Unifi Protocol (UNFI) soared 1,350% in less than a week; here’s why – BeinCrypto UK

In this bear market context, it is difficult to find a project that manages to perform well in the crypto sphere. In his perpetual hunt for nuggets, Be[In]Crypto has listed a cryptocurrency that has performed stellarly this week.

This crypto is called Unifi Protocol, and recorded a performance of 1350% only a few days. We will look into the reasons for this meteoric rise.

Unifi Protocol: branding DeFi

Unifi Protocol DAO is a crypto sphere project that seeks to revolutionize the decentralized finance sector with its innovative solutions. Launched in 2020, Unifi is a decentralized structure that wants to allow anyone to develop their own DeFi project. Indeed, whether it is a decentralized exchange, a loan and credit platform, or even decentralized insurance systems, users can develop them on Unifi Protocol.

However, the real added value of cryptocurrency is its bridge solution to DeFi projects. Indeed, thanks to its speed bridge, Unifi Protocol makes it possible to connect the DeFi projects of the Ethereum ecosystem to other projects developed on other blockchains. It should be noted that Unifi has good staking programs allowing investors to receive an attractive return on the protocol token.

Speaking of the Unifi Protocol DAO token, it is called “UNFI” and has an overall supply capped at 10,000,000 units. According to data collected on CoinMarketCap, there are over 4.35 million UNFI tokens in circulation.

At the time of its ICO, it was planned to allocate more than half of UNFI’s supply to an LPED (Liquidity Providers and Ecosystem Development) fund. It is also known that 15% of the tokens are allocated to project managers and developers.

The update that took Unifi to the top

Unifi Protocol’s price rise was fueled by the project’s June 7 update. They were more than 140,000 investors on nearly six blockchains to approve this update, which aims to build a sustainable and decentralized future on Unifi Protocol.

Regarding the technical details of this “upgrade”, the project managers have declared in a press release on Business Wire:

The upgrade will be marked by major changes rolled out to Unifi Protocol’s rewards token, $UP. This over-collateralized algorithmic token has been fully backed by a growing reserve of cryptocurrency coins on every blockchain it sits on since its initial conception in 2018. The new and improved UP will use funds from this growing reserve to earn all UP holders from passive returns by funneling staking rewards into the guaranteed token value, while boosting the efficiency of all associated Unifi products….

After the update news, the price of UNFI rose dramatically. Between June 6 and June 8, the value of the cryptocurrency increased by 1,353% from $3.28 to $44.4. Nevertheless, Unifi Protocol’s subsequent downfall was just as brutal. Indeed, after its very good performance, the price of the token plunged towards $7.5. At the time of writing, the price of UNFI is showing a decline of 7.14% to $7.65. So, would cryptocurrency have given us a very nice “pump and dump”? Does this mean that Unifi Protocol DAO is a scam?

What future for the project?

The future of the project is certainly linked to the future of the crypto market. And unfortunately, the prospects for development or growth will be very difficult during this year. Many experts are counting on a deadweight loss for the year 2022. So, despite its recent update, Unifi Protocol will potentially struggle to develop during the year.

Nevertheless, the project remains very promising. It will certainly play an important role in DeFi over the next few years, especially for its chain interoperability solution. In other words, Unifi Protocol is the Polygon of decentralized finance. As a positive example, it is probably not trivial that Binance’s investment funds, Chain Capital HBTC want to invest in the project.

Disclaimer

All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on information found on our website is entirely at their own risk.

We would like to give thanks to the writer of this short article for this awesome content

Unifi Protocol (UNFI) soared 1,350% in less than a week; here’s why – BeinCrypto UK


Our social media profiles here , as well as additional related pages here.https://metfabtech.com/related-pages/