UNI Rises 30% as Development Talks Fuel Investor Excitement

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Uniswap’s UNI token has gained favor among investors as it maintains its upward trend amidst significant on-chain developments. As reported by CoinGecko, the token has risen by 30% since last month, ensuring it stays in the positive range. With the market’s revitalized bullish sentiment, UNI may experience further gains in the near future.

Recently, Uniswap announced an enhancement that could improve the overall user experience on the platform. Investors are enthusiastic as the platform continues to find innovative solutions to boost user engagement.

Gas Abstraction: A Significant Improvement for Uniswap UX?

The Chief Technology Officer of Across Protocol, Matt Rice, and a Software Engineer at Uniswap, Mark Toda recently discussed the proposed ERC-7702, which, if approved, would introduce a new transaction type known as externally owned accounts (EOAs). In general, ERC-7702 aims to implement gas abstraction, a feature that would enhance user experience and save users a significant amount of money.

ERC-7702 Uniswap’s next big leap @MarkToda from @uniswap discusses with @mrice32 how gas abstraction could facilitate DeFi for millions. Is this the transformative user experience we’ve been anticipating? pic.twitter.com/UVR3Mid5HQ

— Across (@AcrossProtocol) September 24, 2024

Mark Toda pointed out that the main challenge for successfully implementing gas abstraction is to authorize a user’s address on-chain without gas.

“…Consider this: if you are attempting to send tokens on a random chain and wish to swap them or perform any action, currently you need to have a native token to cover the gas fees…or you must authorize some contract to take your tokens,” Toda remarked when discussing a situation where a user swaps tokens without available gas on the platform.

In simpler terms, one of the most significant attributes of ERC-7702 is gas sponsorship, which allows users to pay gas fees separately from their chain of origin. Once implemented, this feature will greatly enhance cross-chain interoperability, improving user experience.

UNI market cap currently at $4.6 billion. Chart: TradingView

At the time of writing, ERC-7702 is still in its draft phase, indicating that the innovative on-chain features discussed by Toda and Rice are still open for revisions. Nonetheless, it heralds a promising future for the Uniswap community.

UNI: Investors Should Monitor These Key Levels

Currently, UNI has managed to gain traction against the bearish trends in the medium term, positioning the token at the threshold of the $7.518 resistance level. This pivotal resistance may continue to hold as the market reaches its peak following days of bullish momentum.

With this context in mind, investors should keep an eye on the token’s movement in the upcoming hours and days, as this could determine its future trend. A breakout above this vital resistance level could pave the way toward $9.012 in the medium term.

Conversely, if the $7.518 resistance remains unbroken or if the bulls manage a brief breakthrough before retreating, it may lead to a downward movement by the bears targeting $5.899 in the medium term.

Featured image from Pexels, chart from TradingView

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