Uniswap introduces Unichain, sparking a 12% surge in UNI token

Decentralized exchange Uniswap‘s UNI token surged following the announcement of Unichain, the platform’s Ethereum layer-2 network.

Data from CryptoSlate shows that UNI rose over 12%, reaching $8.07—the highest its been in three months. This rise made UNI the top-performing digital asset in the market, which otherwise saw major tokens like Bitcoin lose about 2% of their value.

As the governance token of Uniswap, a leading decentralized exchange with over $2.4 trillion in trading volume, UNI is ranked among the top 25 digital assets by market capitalization.

Unichain

On Oct. 10, Uniswap Labs unveiled Unichain as a key solution in advancing Ethereums scaling roadmap.

Designed with DeFi users and protocols in mind, Unichain is built on the Optimism Superchain, an Ethereum layer-2 (L2) network utilizing Optimistic rollups.

Unichain promises one-second block times, delivering near-instant transaction speeds. This enhancement improves user experience, boosts market efficiency, and reduces losses from miner extractable value (MEV).

Furthermore, Unichain offers around a 95% reduction in transaction costs compared to Ethereums layer-1, with the potential for even lower fees in the future.

Unichain also plans to introduce a decentralized validation network, allowing nodes to verify blocks. This feature will add extra security and reduce the likelihood of conflicting or invalid blocks.

Unichain will support seamless multi-chain swaps, ensuring fast and secure cross-chain transactions. As part of the Optimism Superchain, it offers native interoperability while adhering to standards like ERC-7683 to make cross-chain swaps smoother.

Unichain will be MIT-licensed to encourage widespread adoption of the technology. The networks testnet is now live, with a mainnet launch expected soon.

Why L2s are importance

In the past year, the crypto industry has seen an influx of layer-2 solutions, with market experts arguing that this has caused network fragmentation.

However, Uniswap Labs‘ CEO Hayden Adams explained the importance of multiple L2 chains for scaling Ethereum, pointing out that the “internet of value can’t operate on a single chain.”

He stated:

“The internet of value can‘t run on a single chain. Ethereum’s rollup-centric roadmap aims to scale by having many L2 chains that seamlessly interface with each other. We are excited by this vision, and aim to accelerate it.”