LD Capital Founder Jack Yi believes UNI has the potential to reach new highs as it follows Bitcoin and Ethereum’s lead in the bullish rally. The asset is the third largest in the company’s balance sheet.
In a recent post, the LD Capital founder highlights the characteristics that make Uniswap’s (UNI) native token a strong contender in the altcoins race. He expressed optimism in the asset that occupies the third-largest share in his company’s, crypto holdings. Seeing as the two other large assets, Bitcoin (BTC) and Ethereum (ETH) have seen strong gains in the past few days.
“BTC keeps hitting new highs, ETH is surging toward a new high, UNI is three times away from a new high. After ETH’s trend is confirmed, it hailed as 3x Ethereum leverage. The token has significant certainty and potential,” said Yi in a post shared to his official X account.
According to data from crypto.news, the token has managed to benefit from the ongoing crypto rally. Its value has increased by more than 19% in the past 24 hours of trading. It reached a daily peak at $10.77, which stands only 76% away from its all-time high level at $44.92.
At press time, the token is currently trading hands at $10.70 following the recent rally. Its trading volume has also experienced a boost from the price increase. Compared to the previous trading day, the token’s daily trading volume has gone up by 60.20%. This indicates a rise in recent market activity.
What makes UNI a worthy contender?
According to Jack Yi, UNI still has a long way to go before it can catch up to BTC or ETH on the charts. As it is still around one-third away from its previous all-time high, it still has room to grow in the current cycle.
Though that may be the case, he also noted that the token is often regarded as “3x Ethereum leverage.” This means that when Ethereum performs well, the native token is able to outperform ETH in terms of value percentage.
For instance, at the moment ETH is up 5.19%. Meanwhile, UNI is currently up by 19.05%, nearly four-times Ethereum’s growth in the past 24 hours.
The reason why this is possible is because of the fact that Uniswap is the largest decentralized exchange built on the Ethereum network. It also has the deepest liquidity and highest trading volume in the ecosystem.
Therefore, if Ethereum thrives, Uniswap benefits directly due to increased on-chain trading, gas usage, and DeFi activity.
Another point that Yi brought up is the upcoming governance proposal in the protocol which will constitute a “fee switch.” The fee switch proposal would allow a portion of these fees to be redirected to UNI stakers or holders, potentially giving the token real yield or revenue sharing.
This move would further strengthen its tokenomics, potentially increasing demand, utility, and valuation. Yi also underlined the token’s strong consensus and performance among mainstream coins.
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