UNFI price pumped more than 10x after the voting on upgrading the token and platform infrastructure was done. More than 140,000 tokens participated in this vote, to discuss the fate of $11 million locked in value.
So, how did UNFI land here? We would take a brief look.
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What is UNFI?
UNFI Protocol DAO is a group of decentralized, multi-chain smart contracts offering tools for the development of decentralized finance. The platform allows Ethereum-based products to connect to markets on other blockchains.
The first product launched by UNFI was uTrade, a token exchange platform built on the platform’s native smart contracts.
The platform also has a native token, UP. Which represents the revenue generated by the DAO and the entire DAO ecosystem. Depending on the blockchain, the tokenomics of this token can vary.
One can swap these UP tokens for UNFI tokens, based on the market prices. These UNFI tokens can then be staked, allowing users to earn rewards.
uLend, a lending platform built using Unifi’s smart contracts, is another popular product of this organization. UP token holders can receive a part of the platform’s revenue while having complete authority over the redemption value of the token. This borrowed value can be used for trading, or any other use the said person desires.
UNFI was founded by Sesameseed, a staking platform and its CEO Juliun Barbon. The decentralized organization is managed by an online community that decides the direction of the project.
Unifi’s Latest Upgrade
Unifi first launched its products in 2020 and has witnessed significant growth since. As of now, they have multiple products under their belt, such as uTrade- a trading platform, uStake- a stacking platform, uLend- a lending service, and uBridge- a cross-chain bridging solution.
This upgrade is primarily limited to the UP token, wherein the new token, UP v2, will use the funds from the reserves of the platform and reward UP holders with passive returns. Before the release of this news, there was roughly $11.5 million in value locked in the UNFI ecosystem. And the platform believed that this value is under-utilized, and an upgrade to counter that is a need of the hour.
As mentioned earlier, over 140,000 tokens participated in the vote, which took place across multiple blockchains. In total, these tokens represented $462,000 in token value. And unlike normally, where voting is restricted to no more than two blockchains, the UNFI voting took place on 6 different blockchains, making it a unique vote.
The announcement discussed more on how this step was taken to supplement their goals of building a sustainable blockchain economy. As mentioned in the release by WIRE, “Since Unifi Protocol has set up its operations in the style of a decentralized autonomous organization, UNFI holders will be entrusted with governing the total value that will accumulate within the ecosystem on 13 different blockchains to date.”
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Should You Buy UNFI?
When calculating from its month low against its month high, the UNFI price jumped by almost 17x this month. This June, the price of the token reached a low of $2.45 and touched a high of $41.8, following the news.
However, the rise lasted for a short while, due to short liquidations and quickly came down to hover around $9 a while. At the time of writing, the price of the token stands at $7.15. Although the price saw a steep decline, it’s still up by more than 100% when compared to the month’s low.
UNFI is Listed on Binance for Trading
UNFI is currently a low-risk investment, although some indicators may indicate otherwise owing to the recent spike.
The price is expected to range from $6.5 to $9 as of now. In case of a bullish rise, however, the price can potentially break its resistance levels of $9.02 and consequently $12.20. The likelihood of landing at the latter price will be much higher if the token manages to break the initial resistance level.
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Although the fundamentals are strong, the token is after all a low-cap crypto. Meaning it can go north, or south pretty much instantly depending on any sudden trading movement. As of now, however, traders should be on the lookout for the price not to fall beyond the $4.06 resistance level. In case it does, they can make necessary changes to their trading strategies.
The coin currently has a market cap of $31 million and is trading at $7.15 on Coinmarketcap.
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