UNI rallies as Uniswap Labs unveils Layer-2 Unichain on mainnet
- Uniswap Labs announced the launch of its Layer-2 solution, Unichain.
- Built on the Optimism Superchain, Unichain supports interoperability across several Ethereum-native blockchains.
- UNI gained over 6% following the announcement but has since seen a correction.
Uniswap's native token, UNI, is up on Tuesday following the Mainnet rollout of its latest Unichain Layer 2 (L2) solution. Unichain promises to offer users faster and cheaper transactions than the Ethereum L1.
Uniswap's Layer-2 blockchain Unichain goes live
Uniswap Labs, the team behind the largest decentralized exchange on Ethereum, has introduced its own Layer 2 network.
In a press release on Tuesday, Uniswap Labs revealed the debut of Unichain, designed to help scale the Ethereum mainnet.
Unichain was first unveiled in a testnet in October, with the Uniswap team claiming that it was designed to scale the Ethereum roadmap by offering a 95% cost reduction compared to the mainchain.
Unichain leverages Optimism's Superchain to enhance transaction speed and affordability, making it a more scalable alternative to Ethereum's mainnet.
The press release also states that several protocols, including Uniswap, Circle, Coinbase, Lido and Morpho, have already begun building on Unichain.
Unichain's launch comes just two weeks after the rollout of the Uniswap V4 upgrade on several Ethereum-native blockchains, including Arbitrum, Optimism and Base.
A major update in v4 is the introduction of hooks — smart contracts that enable developers to customize various aspects of the protocol, including liquidity pools, fees and swaps.
Uniswap Labs claims that Unichain was designed for DeFi users and developers, offering developers access to build and deploy decentralized apps.
It also allows users to integrate stablecoins into their apps while leveraging swapping and liquidity pools via its v4 platform.
Additionally, the team claims that users can bridge their tokens onto Unichain through the Uniswap wallet, create their own tokens and access new projects and apps.
UNI, the native token on Uniswap, showed signs of a rally following the positive sentiment from Unichain's launch. The token rallied over 6% before seeing a correction in the past 24 hours. If investors see Unichain’s launch as a bullish catalyst, UNI could recover from its 30% decline in the past month.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
