2025-02-01 12:21:02 by coinpaprika

By Jakub Lazurek 01 Feb 2025 (4 days ago) 2 min readUniswap launches its v4 upgrade with major cost cuts and developer tools, but UNI’s price briefly spikes before crashing, failing to gain momentum.Uniswap has officially rolled out its v4 upgrade on the mainnet, introducing major improvements like hooks for developer customization and significantly lower costs for creating liquidity pools—down by an impressive 99.99%. The update, which arrived slightly later than expected, enhances flexibility for developers and integrates native Ethereum support. Despite high anticipation, UNI’s price failed to sustain an upward trend. It briefly surged but quickly dropped again, mirroring a bearish market trend. Many had expected the launch to boost UNI’s value, as seen when Uniswap v3 went live in 2021. However, broader market conditions may have played a role in limiting its impact. Uniswap, one of the leading decentralized exchanges on Ethereum, first revealed plans for v4 in June 2023. However, no firm date for the launch was ever confirmed. Earlier this week, the team finally announced the deployment, and today, it went live. “Uniswap v4 is here! v4 transforms the Uniswap Protocol into a developer platform,” they shared on social media. The key feature of this upgrade is hooks—smart contracts that allow developers to customize swaps, fees, and liquidity provider interactions. The possibilities for new trading features are now practically endless, which could deepen liquidity and improve trading efficiency. This version also aims to be the most cost-effective yet. Developers claim that deploying pools is now dramatically cheaper, removing one of the biggest financial barriers for liquidity providers. However, there was an unexpected downside: the impact on UNI’s price was underwhelming. Many in the community had hoped the launch would provide fresh momentum, but the reality was different. UNI hit a three-year high in mid-December, but its value plunged shortly afterward. Some traders had pinned their hopes on v4 reviving its price, yet the market didn’t respond as expected. Several factors could explain this. Broader economic conditions continue to influence crypto markets, and competition among decentralized exchanges remains fierce. While v4 brings technical improvements, it may take time for these changes to translate into price movement. Despite the lukewarm market reaction, Uniswap’s developers remain optimistic. They have set up record-breaking bug bounties, encouraging security researchers to find potential flaws and ensure the platform remains secure. Their confidence suggests that while the initial impact on UNI’s price has been limited, the upgrade could still prove crucial in shaping Uniswap’s future. Go back to All News