Despite not experiencing a favorable short-term trend, Bitcoin’s price continues to stabilize below $42,000. However, the majority of the market is preparing for a bull season and focusing on more long-term goals. Today, we witnessed a major DeFi platform expand into Bitcoin. We will examine the details of this latest move and its potential long-term impact.
Uniswap is the largest DeFi platform operating on Ethereum and sidechains such as Arbitrum, Optimism, and Polygon. According to an announcement made today by GFX Labs, Uniswap Decentralized Exchange has expanded to Rootstock, a sidechain of Bitcoin. This latest step, which allows Ethereum-based Uniswap to leverage the security and power of Bitcoin, could further broaden its DeFi user base.
Bitcoin potentially gained smart contract capabilities with the Taproot update at the end of 2021. However, the applications of these capabilities had not been seen until the recent launch of the Ordinals protocol. Developers are now attempting to transform the king of cryptocurrencies into something resembling Ethereum, through sidechains and directly over the Bitcoin network.
If more concrete steps are taken for smart contracts on the Bitcoin network and interest increases, Bitcoin could become a serious competitor to giants like Solana, Aptos, Avalanche, and even Ethereum.
Amidst Bitcoin price fluctuations, UNI Coin has once again reverted to the $6 threshold. The critical support level is $5.9, and closures below this could have the potential to erase recent gains. If the downward trend continues, the price could fall to $5.65, and even to $5. Investors currently focusing on news from the US are opting to reduce their risks in altcoins.