Introduction

What is Uniswap?

Uniswap is a dex build on both the ethereum and polygon blockchain. The dex facilitates automated transactions between erc20 tokens using smatcontracts. UNI is the native token of the Uniswap dex and can be used to vote on Uniswap governance proposals.

Methodology

• We will look at prices of UNI, ETH, AAVE, SUSHI over time.

• We will look to see how the prices of these assets compair in their price movement.

• We will look at data from 2021 and after.

UNI Market Correlation Metrics

Observations

• On a logarithmic scale the movement of these 4 assets seem very similar

• Since November of 2021 the AAVE, UNI, and SUSHI token price have been declining faster than the price of ethereum.

Observations

• UNI has a very similar correlations with AAVE and SUSHI around 0.85.

• Although UNI has a positive correlation with ETH it is much smaller than the major erc20 Tokens.

Conclusion

The UNI Token has a positive correlation to ETH, AAVE, and SUSHI, but the price of the erc20 tokens are much better.