Analysis of the rise potential of Uniswap, the flagship project of the Ethereum ecosystem

Recently, the price of Ethereum has rebounded strongly, driving the prosperity of the entire Ethereum ecosystem. As one of the important projects in this ecosystem, the performance of Uniswap (UNI) is notable. This article will delve into the growth potential of Uniswap from the perspectives of regulatory environment, business development, and token economics.

Positive Changes in the Regulatory Environment

In the past few years, Uniswap has experienced multiple shifts in regulatory attitudes:

The period from 2021 to 2023 was a phase of regulatory ambiguity, during which the U.S. Securities and Exchange Commission (SEC) launched an investigation into Uniswap Labs, sparking widespread discussion about whether decentralized finance (DeFi) platforms should be subject to securities regulations.

The year 2023-2024 enters a period of regulatory pressure, with the SEC issuing a Wells notice to Uniswap Labs, accusing it of potentially violating securities regulations. Uniswap Labs subsequently submitted a detailed rebuttal.

Since 2025, the regulatory environment has started to loosen. The SEC has terminated its investigation of Uniswap Labs and invited it to participate in discussions on cryptocurrency regulation. The U.S. Congress is also moving forward with a new regulatory framework for digital assets, providing clearer legal guidance for the cryptocurrency industry.

This series of changes indicates that regulators are working to adapt to the development of the cryptocurrency industry, creating a more favorable operating environment for projects like Uniswap.

Business development continues to improve

Uniswap maintains a leading position in the decentralized exchange (DEX) space:

1. Strong business data: Uniswap currently has a total locked value of (TVL) exceeding 5.1 billion USD, with a 30-day trading volume of 84.5 billion USD and an annual revenue of nearly 1 billion USD. If calculated using traditional valuation methods, its price-to-earnings ratio is significantly lower than that of its peers, indicating substantial growth potential.

2. Solid financial status: As of the first quarter of 2025, the Uniswap Foundation holds a large amount of cash and cryptocurrency assets, expected to sustain operations until early 2027.

3. Tokenomics Innovation: Uniswap has been exploring ways to enhance the value of the UNI token, including proposals to restart the fee switch and the launch of the Unichain layer 2 network. These initiatives are expected to bring new use cases and value to the UNI token.

Token Market Performance

The UNI token currently has a market cap of $4.2 billion and a fully diluted valuation of $6.7 billion. About 37% of the tokens are staked.

In the derivatives market, the open interest value of UNI is approximately $448 million, accounting for 10.6% of the market capitalization. The positions of large holders show a bullish tendency, indicating positive market sentiment towards UNI.

From the price trend, UNI shows a similar pattern to ETH, but with greater volatility. Considering the recent strong rise of ETH, UNI may have the potential to catch up.

Conclusion

With the improvement of the cryptocurrency regulatory environment, Uniswap, as an industry-leading DEX protocol, is expected to benefit from it. Its strong business data, robust financial condition, and continuous innovation efforts provide solid value support for the UNI token. Against the backdrop of the ongoing prosperity of the Ethereum ecosystem, Uniswap, as one of the core projects, is worth the continued attention of investors.