Uniswap v3 release date and price prediction
According to a comment posted on Twitter by Uniswap CEO Hayden Adams, there is no official launch date for the V3 protocol. However, based on the Uniswap dev team's Twitter posts and clues on the web, we can expect the third generation in 2021. Together with the Experty members who are following the Uniswap actions, we have tried to establish at least a time frame. Also, I've asked about opinions related to the impact of the UNI token's utility on its price and competition, which may change the balance on the market of decentralized exchanges.
Most believe that the Uniswap V3 protocol will appear between Q2 and Q3 2021. However, in the UNI token utility-price ratio, opinions are very divided. Therefore I encourage you to read the personal insights of Experty members.
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I regularly use Uniswap and related platforms. I could imagine that V3 will still come until the end of Q1 2021, but I haven't a reliable source for a precise prediction. I'm especially looking forward to a layer 2 scaling solution and hope this will be integrated.
I'm not too familiar with the UNI token utility. But next to the governance function, indirect use cases as airdrops, whitelisting procedures, and other activities of cooperating ventures partially take the UNI token holding as a reference/criteria. Uniswap is dominating the DEX market (at the moment with about 50% market share). Even more surprising, in a consolidated view of CEX and DEX, Uniswap grew into the top 7 global exchanges by 24h volume.
There are rivals like Sushiswap that have a pretty decent volume (despite the turbulent past times). I believe that DEX rivals with distinct USP's like already integrated layer 2 scaling solutions, innovative derivatives trading, and DEX aggregation solutions might have a bright future. Therefore, platforms like 1inch, Loopring, dYdX, and Synthetix could develop pretty well over the next quarters.
Although I'm not a frequent user of the service, the times I used it, I always complained about network fees that have become uncontrollable with all the FOMO generated by DeFi last year, so what to expect for its next V3 version is to start thinking about migration to the new consensus algorithm of the ethereum network (PoS - Serenity). The liquidity and staking programs, the recommendations of the UNI tokens were a pillar during 2020.
Confidence has made its price reach such highs, based on a good idea and a good service, they have managed to keep its value growing, despite the stumbling blocks they have, they continue to prevail against their competition.
All the controversy generated by the well-known “vampirization” of open-source during the past year, services like SushiSwap, for example, faced it for a while before its developers began to lose their trust users. Each new project that rewards its users with an airdrop produces a snowball effect that brings with it more users, as is the example of 1inch, which in a short time has also managed to position itself. Curve and Compound aren't far behind. They've been positively creating community in recent times, which suggests that the future of finance is more decentralized than centralized.
Since their model rewards UNI token holders that actively engage with the governance, it depends on their activity. Passive investors may lose value because of inflation (although the inflation isn't that high so even passive investors could gain value, relative to active holders, they will perform worse).
Often, people hop to clones because of a higher yearly yield, but then when more people join, the yield drops to normal, and they aren't that attractive anymore. The only way for the long-term competition is to make actual improvements, but that requires effort and time.
Considering that V1 was launched in 2019, v2 in 2020, we should expect Uniswap v3 within the first 3 quarters of 2021.
Given the limitation of its purpose, I perceive UNI's value subject to external events such as regulatory pressure or hacking to decentralized exchanges, which drive DEX and, in this case, UNI and its token.
I don't see strong competitors for UNI at the moment. It's trading volume, user base, and the expectations of improvements to be implemented in v3 place it far above its competitors. Pancake Swap seems to be super interesting, given the low network fees in Binance Smart Chain and several protocol functionalities.
Seeing the bull market and the competition coming from Binance, I would say before Q3 easily we can expect Uniswap V3.
Currently, UNI serves as a governance token, and according to official plans for 2021, it is not expected that there will be additional functionality for the UNI token. UNI is an exchange token just like BNB and KCS but with more utilities could reach good levels just like BNB, but the competition is big among Decentralized Exchanges.
