- UNI’s price surged after the protocol disclosed a plan to introduce the ERC-7683 standard.
- Open Interest hit a monthly high, activity spiked, while the token could rise to $12.
Uniswap [UNI] broke out, rose by 18.98% and hit $9.30 in an unexpected move within the last 24 hours.
For many participants, the surge could be linked to the news that the odds for the U.S. SEC to approve Ethereum [ETH] spot ETFs had increased. Because of this, ETH’s price jumped.
While that played a part, that was not the only reason. According to AMBCrypto’s investigation, a major development and other happenings on-chain were vital to UNI’s breakout.
The Labs come with a new standard
On the 20th of May, Uniswap Labs disclosed that it was introducing a new token standard called the ERC-7683. For context, ERC stands for Ethereum Request for Comment.
It is a standard for creating and issuing smart contracts on the Ethereum blockchain.
According to Uniswap Labs, the standard, if deployed, would solve fragmentation on the network and improve cross-chain interaction. The proposal read,
“By implementing a standard, cross-chain intents systems can interoperate and share infrastructure such as order dissemination services and filler networks.”
Moments after the announcement, UNI’s Open Interest (OI) increased. At press time, the OI was $64.90 million. This was a value that the metric has not reached for over a month.
Source: Santiment
Increasing OI indicates that more money is coming into the market. On the other hand, a decreasing OI is a sign of decreasing net positions with liquidity moving out.
Activity rises, sets UNI for another price boost
When put side by side with the price, the OI was a sign that buyers in the market were aggressive. If the value continues to rise, UNI’s price might do the same.
Furthermore, the prediction that the token could rally higher than its March high could come to pass. However, there were other changes on the network that propelled the hike apart from the OI.
One of them was the 24-hour active addresses. Whenever active addresses increase, it means that a large number of users are interacting with the blockchain.
If the metric falls, it means that the number of unique addresses visiting the network is decreasing. For UNI, on-chain data from Santiment showed that active addresses rose to a weekly high of 1926
This sudden surge indicates rising confidence among holders. Most times, this leads to increased buying activity and was surely one of the reasons UNI’s price moved northward.
Source: Santiment
Realistic or not, here’s UNI’s market cap in ETH terms
In addition, AMBCrypto got confirmation of the increased interest from the volume. At press time, UNI’s volume was $346.65 million.
Should this figure increase while the token’s price rises, then UNI could hit a higher value. Considering the momentum, the price of the cryptocurrency might hit between $12 and $15 within a short period.