Top crypto fund manager explains the bull case for Uniswap

Uniswap is another DeFi coin that has faced a steep drawdown.

A prominent crypto asset fund manager, who left Wall Street to pursue Bitcoin, recently explained that UNI remains cheap on a macro basis.

Top Ethereum coin Uniswap remains cheap: Arca CIO. According to the CIO of Arca, Jeff Dorman, Uniswap's UNI still has a booming bull case despite the strong decline in DeFi, from the space's offered yields to trading volume.

"Uniswap is the clear market leader in DEX trading. Like"ETH vs smart contract protocols", there's not even a close second to $UNI in DEX Trading.

"Expected annual earnings for Uniswap: $380mm."

For comparison, the S&P 500 has an aggregate dividend yield of 1.7 percent and a 25 times forward price-to-earnings ratio, numbers far more expensive than Uniswap is in its current state.

A thread on Uniswap $UNI. The rationale for owning $ETH as an investment is that Ethereum is a clear market leader, w/ strong growth/usage, & tangible fee generation even though none of this value accrues to ETH token holders yet.

"Uniswap network fees are still pretty attractive and volumes are still comparable to large centralized exchanges, yet UNI price continues to grind lower. There will be some good value hunting opps in DeFi tokens over the next few months as all eyes turn back to bitcoin."

One reason why Uniswap hasn't absorbed more volume from centralized exchanges is due to certain user experience setbacks, such as the fifteen-second trading time and some concerns about slippage.

This is likely to be solved with the introduction of Uniswap v3, which is expected to be integrated into second-layer scaling solutions such as Optimism's Optimistic Ethereum.