This year, Uniswap wants to make the DeFi experience for users much smoother and more practical.

This is an essential step, particularly in the organization’s quest to promote adoption.

The most recent version shows intriguing upgrades geared toward making the platform run more smoothly.

Recently, Uniswap disclosed in its most recent blog post that it has just launched two new smart contracts.

They include Permit2, which will make it easier and more affordable to share and manage token approvals across a variety of applications.

The other smart contract, called Universal Router, enables the fusion of ERC20 and NFT exchanging.

In other words, the two smart contracts place a strong emphasis on introducing the highest level of consumer cost-efficiency.

Users may save money on gas costs as a result of these rollouts.

This measure might encourage more users to sign up for Uniswap or increase the number of network transactions.

A closer examination of Uniswap’s most recent results might help to clarify why this action is required.

Despite the recent market frenzy, uniswap volume and transactions are still minimal.

This goes against the notion that a market turn followed by a significant surge in demand would result in higher volumes and more transactions on Uniswap.

Due to this, Uniswap may need to make certain adjustments in order to increase user interest in the DeFi platform.

The overall number of addresses utilizing the platform in the previous three months has grown steadily, according to an analysis of addresses on Uniswap.

Even in the first week of January, the number of new addresses remained low.

There could be a number of reasons why there isn’t a flood of new addresses.

But because of how this directly impacts Uniswap’s capacity for long-term expansion, new approaches are required.

The demand for the native token UNI can also be impacted.

The first two weeks of January saw a noticeable increase in exchange activity, according to an analysis of UNI’s currency movements.

Exchange inflows, however, have dominated the market, particularly over the past three days.

According to the observation above, a lot of UNI holders are making money.

This can be interpreted as evidence that there is little incentive to retain UNI.

Additionally, it is consistent with UNI’s price movement, which has so far retraced up to 13% from its most recent monthly high.

At the time of writing, the price of UNI was $6.02.

In the event of a prolonged decline, it might hit the next price floor at $5.74.

This is because it will interact with the 50-day MA, which might serve as a purchase zone psychologically, at that level.

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