The price of the Unifi protocol has turned parabolic as it appears to defy the ongoing gravity in the crypto industry. The coin reached a high of $7.08, which is almost 75% higher than this week’s low. This makes it the best performing coin in Binance.
What is UNFI and why is it growing?
Unifi Protocol is a relatively small blockchain project with a governance token value of over $40 million. It is a platform that owns several products such as UTrade, Eustec and Bridge.
uTrade is a decentralized exchange that enables people to swap tokens created by most blockchains. For example, you can easily swap a token like BTT into BNB and pay a small fee. Its fees are quite low compared to other DeFi platforms.
Meanwhile, Eustech is a platform that enables people to work by simply holding their coins. According to its platform, it has a net worth of over $6.2 million and an average APR of 14%. The most popular staking tokens on the platform are TRX and UNFI.
Unifi’s price has been defying gravity over the past few days as developers announce they’ll be upgrading it v2 soon, In the note he said that while he loved UP, the stage had reached a point of stagnation.
This upgrade is happening in phases. The first phase will be on UP token migration. This will then lead to a situation where the dormant UNFI tokens will join a liquidity pool and start earning returns. The third phase will have the potential to increase the redeem value of arbitrage trades, with these profits increasing the UP contract. The final stage will be on Bonded UP, which will supercharge the APR.
Unifi Protocol Price Prediction
The four-hour chart shows that the price of UNFI has declined as other digital tokens crashed this week. It went as low as $4.04, but its recovery has been quicker than other coins. This has seen it move above the 25-day moving average while the relative strength index (RSI) has moved above the neutral point.
Therefore, there is a possibility that the price of Unifi will continue to rise as the bulls target the key resistance level at $10. A decline below the $5 support would invalidate the bullish outlook.