As a project that only emerged in 2018, #Uniswap faced similar criticism and competition to Ethereum in 2018.

🔴In the past three years, it has experienced several crises,：

1.including SushiSwap attracting liquidity from the Curve community,

2.competing with centralized exchanges

3.it also faces a group of innovative new competitors, such as Joe, MAV, and others.

4.In the future, it will also face competition from wallet entrances, such as MetaMask.

By the end of 2020, #SushiSwap had taken more than half of Uniswap's liquidity, and its highest daily trading volume even exceeded two-thirds of Uniswap's. In 2022, Curve's bribery campaign caused the price of CRV to rise far more than UNI.

Despite continuous competition over the past two years, Uniswap has been very fortunate to prove its strength and good reputation through practical actions, holding onto market share and continuing to develop.

In the bear market of the past two years, Uniswap's founding team has left a deep impression on me.

I knew early on that the original idea for the Uniswap project came from Ethereum founder Vitalik Buterin (X * Y = K), so I was initially very concerned that Uniswap was only borrowing Vitalik's fame.

However, with the successive releases of V3 and V4, I have full confidence in Uniswap's team. They have proven themselves to have enough creativity and original intention.

In the long run, the community and project team are the most important factors for the success of a project, while other external conditions can be improved, the original intention and beliefs of the team are difficult to change.

💪The growth potential of UNI

The co-op mode of V4 and the release of Hooks are very important for Uniswap. Starting with V4, Uniswap will become more like an ecosystem, attracting more and more developers to build around it rather than the founding team acting alone.

In the past, when developers found many flaws in Uniswap, they could only complain about it or develop new projects to compete with it. But starting with V4, if you think Uniswap has flaws, you can improve it yourself, and Uniswap will give you enough freedom to earn income on its liquidity pool.

  • Hooks are an important concept introduced in Uniswap V4 for interactive plugins that customize liquidity pools, exchanges, fees, and liquidity provider (LP) positions.

  • Through the Hooks mechanism, developers can perform specific operations at critical moments in the liquidity pool's lifecycle, such as before/after the exchange or before/after the LP position changes.

  • The emergence of V4 may rebuild the underlying foundation of DeFi and allow more developers to develop various multi-functional ecosystems on the Uniswap platform.

Currently, Uniswap has been occupying 50% to 60% of the on-chain DEX market share. Uniswap has also started to explore new businesses, such as NFT trading. Although progress has not been smooth, it has made me see their vision. Their goal is not only to become a token exchange, but also to include businesses related to trading and improve market trading efficiency in their plans.

Therefore, I believe that in the future, Uniswap will not only enter the NFT field, but also involve trading-related businesses such as derivatives.