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These are two metrics that might sugggest that the BetaShares NASDAQ 100 ETF (ASX: NDQ) is a no-brainer buy for a long-term investor’s share portfolio today.

The first is its long-term performance record. Over the past five years, this exchange traded fund (ETF) has delivered an impressive average return of 18.22% per annum. Since its inception in May 2015, NDQ has averaged 16.6% per annum.

Considering an ASX-based index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) has averaged just 6.88% per annum over the past five years, NDQ investors might feel rather grateful they had branched out from ASX shares over the timeframe.

The second metric is the steep drop NDQ units have suffered over 2022 thus far. It has been a rather brutal year to date for the BetaShares NASDAQ 100 ETF. Between 1 January and 30 June 2022, NDQ units have lost a painful 25.4%.

So we have a long-term performer that has just suffered a major dip. Some investors might see the perfect mix here for a ‘buy the dip’ opportunity. But is it as simple as that?

Is it buy the dip time for the NASDAQ 100 ETF?

The NASDAQ 100 ETF is an index fund at the end of the day. It covers the 100 largest shares on the US Nasdaq Composite (INDEXNASDAQ: .IXIC). Yes, the NASDAQ has had a golden decade of sorts, driven largely by the stellar returns of the FAANG stocks such as Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), and Aphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL).

But we have seen periods of immense returns for the NASDAQ before. Between March 1992 and March 2000, the NASDAQ appreciated by more than 700%. That’s almost twice the gain that the NASDAQ experienced over the eight years to November 2021.

But here’s what investors should remember. The NASDAQ also lost around 75% of its value between March 2000 and March 2003. It would take until March 2015 for the NASDAQ to recover to the heights we saw in the dot-com peak of March 2000.

I’m not suggesting this will happen again. But what I am suggesting is that an investment can look like a no-brainer if we look at a five-year performance chart. But it’s only after we zoom out and get the fuller picture that past patterns can really be appreciated.

There is one big difference between 2000 and today though. Back in 2000, the NASDAQ was full of companies that had yet to become profitable. Today, the NASDAQ is dominated by some of the most profitable companies in the world. For that reason, I still think the BetaSahres NASDAQ 100 ETF is a no-brainer buy today for a long-term investor.

The post Is the NDQ ETF a no-brainer buy right now? appeared first on The Motley Fool Australia.

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More reading

• 3 high quality ETFs for ASX investors to buy today
• I think the Betashares Nasdaq 100 ETF looks like a strong buy
• What’s in store for the BetaShares NASDAQ 100 ETF in the next 12 months?
• 2 beaten down ETFs for ASX investors to buy
• Here are 3 fantastic ETFs for ASX investors to buy now

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet (A shares), Amazon, and Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and BETANASDAQ ETF UNITS. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is enjoying a decent day of trading as it currently stands this Tuesday.

At the time of writing, the ASX 200 has gained 0.28% and is back above 6,800 points. That’s despite a couple of dips into negative territory so far today.

Let‘s dive a little deeper and check out the ASX 200 shares currently at the top of the trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

South32 Ltd (ASX: S32)

First up today is diversified mining company South32. This ASX 200 miner has had a notable 12.38 million shares change hands on the markets this Tuesday. There’s been no fresh news from South32 today. Saying that, the miner did release a well-received quarterly update yesterday.

It seems sentiment is continuing to coalesce around South32 today. The company is currently up a pleasing 4.35% at $3.72 a share. This is probably the reason for the higher trading volumes we are seeing.

Pilbara Minerals Ltd (ASX: PLS)

Another mining company is next in lithium producer Pilbara Minerals. This ASX 200 lithium stock has had a sizeable 14.83 million of its shares bought and sold thus far. There’s been no news out of Pilbara, either today or this week. So, this elevated volume is probably a consequence of the Pilbara share price rise. It’s enjoying a healthy gain this Tuesday, clocking in a 2.17% increase to $2.60 at the time of writing.

Zip Co Ltd (ASX: ZIP)

Lastly today, we have ASX 200 buy now, pay later (BNPL) share Zip Co. Zip has had a whopping 29.47 million of its shares trade on the share market today.

We don’t have to look too far on this one. This volume is almost certainly the result of the massive share price movements we have seen with Zip.

