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Uniswap’s UNI has grown in favor of investors as the token continues its upward trend in the face of significant on-chain developments. According to CoinGecko, the token is up 30% since last month, keeping the token in the green. With renewed market development, UNI may be on track for some gains in the short term.
Uniswap has recently announced an improvement that will improve the user experience in using the platform completely. Investors are excited as the platform continues to find new ways to improve user engagement.
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Gas Abstraction: The Leap of Uniswap UX?
Chief Technical Officer of Protocol, Matt Riceand Uniswap’s Software Engineer, Mark Toda recently discussed regarding ERC-7702 which, if passed, will introduce a new type of transaction known as externally managed accounts (EOAs). Usually, ERC-7702 it will use gas cancellation, a feature that can improve the user experience and save users a ton of money in the process.
The next big leap for ERC-7702 Uniswap 🦄@MarkToda from @uniswap you talk to @mrice32 about how cryptocurrencies can make DeFi easier for millions. Is this the user experience revolution we’ve been waiting for? pic.twitter.com/UVR3Mid5HQ
– Across (@AcrossProtocol) September 24, 2024
According to Mark Toda, the biggest obstacle to gas extraction that must be successfully used is to authenticate users’ addresses outside of the gas chain.
“…Think about it now, if you’re trying to send tokens through a random chain and you’re trying to exchange out of there or do anything there, you currently need to have a native token to pay for gas…or authorize a contract of some kind to take your tokens,” Toda said when asked about the situation when a user exchanges tokens outside of the chains available on the platform.
To put it simply, the most notable feature of ERC-7702 is related to gas subsidy which helps users to pay different gas costs in their chain of origin. This feature, once ERC-7702 is implemented, will greatly improve interoperability, improving the user experience.
As of writing, ERC-7702 is still in its draft stage which means that the new on-chain features presented between Toda and Rice are yet to be updated. Nevertheless, it bodes well for the future of the Uniswap community.
UNI: Investors Should Watch These Rates
As of writing, UNI has continued to make ground against the bears in the medium term that marks the gates of the $7.518 resistance level. This key resistance level may continue to resist in the coming days as the market reaches its peak after days of continued movement.
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With this in mind, investors should monitor the movement of the token in the coming hours and days as this could determine the trajectory of the token. If UNI breaks this key resistance level, it opens the door towards $9.012 in the medium term.
However, if $7.518 remains unbeaten or the bulls succeed for a while before pulling back, it could trigger a bearish move towards $5.899 in the medium term.
Featured image from Pexels, chart from TradingView