Have you ever wondered what would happen if widespread crypto adoption were to take place or how much growth a decentralized exchange like Uniswap (UNI) would achieve by targeting the consumer market? Well, it turns out we might have some answers sooner than expected thanks to a video that was recently pulled from YouTube.

A team member from Uniswap’s development team revealed that they were in talks with some traditional finance institutes including PayPal and Robinhood to facilitate integration. Such a move would open the gateway for more people to access the cryptocurrency market through the decentralized exchange. The move would not only solidify Uniswap’s lead as the top DeFi platform in the world but also dramatically increase transactions.

How will such a major development affect the UNI token?

The UNI token which is native to the Uniswap DEX will undoubtedly be affected by such developments in case they happen. Such utility tokens derive their growth from network utility. If Uniswap was to integrate with major companies such as Robinhood and PayPal, it would access a sea of potential new users to its platform, thus leading to more demand for the UNI token. Such a scenario would subsequently lead to a higher price for the native token.

UNI has been on a strong bullish uptick since July 21, when it traded as low as $14.01. It rallied as high as $23.09 on August 1 and has since then experienced a slight pullback. UNI is currently trading at $21.11, which means that it is up by more than 50% from its July lows.

Source: Binance

UNI’s performance in the last two weeks indicates strong buying pressure which reflects the state of the overall crypto market. Although it has so far managed to recover above its 7-day and 25-day moving averages, it still has some way to go before reaching its 99-day moving average. The slight retracement that is currently ongoing is an indicator that some traders are taking profits after the recent bullish run. However, the price is currently in the overbought region, which means that a slight market correction is normal.

How the potential partnerships will affect Uniswap’s users

If the decentralized exchange goes through with the partnerships, UNI holders staking their tokens will be in the green because of the transaction fees they will earn from staking, as well as block rewards. On the other hand, partnerships with traditional finance companies might result in more pressure for Uniswap to introduce KYC requirements for its users.

KYC requirements on Uniswap would be a contrast to what DeFi stands for because it introduces a regulatory avenue which means more regulatory control and oversight. It is still not clear whether this approach would push a significant number of users to other DeFi platforms that do not require KYC, thus threatening Uniswap’s dominance in the DeFi landscape.

Uniswap will ultimately have to decide whether targeting the consumer financial market through traditional finance companies is a good move for its future. The video describing the potential partnerships has been taken down. Uniswap revealed that it was deleted to avoid misleading investors about its potential dealings with the likes of PayPal. We will have to wait and see what kind of developments will pop up regarding Uniswap in the next few months to have a clearer picture of where it is headed.