Uniswap, a popular decentralized exchange, is striving to reduce transaction fees for users.
The first stage of the DEX’s debut on Optimistic Ethereum has been announced.
The DeFi protocol justified the integration by citing the demand for low-cost, high-speed trading on Ethereum.
Uniswap, a decentralized finance protocol, has announced the Alpha release of version 3 on the Ethereum layer two scaling solution.
Optimistic Ethereum is a layer two scaling solution that uses optimistic rollups on the blockchain to achieve lower costs, latency, and throughput.
For its v3 debut in May, Uniswap used the L1 Ethereum mainnet. The DEX has now announced an Alpha launch for an L2 deployment on Optimism.
Uniswap estimates that Optimistic Ethereum will have a throughput of 0.6 transactions per second at launch. The protocol claims that after the introduction, users will save up to ten times their transaction costs.
While the Optimistic Ethereum infrastructure is still being tested and refined, the decentralized exchange anticipates transaction speeds to improve in the coming weeks and months. In light of rising demand, the scaling integration intends to enable low-cost and high-speed trading on the DEX.
This move could be game-changing for Uniswap, as the exchange’s transactions are done directly on the Ethereum blockchain, which uses a lot of gas. According to data from the ETH Gas Station, the DEX is presently the blockchain’s greatest gas consumer.
The launch is still an alpha product, according to Uniswap, and Optimistic Ethereum is a “complicated Layer 2 scaling solution still in need of rigorous battle testing.”
On the 12-hour chart, the Uniswap price has printed five consecutive red candles, marking the third consecutive day of fall. For the time being, investors should pay attention to the 50-hour Simple Moving Average (SMA), which UNI has lost as support and is now acting as resistance.
Uniswap is currently testing $17.35 as support, which is the 78.6 percent Fibonacci retracement level. This level serves as a vital line of defense for the DeFi token, but more selling pressure might drive UNI back into the $14.27 to $15.61 demand zone.
12-hour chart of the UNI/USDT
However, if Uniswap price manages to reclaim the 50-hour SMA, it may allow the bulls to reclaim control and reduce negative momentum.
With more buying pressure, Uniswap pricing might reach the 61.8 percent Fibonacci retracement level at $20.05 before breaking over the falling resistance level that has been in place for the past two months./n
