Uniswap (UNI), the native token of the biggest decentralized exchange protocol, has risen to $8. 76 as DeFi activity remains to grow in different blockchain networks. This price movement indicates that there is increasing demand for decentralized trading platforms and Uniswap’s increasing importance in the DeFi space.

The following are some of the factors that have led to the recent rise in the price of UNI; the trading volume and liquidity on the Uniswap platform has been on the rise recently. With the increasing number of users who are now using DEXs for their trading activities, Uniswap has remained one of the leading DEXs with high trading volumes.

This has made the protocol to be efficient in token swaps with little slippage and has attracted both the retail and institutional traders, increasing the demand for the UNI token.

The recent success of Uniswap can be attributed to the protocol’s ability to extend its operations across multiple blockchain networks. Uniswap was first built on Ethereum, but later on, it was deployed on layer-2 solutions such as Optimism and Arbitrum and other EVM compatible chains such as Polygon and Binance Smart Chain.

This multi-chain approach has enabled Uniswap to expand its user base and provide lower transaction costs, hence increasing usage of the platform. The listing of UNI on several exchanges and the launch of Uniswap v3, a significant improvement in the protocol, has also boosted its price.