The cryptocurrency space has spent the entire year struggling as many market experts say that the market is now in a bearish phase and could be worse than what was seen in the bear market of 2020 and 2018-2019 period. Many cryptocurrencies have fallen from regions seen as all-time highs over a year ago, to trade at price points not seen since the recovery from the COVID-19 pandemic.
The month of May and the beginning of June has been bearish for the cryptocurrency space with major cryptocurrencies falling below major critical support zones. The cryptocurrency market capitalization currently stands at $1.19 trillion, currently struggling to maintain its trillion-dollar status as Bitcoin ranges between $28,000 and $32,000.
Although the market has been struggling, UNFI, the native token of the Unifi Protocol DAO has been able to post over 200% gains in the last 24 hours. In fact, it hit a high of $39.25 for the first time since March 2021, but it quickly declined sharply to currently trade at $10.83.
Unifi Protocol DAO
Unifi Protocol DAO touts to be a revolutionary approach to decentralized finance (DeFi). The project was launched in 2020 and the network aims to bring modern technology to the financial world. The platform offers users the ability to develop DeFi solutions for their enterprise by employing the innate security and decentralization features of blockchain technology and the automation of smart contracts.
This project combines the power of several blockchains and relies on the foundation of Ethereum DApp and DeFi development. However, Unifi makes it its mission to introduce interoperability to the world of DeFi by allowing users access to multiple blockchains and an extremely versatile UNFI token.
The protocol aims to give traders access to simple, fast, and efficient cross-chain activity. Unifi claims to be a comprehensive DeFi solution for enterprises of all sizes. The platform also has a rigid rewards program, allowing investors and traders to gain staking value for holding UNFI token, the native token of the protocol.
In the official white paper, the founding team details an impressive development path for the project. Asides this, Unifi Protocol DAO has attracted investments from prominent names in the cryptocurrency sector, including Binance, HBTC and Chain Capital.
What you should know
- The total supply of UNFI tokens is 10,000,000. Currently, there are about 4.3 million UNFI tokens in active circulation on the market as of the time of this writing.
- Over half of the total UNFI token supply is dedicated to a Liquidity Providers and Ecosystem Development (LPED) fund.
- Of the remaining tokens, 15% were distributed as rewards for the founding team and other vital developers. Another 12% were distributed among investors during a private sale.
- More than 10% of UNFI tokens were set aside for Ecosystem Support, while another 6.5% were released during a Seed Sale for interested investors. Lastly, 5% of the total supply was dedicated to Pool Mining activities, designed to support public token allocation.
- Unifi Protocol DAO is a combination of blockchains and smart contracts secured by a proof-of-stake (PoS) consensus mechanism. PoS relies on the fact that tokens can be staked to ensure the validity of nodes and secure the mining process. This means that nodes are selected based on their stake in the given token.
- The rally in the token can be traced back to announcement that the protocol is set to launch a massive upgrade to their sustainable and decentralized finance (DeFi) ecosystem.
- With roughly $11.5M locked in the Unifi Protocol ecosystem, Unifi stated in their infrastructure improvement proposal that much of that value is currently being under-utilized.
- The upgrade will see major changes rolled out to Unifi Protocol’s rewards token, $UP. This over-collateralized algorithmic token has been fully backed by an increasing reserve of cryptocurrency coins on each blockchain it is on since originally conceived in 2018.
- The new and improved UP will utilize the funds in this rising reserve to earn all UP holder’s passive returns by routing staking rewards into the backed value of the token, while boosting the efficiency of all associated Unifi products.
- The pivotal upgrade was approved in a landmark DAO vote that took place across multiple blockchains with holders of $UNFI token, the native and also the governance token of the Unifi Protocol ecosystem.
- Over 140,000 tokens participated, representing a value of $462,000. The Unifi Protocol multichain DAO referendum was unique in its ability to allow UNFI token holders on 6 different blockchains to participate, whereas typically voting occurs on only one or two blockchains.
- Unifi’s blockchain since its launch, has since expanded to include more services such as trading (uTrade), staking (uStake) and recently the addition of a cross-chain bridging solution (uBridge).
- There has been a spike in the volume of transaction of UNFI token. The volume has increased by 1,403% to $1.48 billion. Its market capitalization has also grown by 233.95% to currently stand at $47 million as of the time of this writing. Interestingly, the token traded its all-time low of $1.34, almost a month ago and because of interest in the token, the token has rallied significantly as 233% in the last seven days and 179% in the last 30 days.