Uniswap’s UNI has grown in favor with investors as the token continues its upward trajectory in the face of crucial on-chain developments. According to CoinGecko, the token is up 30% since last month, keeping the token in the green zone. With renewed market optimism, UNI could be on track to make some near-term gains.
Uniswap recently announced a development that could completely improve the user experience when using the platform. Investors are excited as the platform continues to find innovative ways to improve user engagement.
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Gas Abstraction: A Leap For Uniswap UX?
Director of Technology at Across Protocol, Mate riceand the software engineer on the Uniswap team, Marco Toda recently discussed on ERC-7702 which, if approved, would introduce a new type of transaction known as externally owned accounts (EOAs). In general, ERC-7702 will implement gas abstraction, a feature that would improve the user experience and save a lot of money in the process.
ERC-7702 Uniswap’s Next Big Leap 🦄@MarkToda of @uniswap talk with @mrice32 on how gas capture could simplify DeFi for millions. Is this the user experience revolution we’ve been waiting for? pic.twitter.com/UVR3Mid5HQ
– Through (@AcrossProtocol) September 24, 2024
According to Mark Toda, the biggest obstacle for gas capture to be successfully implemented is authorizing the address of a user without gas on the network.
“…Think about it now, if you’re trying to send some tokens on some random chain and you’re trying to swap from there or do anything there, now you need to have a native token to pay for the gas…or authorize some kind of contract to receive your tokens,” said Toda when asked about a scenario where a user exchanges off-chain tokens available on the platform.
Simply put, the most notable feature of ERC-7702 is related to gas sponsorship, which helps users pay gas fees distinct from their source chain. This feature, once ERC-7702 is implemented, will greatly improve cross-interoperability, improving the user experience.
At the time of writing, ERC-7702 is still in the draft phase, which means that the new network items presented between Toda and Rice are still subject to review. However, it presents a good future for the Uniswap community.
UNI: Investors Should Watch These Levels
At the time of writing, UNI has continued to advance against the bears in the medium term, which puts the token at the gates of the $7,518 resistance level. This crucial resistance level may continue to hold in the coming days as the market peaks after days of continued upward movement.
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With this in mind, investors should monitor the token’s movement in the coming hours and days, as this could determine the token’s trajectory. If UNI breaks this crucial resistance level, it will open the door to $9.012 in the medium term.
However, if $7.518 remains unbeaten or the bulls advance for a short period before pulling back, it could trigger a downward move by the bears targeting $5.899 in the medium term.
Featured image from Pexels, chart from TradingView