Uniswap v4 has been officially launched, promising enhanced features but facing challenges with the UNI token price. The timing of this launch raises questions as competitors like Raydium gain traction.

Uniswap v4 marks the arrival of significant functionality, allowing for greater customization on-chain, which Uniswap Labs describes as a critical moment for decentralized finance (DeFi).

“For the first time ever, you can LP using hooks on the Uniswap web app. Unlocking unlimited customization onchain 👀” — Uniswap Labs 🦄 (@Uniswap) February 2, 2025

Despite the launch, UNI’s price remains under pressure, suggesting that market sentiment is lagging. Furthermore, Raydium has recently overtaken Uniswap in total value locked (TVL), presenting a growing threat to its market share.

Summary of Features Introduced in Uniswap v4:

• Hooks: Custom plugins that adjust trading logic.
• Enhanced user experience with reduced gas fees by up to 99%.
• Improved transaction speeds and protections against common trading attacks.

The launch does not seem to have positively impacted UNI prices as sellers remain dominant in the market. A breakthrough above $11 might signal a recovery; otherwise, a fall below $8.5 could lead to further declines.

Looking Ahead

With the increasing competition from platforms like Raydium and ongoing selling pressure on UNI, Uniswap’s position in the market will require strategic adaptations to maintain its influence in the DeFi landscape.