Uniswap [UNI] Surges 18% in a Day – It’s Not Just Because of Ethereum

Key Points

• Uniswap (UNI) price surged following the introduction of the ERC-7683 standard.
• The token’s Open Interest hit a monthly high, suggesting a possible rise to $12.

Uniswap’s (UNI) price experienced a significant increase, rising by 18.98% to reach $9.30 within a 24-hour period.

This unexpected surge was attributed by some to the increased likelihood of the U.S. SEC approving Ethereum (ETH) spot ETFs, which resulted in a jump in Ethereum’s price.

ERC-7683 Standard and Open Interest

However, other factors also contributed to UNI’s price boost. On May 20th, Uniswap Labs announced the introduction of a new token standard, the ERC-7683.

This standard, used for creating and issuing smart contracts on the Ethereum blockchain, aims to solve network fragmentation and enhance cross-chain interaction.

Following this announcement, UNI’s Open Interest (OI) rose to $64.90 million, a level not seen for over a month.

A rise in OI generally indicates an influx of money into the market, suggesting that market buyers were aggressive. If this trend continues, UNI’s price could follow suit.

Active Addresses and Volume

In addition to the OI, changes in the network, such as an increase in 24-hour active addresses, also fueled UNI’s price hike.

An increase in active addresses usually signifies a large number of users interacting with the blockchain, which can lead to increased buying activity.

For UNI, on-chain data revealed a weekly high of 1926 active addresses, indicating a surge in holder confidence and likely contributing to the token’s price increase.

Furthermore, the volume of UNI also confirmed the heightened interest, standing at $346.65 million. If this figure continues to rise alongside the token’s price, UNI could potentially reach a value between $12 and $15 in the near future.