UNI gained 8% in Bitcoin’s footsteps while Uniswap crushed 24h trading volume records on Optimism and Arbitrum

Uniswap UNI Arbitrum Optimism Ethereum
“Unicorn” by hamur0w0 is licensed under CC BY-NC 2.0

Key Takeaways:

  • Uniswap daily trading volumes on Optimism and Arbitrum break the last record.
  • UNI complied with the recovery wave across the market.
  • The daily chart technicals did not show a specific vector for future development.

YEREVAN (CoinChapter.com) – UNI, the native token of the largest decentralized exchange (DEX) Uniswap, gained 8% in unison with larger cryptos like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Binance Coin (BNB), etc. Uniswap’s record trading volume on Optimism and Arbitrum layer-2 solutions further spurred the rally.

Uniswap on Optimism and Arbitrum

In detail, both Optimism and Arbitrum are layer-2 solutions. They are ‘crutches’ for Ethereum, meaning they strive to solve the mainnet’s scalability issue. Layer-2s lower the notoriously high gas fees on the Ethereum mainnet and increase the transaction speed.

As Uniswap operates atop Ethereum, encumbered by the same issues, it will highly benefit from what Optimism and Arbitum have to offer.

In order to make countless dApps on the largest DeFi platform run more smoothly, developers transferred a part of them to layer-2s. Both Optimism and Arbitrum are still in beta, but they both already host Uniswap. Optimism launched the DEX in mid-July and Arbitrum deployment of Uniswap commenced on August 31.

As a precaution, Uniswap warned its users about the possibility of errors occurring on layer-2s while they are still in development.

Meanwhile, the popularity of the exchange on both layer-2 solutions is growing. According to the DEX’s founder Hayden Adams, Uniswap set a new record of daily trading volume ($33.3 million in 24-hours) on Optimism and Arbitrum combined.

Another factor in UNI’s ascend was the ubiquitous recovery led by Bitcoin. The alpha crypto gained 3 percent in the past 24 hours, reaching $48,070. The increase was enough to lead a trend across the altcoin market. As mentioned, Ethereum followed suit with a 3.7 percent advance, and ETH/USD exchange rate stood at 3,512.

Several smaller altcoins complied. Cardano’s ADA was up 5 percent, and Ripple Lab’s XRP gained 3 percent in the same period.

Also read: ETH forms bullish technical setup amid unsuccessful Ethereum attack attempt

UNI daily chart

The largest DEX’s native token met a confluence of resistance on its way on Tuesday. Both the 20-day exponential moving average (EMA-20; blue wave) and the 50-day simple moving average (SMA-50; red wave) could block the uptrend. Instead of recoiling from the said waves, the rally continued into the Wednesday New York session.

As a result, UNI climbed up above the EMA-20, and retested a significant support level at $25.6. The digital asset made it to $26.0 in the later hours. Should the uptrend continue, the crypto could reverse the death cross between EMA-20 and SMA-50 that occurred on Sep.12.

In detail, death cross happens anytime a short-term MA slips under the long-term MA. It is a bearish formation that signifies further losses, until the short-term MA restores the dominant position.

Uniswap daily chart. Source: UNIUSD on TradingView.com
Uniswap daily chart. Source: UNIUSD on TradingView.com

Also read: SEC’s harsh policy on US crypto exchanges echoes in South Korea; regulatory crackdown ahead?

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