Uniswap Nears US$3B Volume Amid Regulatory Alert

Uniswap is nearing US$3 billion trading volume amid regulatory alert

Uniswap's April is shaping up to be a banner month for the decentralized exchange. On April 5, the platform crossed the US$2 trillion trading volume mark, cementing its position as a significant DEX player as competition intensifies across networks, especially on the Solana network, where it does not operate.

On April 10th, the Securities and Exchange Commission (SEC) sent Wells notices to the Uniswap platform. This notice raised rumors about the start of a war with DeFi. There is nothing new about the interest of the SEC in crypto, as the SEC targeted established titans in the past.

Uniswap stands out in a few ways. Many crypto platforms pulled out of the U.S. market due to concerns about strict regulation. Some DeFi platform frontend services block U.S. users (although some people get around this with a VPN). Uniswap doesn't do this. Frontends are usually one of the easiest ways to use DeFi protocols, but they aren't the only option.

Uniswap Labs runs a website that provides users with access to the Uniswap ecosystem, a collection of smart contract technologies. Given its dominant position in the market, Uniswap is ripe for the SEC to take action.

The crypto community has voiced its support for the fight, with many commenting on its significance. Hayden Adams, the founder of Uniswap, wrote on X, "I'm not surprised. I'm just angry, frustrated, and prepared to fight."

The fight is far from over, however. Coinbase was given its Wells notice back in March 2023, but even after more than a year, little has been heard from the company.

Price Analysis

UNI (Uniswap's governance token)  reacted strongly to the news, dropping from more than US$11 just prior to the announcement to under US$9 post-announcement. UNI had rallied at the end of February following the announcement of a proposal to incentivize token holders.

However, after the weekend market collapse, UNI declined further.

Uniswap's daily trading volume also increased over the weekend, and it's still hovering around US$3 billion. The fees charged by the front end of the exchange also rose at the end of the week, but it's not because of an increase in usage. 

The current price of Uniswap is US$7.258. Its support and resistance levels are US$7.025 and US$7.940, respectively. MACD indicates a building bullish momentum on 30 min chart..