Uniswap (UNI) has extended its winning streak to seven consecutive days, climbing to $3.50 on June 17—its highest level since late May. The rally follows a bullish report from Standard Chartered analysts, who argue the token is significantly undervalued and could surge tenfold from current levels.
Standard Chartered's Bullish Case
In a research note published this week, Standard Chartered highlighted Uniswap's entrenched position in decentralized finance (DeFi). The bank projects the tokenization industry will expand from $340 billion today to $4 trillion within two years, positioning Uniswap to capture a meaningful share. Analysts stated that if Uniswap can commercialize effectively and forge partnerships with traditional finance (TradFi) players, its market cap-to-transaction fees multiple could narrow the gap with Coinbase.
Despite the optimistic outlook, Uniswap faces mounting competitive pressure. While it remains the largest decentralized exchange (DEX) by volume—processing over $48 billion in the past 30 days, far ahead of PancakeSwap ($24.4 billion), Aerodrome ($18 billion), and Orca ($6.4 billion)—its overall volume has been declining. Quarterly volume peaked at $314 billion in Q3 2024 and has since fallen to $102 billion in the current quarter, down from $165 billion in Q1. This slowdown has translated into lower fees and revenue: $116 million this quarter versus $151 million in Q1 and $298 million in the same period last year.
The Hyperliquid Challenge
Hyperliquid has emerged as a formidable competitor, particularly in perpetual futures trading. Over the last 30 days, Hyperliquid's volume reached $244 billion, surpassing Uniswap. The platform has diversified into tokenized traditional assets like crude oil, gold, and stocks, gaining traction during geopolitical events such as the Iran conflict. TokenTerminal data shows Hyperliquid generated over $900 million in fees over the past 12 months, while Uniswap does not rank among the top ten fee generators.
Hyperliquid's layer-1 network also outperforms Uniswap's layer-2 solution, Unichain. Hyperliquid boasts $1.6 billion in total value locked (TVL) and $6.48 billion in stablecoin supply. In contrast, Unichain's TVL has plummeted from $878 million in July 2024 to just $24 million, with stablecoin supply dropping to $142 million.
Technical Outlook
From a technical perspective, UNI has broken above the key resistance level of $3.02—its April low—and is now trading above its 50-day moving average. The Relative Strength Index (RSI) has entered overbought territory at 70, suggesting a potential pullback as traders take profits. If a correction occurs, the $3.0 level will be a critical support to watch. A drop below that could signal further downside toward $2.5.
For broader market context, recent moves in Nvidia stock and TSMC stock highlight ongoing volatility in tech sectors, while gold retreats amid oil price spikes that could complicate inflation dynamics.
This article is for informational purposes only and does not constitute financial advice.
