Uniswap introduces Unichain, sparking a 12% surge in UNI token Uniswap introduces Unichain, sparking a 12% surge in UNI token
Uniswap's Unichain promises faster, cheaper transactions compare to Ethereum layer-1 network.
2 min read
Updated: Oct. 10, 2024 at 4:06 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Decentralized exchange Uniswap‘s UNI token surged following the announcement of Unichain, the platform’s Ethereum layer-2 network.
Data from CryptoSlate shows that UNI rose over 12%, reaching $8.07—the highest it’s been in three months. This rise made UNI the top-performing digital asset in the market, which otherwise saw major tokens like Bitcoin lose about 2% of their value.
As the governance token of Uniswap, a leading decentralized exchange with over $2.4 trillion in trading volume, UNI is ranked among the top 25 digital assets by market capitalization.
Unichain
On Oct. 10, Uniswap Labs unveiled Unichain as a key solution in advancing Ethereum’s scaling roadmap.
Designed with DeFi users and protocols in mind, Unichain is built on the Optimism Superchain, an Ethereum layer-2 (L2) network utilizing Optimistic rollups.
Unichain promises one-second block times, delivering near-instant transaction speeds. This enhancement improves user experience, boosts market efficiency, and reduces losses from miner extractable value (MEV).
Furthermore, Unichain offers around a 95% reduction in transaction costs compared to Ethereum’s layer-1, with the potential for even lower fees in the future.
Unichain also plans to introduce a decentralized validation network, allowing nodes to verify blocks. This feature will add extra security and reduce the likelihood of conflicting or invalid blocks.
Unichain will support seamless multi-chain swaps, ensuring fast and secure cross-chain transactions. As part of the Optimism Superchain, it offers native interoperability while adhering to standards like ERC-7683 to make cross-chain swaps smoother.
Unichain will be MIT-licensed to encourage widespread adoption of the technology. The network’s testnet is now live, with a mainnet launch expected soon.
Why L2s are importance
In the past year, the crypto industry has seen an influx of layer-2 solutions, with market experts arguing that this has caused network fragmentation.
However, Uniswap Labs’ CEO Hayden Adams explained the importance of multiple L2 chains for scaling Ethereum, pointing out that the “internet of value can’t operate on a single chain.”
He stated:
“The internet of value can’t run on a single chain. Ethereum’s rollup-centric roadmap aims to scale by having many L2 chains that seamlessly interface with each other. We are excited by this vision, and aim to accelerate it.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Since its inception, the Uniswap Protocol (“Uniswap”) has served as a trustless and highly decentralized financial infrastructure.
Ethereum
$3,385.61
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Bitcoin
$93,596.71
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Optimism
$2.24315
Optimism is a layer-2 scaling network for the Ethereum blockchain.
Uniswap Labs
Uniswap Labs is a corporation that builds products on top of the Uniswap protocol to make it simple and easy to use. Its headquarters is in New York, New York, and it was created in 2018.
Designed with simplicity in mind, the Uniswap protocol provides an interface for seamless exchange of ERC20 tokens on Ethereum.
Hayden Adams is the inventor of Uniswap Protocol, an open-source protocol for providing liquidity and trading ERC20 tokens on Ethereum.