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Uniswap’s UNI has grown in favor of investors as the token continues its upward trajectory in the face of critical on-chain developments. According to CoinGecko, the token is up 30% since last month, keeping the token in the green zone. With a renewed uptrend in the market, UNI may be on track to make some gains in the short term.
Uniswap recently announced a development that may completely enhance the user experience of using the platform. Investors are excited as the platform continues to find innovative ways to improve user engagement.
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Gas Mining: A Leap for Uniswap UX?
Via the protocol’s CTO, Matt Riceand Staff Software Engineer at Uniswap, Mark Toda newly discussion About ERC-7702 which, if passed, would introduce a new type of transaction known as externally owned accounts (EOAs). In general, ERC-7702 It will implement gas extraction technology, a feature that will improve the user experience and save users a lot of money in the process.
ERC-7702 The next big leap for Uniswap 🦄@Mark Toda from @uniswap Conversations with @mrice32 About how gas extraction could streamline decentralized finance for millions. Is this the user experience revolution we’ve been waiting for? pic.twitter.com/UVR3Mid5HQ
– via (@AcrossProtocol) September 24, 2024
According to Mark Toda, the biggest obstacle to successfully implementing gas mining is allowing users to address without gas on-chain.
“…Think about it now, if you’re trying to send some tokens on a random chain and you’re trying to switch from there or do whatever there, then now you need a native token to pay for gas… Or,” Toda said when asked about the scenario in which In which a user exchanges tokens with no chains available on the platform: “Allowing a contract of some sort to take your tokens.”
Quite simply, the most notable feature of ERC-7702 is regarding gas custody which helps users pay gas fees differently from their chain of origin. This feature, once ERC-7702 is implemented, will greatly improve interoperability, enhancing the user experience.
At the time of writing, ERC-7702 is still in the draft stage which means that new on-chain features that are distinct between Toda and Rice are still subject to review. However, it represents a good future for the Uniswap community.
UNI: Investors should monitor these levels
As of the time of writing, UNI has continued to make gains against the bears in the medium term which puts the token at the gates of the $7,518 resistance level. This crucial resistance level may continue to struggle in the coming days as the market reaches its peak after days of sustained upward movement.
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With this in mind, investors should monitor the movement of the token in the coming hours and days as this may determine the path of the token. If UNI breaks this crucial resistance level, it opens the door towards $9,012 in the medium term.
However, if $7,518 remains unbeaten or the bulls break for a short period before pulling back, it could trigger a downward move by the bears targeting $5,899 in the medium term.
Featured image from Pexels, chart from TradingView