNI holders who have staked and delegated their tokens… Decentralized, resilient, and engaged governance is imperative for the long-term health and success of the Protocol. We believe this update will strengthen and revitalize Uniswap governance.”
Uniswap’s founder specifically mentions future $UNI airdrops to go with the proposal.
This initiative not only seeks to fortify community participation but also aims for sustainable growth, ensuring the platform’s enduring success. Reports suggest a significant uptick in staking and delegation activities following the proposal’s announcement, indicating widespread support and anticipation for the upcoming votes.
The voting process is scheduled to commence on March 1, with an instant process followed by an online vote on March 8.
Trading $UNI
The market response to the proposal has been nothing short of remarkable. Traders and investors swiftly flocked to exchanges in anticipation of the proposal’s potential impact on the project. Within just an hour, UNI tokens surged from approximately $7.15 to $12.28, marking a remarkable 60% increase, with trading volume surpassing $1.68 billion within 24 hours, signifying a staggering 1,600% surge compared to the previous day.
Now these types of events offer you great trading opportunities. Whenever a coin skyrockets like $UNi did, I look for short & long opportunities. Yesterday I found 2.
During these moments, I look at a short timeframe. Either the 1 min or 5 min chart. When It looks like the volume on the green candles is going down, I look for a short entry with a tight stop-loss.
It’s a highly risky trade scenario, as coins that have momentum can blow through levels in a blink. Which is why I maintain a tight stop-loss strategy. On the other hand, the dips can be short-lived so you find a long entry using the same strategy.
Both these trades opened and closed within a 30-minute window. Short and sweet.
While the token has slightly retraced from its peak, trading at around $12 at the time of publication, it still reflects a notable 52.6% increase within the last 24 hours, indicating sustained enthusiasm and bullish sentiment among investors.
The proposal’s unveiling marks an exciting milestone for Uniswap, underscoring the significance of community-driven governance in shaping the future of decentralized finance (DeFi). As the platform continues to evolve, such initiatives promise to pave the way for a more inclusive and resilient ecosystem, propelling Uniswap to new heights in the burgeoning DeFi landscape.
Final Words
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