Cryptocurrency

Uniswap vs Avalanche: Comparative Analysis of Top DeFi Tokens (UNI vs AVAX)

Uniswap vs AVAX

What is Uniswap?

Uniswap is a popular decentralized exchange that offers peer-to-peer trading of digital assets, using smart contracts to function as an Automated Market Maker. The platform is permissionless, meaning no intermediaries are involved while carrying out any transactions. The platform operates on the Ethereum blockchain, which has recently transited from Proof-of-work to a Proof-of-Stake consensus mechanism. 

The users on Uniswap can create liquidity pools to offer liquidity for a particular digital asset and also swap with a variety of digital assets. They can participate in the decentralized exchange in several ways, like creating new markets; swapping assets through existing markets, providing liquidity and earning rewards; and participating in Uniswap governance. 

The platform is powered by its native token, UNI, which is an ERC-20 token. The users earn rewards in the form of UNI, and the UNI holders take part in the governance of the protocol. UNI is among the top DeFi tokens by market capitalization. 

Latest News on Uniswap Blockchain

  • The Uniswap platform recently released a Widget that intends to make Web3 easier for the developers

  • Just before the Ethereum Merge, the Uniswap platform announced that it will completely back the transitions and will offer no support for the EthereumPoW forks

What is Avalanche?

Avalanche is a thriving blockchain that intends to offer more scalability with quick finality through its Avalanche Consensus protocol. It is an open-source, decentralized platform that aims to be fast, affordable, and secure. The platform uses smart contracts, which support both decentralized applications (dApps) and autonomous blockchains. 

The working of the platform is a little complicated, but to be precise, it consists of 3 primary aspects, its consensus mechanism, incorporation of subnetworks, and the use of multiple built-in blockchains. The consensus mechanism is built on PoS but also utilizes Proof-of-Uptime and Proof-of-Correctness. Apart from this, Avalanche is built using 3 different blockchains called the Exchange Chain(X-Chain), the Contract Chain (C-Chain) and the Platform Chain (P-Chain) to accomplish different functions within the ecosystem. 

The platform is powered by its native token, AVAX, which is used to distribute the rewards, participate in the governance, validate the transactions on the network and also pay fees. 

Latest News on Avalanche Blockchain

  • Avalanche Labs recently announced its partnership with Chainlink to help AVAX grow in the NFT, GameFI & DeFi sectors.

  • A multi-chain Layer 2 scaling project, Boba has expanded to Avalanche which will help to reach the scalability demands for Avalanche.

Uniswap vs Avalanche: Comparative Analysis of Top DeFi Tokens 

Uniswap  Avalanche
Launch Date November, 2018, September 2020
Founder Hayden Adams Emin Gun Sirer
Blockchain Protocol Uniswap Blockchain Avalanche Blockchain
Native Token   UNI AVAX
Market Cap $4,91 billion $5.16 billion
Token Type ERC-20  ERC-20/BEP-20
Circulating Supply 762.20 million 295.93 million
Max Supply 1 billion 720 million
Consensus Method Proof-of-Stake Avalanche Consensus

Technical Analysis: Uniswap Price vs Avalanche Price

Source: Tradingview

  • Uniswap & Avalanche price has been trading within a pre-defined range with similar price actions until the UNI price decoupled and raised high.
  • The UNI/USDT price in the last week, rebound firmly from the lows and currently trading within a rising parallel channel aiming to regain the value above $10.
  • While the AVAX/USDT price dropped hard from nearly the same highs, but failed to rebound and continues to trade within a symmetrical triangle, ranging towards the ape.
  • The UNI/USDT price dropped from highs at +12.63% and dropped hard to form lows at -12.42% and currently trading at +6.79%.
  • Conversely, the AVAX/USDT price dropped from the highs at +7.91% to -17.25% & trading at -13.03% at the moment.

Additional Read: Avax Technical Analysis

Uniswap vs Avax Price Prediction 2022

Uniswap Price Prediction 2022

After a gigantic parabola recovery to reach levels close to $10, the price failed to surpass the levels and has been plunging hard since then. Despite a minor recovery, the bulls failed to gain enough momentum to regain the lost levels. Hence, with a decent close for Q3, the UNI price is expected to ignite a significant upswing in the coming months. 

The last quarter, Q4, is historically considered the greener quarter & hence one can expect a notable upswing in the coming days. The UNI price may surge above $7.3 to close the October trade at around $7.5. Maintaining a significant upswing the token could trade around $8.5 in November & Uniswap Price Prediction of the year 2022 end is around $9.5 to $10.5.

Read more at: Uniswap Price Prediction

Avalanche(AVAX) Price Prediction 2022

The Avalanche AVAX price has been heavily consolidated ever since the market collapsed in May 2022. The price is constantly failing to breach through the upper resistance while it continues to trade along the lower support. The volatility has been chopped off to a large extent and hence the price could remain within an accumulated range for a long time. 

After a bearish close of Q3 trade, the price may ignite with a decent recovery since the beginning of Q4. With a slight ease in the market sentiments, the AVAX price may rebound from the lower support and climb higher. By the end of October, the prices are expected to trade at around $23.45 to $25. By November, the AVAX price prediction is around $30, and by the end of the yearly trade, the AVAX price may trade around $32 to $35. 

Read more at: AVAX Price Prediction

Uniswap vs AVAX: The Pros

Uniswap Pros Avalanche Pros
Enables decentralized swapping of many digital assets Fast transaction processing time
The trades are based on smart contracts that make the trade more cost-effective The participation is incentivized with rewards
The users here can earn UNI by agreeing to not sell or trade their holdings It can support many blockchains-based projects
Anyone can participate in the governance  It uses the amalgamation of the consensus to accomplish various tasks

Uniswap vs Avalanche: The Cons

Uniswap Cons Avalanche Cons
It supports only Ethereum compatible cryptos Huge competition from other platforms like Ethereum, Polkadot, etc
User is required to hold ETH to carry out any activity on Uniswap The validators are required to stake 2000AVAX tokens
Risk of impermanent loss The malicious or careless validators are never penalized 
Doesn’t accept fiat currency and no KYC It is expensive to buy for small investors

Should You Buy Avalanche or Uniswap?

The crypto markets have evolved, displaying their tendency to withstand tremendous bearish pressures. Therefore, the prices are believed to revive with a firm upswing in the coming days. Uniswap vs AVAX, both crypto tokens have been trading sideways in recent times and are expected to discard the bearish trend at the earliest. Hence, both carry the potential to outperform traditional assets in the coming days. 

Is Uniswap a good investment or Avax?

Uniswap vs Avalanche: Both crypto tokens have displayed a sustained rally since the beginning of 2022. Despite multiple external factors that tried to drag the price down, both the assets sustained along the crucial support zone and gearing up to pull a significant leg up soon. Therefore, after a bearish and consolidated Q3, Q4 is believed to be blooming. 

Hence, it is important to undertake research on the token to know its history and the upcoming events before jumping into a deal.

How to Invest in Uniswap and AVAX token?

Investing in Uniswap, Avalanche, or any of your desired tokens is extremely easy and safe. All you need to do is download the CoinDCX, crypto app on your smartphone and enter your details to register. You also need to complete the KYC and wait for verification. 

Once your profile id is verified, fund your wallet any buy UNI or AVAX crypto .

Note: Both AVAX & UNI are one of top defi tokens by market capitalisation as of 4th October, 2022

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