Is Uniswap a good investment for the upcoming altcoin season?

In the current turbulent crypto market, which is trying to recover from the recent crashes that affected major cryptocurrencies like Bitcoin and Ethereum, the question of whether altcoins like Uniswap (UNI) are worth considering is becoming more and more relevant.

The altcoin season, a period in which alternative cryptocurrencies experience significant growth, is eagerly awaited by investors looking to recoup losses incurred during bearish trends.

Current performance of Uniswap (UNI)

Uni swap (UNI) has seen a 3.13% drop in value in the last 24 hours, trading at $9.93 at the time of writing, and is down over 13% in the last week. Despite this bearish trend, UNI's value has risen by over 6% over the past month. With a market capitalization of $5.95 billion, UNI ranks 17th in CoinMarketCap's crypto ranking.

Market activity and liquidity

Uniswap has seen a decrease in trading activity, with volume down approximately 26% to $128.94 million in the last 24 hours. However, the token has a total locked value of $5.20 billion and a market cap/TVL ratio of 1.14, indicating a healthy level of liquidity and market participation. Although UNI reached its all-time high of $44.97 on May 3, 2021, it has since fallen 77.91% from that high.

Key developments and partnerships

Uniswap V2, introduced in 2018, and Uniswap V3, launched in 2021, offered new features aimed at improving capital and infrastructure efficiency. The protocol allows anyone to create liquid pools for token pairs without the need for identity verification.

Uniswap has partnered with ZKSync to increase on-chain transaction capacity. This collaboration allows users to exchange tokens and provide liquidity to ZKSync through the Uniswap interface.

Investing in Uniswap (UNI) during the altcoin season depends on various factors. Despite recent fluctuations in price and trading volume, UNI has solid market cap and liquidity, establishing itself as an important player in the DeFi space. Innovative improvements to the protocol such as the inclusion of ZKSync to increase transaction efficiency highlight its flexibility and growth potential.