Putting Binance aside: because CZ is trying to compete with Ethereum at all levels. I believe 1inch exchange and other layer exchanges like Sushiswap, Honeyswap could share the current market.
Uniswap V3 has already rolled out on Github so maybe we can expect it in Q2 2021.
I guess the token value doesn't come from features (like governance). The value and potential growth come from new traders in the market and big players like Binance who makes a real good Marketing, even if the Casual newbie doesn't know anything about token utility.
UNI token has a lot of strong rivals in the market like YFI, DOT, soon ETH2, CRO even though they made a lot of mistakes in the past.
I think Uniswap V3 may launch in April/May 2021.
UNI can determine how Uniswap can grow in the future and also is a tradable asset. Further, looking at the past results, I consider this as a good investment.
Uniswap does have a major rival in the form of a SushiSwap. Further, given that the exchange platform Binance is also entering in Liquidity Pools, it could take away a major chunk of investors/LP providers from Uniswap.
If Uniswap V3 will be released without any real upgrade to its role, it won't increase its price. 1Inch increases its growth, with the current v1.1 iteration with many DEX protocols coming online or improving like Polkadex, 0x, etc. The leader, as BTC does, has to adapt and evolve. Governance is only suitable for the wealthy. Others are adapting their model, with weight equal to person, not token. Otherwise, the 1% lead, the rest have to follow regardless. Loopring l2 has a good chance of taking many Liquidity Providers, with cheaper gas, less earning at 0.15%.
We should expect Uniswap V3 after this bull run ends and possibly in the second quarter of the year.
UNI token has not fulfilled the first launch long-term goal until that goal has been achieved before plans can be made UNI has done about 470%, and this has just begun. Another functionality will be added as soon as we have a concrete DAO.
UNI is the bitcoin of DEX tokens, and this is the beginning of long-term bull. No token can take Liquidity Providers away from Uniswap, not even 1inch Token.
In my opinion, we can expect Uniswap V3 in fall 2021.
At the moment, UNI's value corresponds to the functions it performs, but expecting something miraculous from it is not my goal. I perceive Uniswap as a regular directional exchange. I mainly seek to profit from other directional currencies.
A competitor to Uniswap could be Compound because of a fairly strong start in the market and investment performance. Accumulation functions much more reliably. In my opinion, if the direction of this currency stabilizes, it will create strong competition for many currencies on other platforms.
The next Uniswap version should be upgraded in terms of security. For instance, by anti-spyware browsers plugins on Brave and Chrome so popup phishing tactics could be avoided.
The real value of a token is based upon its functionality, like savings it generates. UNI has to be adopted as a utility token to increase value. So if V3 won't have additional functions besides governance, UNI will be pumped and dumped without increasing the market cap.
Uniswap has many rivals like Tenet or Polkadot, which are capable of taking away Liquidity Providers.
Uniswap, 1inch, and other DEX's don't have a bright future at this level of development because of transaction costs. A few days ago, I sold a coin bought a few months ago, and I paid 120$ fee (10% of my exchange). On CEX's like Binance or Coinbase, I'm paying around 0.075% of the transaction or lower. Everyone says about decentralization - but not anyone really wants to face the real truth. I know that many other networks are much cheaper, but we can't lie to ourselves that everything is amazing when it's not, we have to face both - good and the bad sides of the technology we're using.
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It seems that everyone is waiting for the V3 version because of high transaction fees, and the next generation of Uniswap protocol based on Layer 2 should solve this problem. Most believe that the price is not firmly related to utility but to the popularity of the platform itself, and Uniswap is undoubtedly the number one as Decentralized Exchange. However, we should consider that the competition is not sleeping, so without additional utility for the token (apart from governance), it can quickly disturb the balance on the market.
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Please Do Your Own Research always! We are not financial advisors, any information provided in this article is not intended as investment or financial advice. It is merely information based upon our own experiences. The information we present is of a general nature and should merely be used as a place to start your own research and you definitely should conduct your own due diligence. You should seek professional investment or financial advice before making any decisions.