Uniswap (UNI) Token Declines 7.2% Over the Past Week, But New Permissionless Bridging Feature Could Be a Catalyst Worth Watching

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Uniswap (CRYPTO: UNI) users have been asking for this feature for a long time. Now that it's finally here, let's take a closer look at what it means for the decentralized exchange (DEX) giant.

What Happened: On Monday, Uniswap Labs, the company behind decentralized exchange Uniswap, announced the launch of permissionless bridging on the Uniswap network.

This feature now allows swaps to be made across multiple blockchains directly from the Uniswap network.

At launch, nine networks are directly integrated with Uniswap, including Ethereum (CRYPTO: ETH), Polygon (CRYPTO: MATIC), Arbitrum (CRYPTO: ARB), and Base (CRYPTO: BASE).

Only stablecoins and the native tokens of each chain will be available for bridging at launch, although it is expected that this functionality will be expanded over time.

These new bridging capabilities are being powered by Across Protocol, which will allow for an average fill time of around three seconds for Ethereum and stablecoin transactions moving forward.

Why It Matters: The launch of in-app bridging on the Uniswap protocol is a significant announcement.

This feature has been requested by users for some time and will allow traders to perform cross-chain swaps.

As a result of this new functionality, we can expect to see a significant increase in transaction activity on Uniswap.

It remains to be seen to what extent revenues to the protocol will increase and be used to compensate investors via a greater token burn or an eventual return of capital.

However, this is certainly a step in the right direction for Uniswap, which is competing against a slew of other players looking to gain market share in the DEX space.

UNI Price Action: At the time of writing on Monday afternoon, the UNI token is trading at $6.43, down 7.2% over the past seven days.

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