Uniswap Price Soars 13% as Team Unveils Ethereum Layer 2 Testnet

Uniswap’s native token (UNI) surged 13% following the announcement of Unichain, a new Layer 2 blockchain on Ethereum. The blockchain is designed to enhance transaction speed and efficiency on the platform’s decentralized exchange. Uniswap Labs, the company behind the popular decentralized finance (DeFi) protocol, revealed the launch of Unichain on Thursday, bagging major appreciation from the community.

Uniswap Launches Unichain

Ethereum Layer 2 network, Unichain, is expected to drastically reduce transaction times. Uniswap Labs stated that the blockchain will “initially have one-second block times, and will later be optimized to meet 200-250 milliseconds block times.” The company added that this will create a “near-instant transaction experience for the user.”

Moreover, the reduced latency is intended to address the long-standing issue of congestion on Ethereum’s main network, where Uniswap’s decentralized exchange currently operates. Today, the testnet for Unichain is scheduled to go live.

Introducing @unichain — a new L2 designed for DeFi ✨

Fast blocks (250ms), cross-chain interoperability, and a decentralized validator network

Built to be the home for liquidity across chains pic.twitter.com/lqfJh6Ltio

— Uniswap Labs 🦄 (@Uniswap) October 10, 2024

For further context, Layer 2 blockchains, including services like Arbitrum and Coinbase’s Base, have gained traction over the past few years as solutions to Ethereum’s scalability limitations. These L2s compile transactions and record them as a batch onto Ethereum’s main blockchain, minimizing fees and mitigating delays.

Thus, the decision by Uniswap to launch an L2 of its own is noteworthy as it is the most widely used tool in DeFi, which relies on composable, modular systems to carry out trades without intermediaries. Hayden Adams, the CEO of Uniswap, took to X (formerly Twitter) to highlight the significance of this launch, calling Unichain a “labor of love based on 6 years of designing and building in the DeFi space.”

UNI Price Surges

Adams expressed optimism about Unichain’s potential to become “the best home for DeFi,” emphasizing that the project is built on Ethereum’s Superchain framework. According to Adams, Unichain will offer features like “a fast, provable block builder” that reduces miner extractable value (MEV) losses and enforces fair transaction ordering. =

He also noted the importance of creating a “decentralized network of validators” to enhance security. Unichain’s focus on user experience and interoperability across different blockchains is seen as a crucial part of its development. “The internet of value can’t run on a single chain,” Adams said. This aligns Uniswap with Ethereum’s rollup-centric roadmap, which envisions a future where multiple L2 chains work seamlessly together.

He further added that Unichain would be “MIT licensed,” encouraging other projects to adopt its technology. The launch of Unichain is expected to accelerate Uniswap’s growth and enhance its position as a leader in DeFi.

At press time, the Uniswap price soared 12.46% to $8.05 on Thursday. Moreover, it even touched the high of $8.17 during the day. Also, analysts remain optimistic on UNI price outlook owing to the latest L2 launch.

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