As we covered earlier, Zip is currently up an impressive 19.3% at $1.02 a share. It rose by as much as 24% to $1.07 earlier in the day. No wonder so many shares have been flying around.

The post Here are the 3 most heavily traded ASX 200 shares on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Why Myer, South32, Vulcan, and Zip shares are racing higher
• Why are ASX buy now, pay later shares rocketing higher today?
• Zip share price soars 24% to break $1 mark for first time in 2 months
• ASX 200 midday update: Iress sinks on CEO exit, Flight Centre shares descend
• Rocks in their heads? How young investors helped make Pilbara Minerals one of the most popular shares of FY22

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Lake Resources NL (ASX: LKE) share price is lifting higher in afternoon trade on Tuesday.

At the time of writing, the ASX lithium share is swapping hands at 72.5 cents apiece, 5.07% in the green. Investors have bid the share higher on no news.

In broader market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is up around 1.75% on the day.

What’s behind the Lake Resources share price?

Curiously, the share has routinely found itself on the most shorted ASX shares list over the past few weeks.

This occurred up until yesterday when Lake had short interest of 9.2%, placing it on the list of the top 10 most shorted shares.

Prior to this, Lake had caught a bid on 19 July after shrugging off research from notorious short-bias firm J Capital.

Lake had pushed back on claims in a J Capital report that it had “put forth incorrect information on technical matters”.

Noteworthy is the price of lithium as well. It continues to remain buoyant as many other commodity prices fall.

Trading Economics reports:

Lithium carbonate prices in China moved sideways at the 475,500 yuan/tonne (A$101,145/tonne) level through July, remaining near the record-high of 500,000 (A$106,356) from March and 430% higher year-on-year as demand continued to increase.

As seen on the chart below, the Lake Resources share price and the price of lithium tend to track each other closely. Returns since March 2022 are plotted on the chart below.

Meanwhile, Lake Resources is rated as a buy from 100% of the brokers covering the share, according to Refinitiv Eikon data.

The consensus price target from this list is $2.56 per share, suggesting considerable upside potential from the current market price should these brokers be correct.

In the past 12 months, the Lake Resources share price has held onto a 75% gain, despite a 28% loss this year to date.

The post Why has the Lake Resources share price surged 16% in a week? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• ASX 200 lithium shares get busy amid dire supply call
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price is sliding today.

The travel company’s share price is falling 4.31% and is currently trading at $16.86. However, in earlier trade, the Flight Centre share price had fallen 5.21% before recovering slightly.

For perspective, Flight Centre shares leapt nearly 3% yesterday. Furthermore, the S&P/ASX 200 Index (ASX: XJO) is 0.26% higher today.

Let’s take a look at what is happening at Flight Centre.

Broker updates

Flight Centre shares are not the only ASX 200 travel shares dipping today. The Webjet Limited (ASX: WEB) share price is falling 1.67%, while Qantas Airways Limited (ASX: QAN) shares are down 1.96%.

Goldman Sachs has placed a neutral rating on the company’s shares with a $20.90 price target. This is nearly 24% more than the current share price. Previously, as my Foolish colleague Aaron reported, Goldman had a $20.40 price target on the company’s share price.

However, Credit Suisse has placed an underperform rating on the company’s shares with a $14 price target. Morgans has also expressed concern the company’s earnings may not go back to pre-COVID levels until FY2025.

Yesterday, Flight Centre shares surged on the back of the company’s upgraded guidance for the 2022 financial year.

The travel company reported it is expecting to report an EBITDA loss of $180 million to $190 million for FY2022. This is 11.9% better than the halfway point of the company’s previous FY2022 guidance.

Commenting on the results, managing director Graham Turner said:

After an incredibly challenging period, we were pleased to achieve our goal of returning to
monthly underlying EBITDA profitability in both the corporate and leisure sectors late in the
year

Flight Centre said the scale of the travel recovery exceeded the company’s expectations.

Flight Centre share price snapshot

The Flight Centre share price has surged 17% in the past year, while it has descended 4% in the year to date.

For perspective, the ASX 200 has lost nearly 8% in a year.

Flight Centre has a market capitalisation of about $3.3 billion based on the current share price.

The post Why is the Flight Centre share price tumbling 5% today? appeared first on The Motley Fool Australia.

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More reading

• Why Flight Centre, Iress, Nitro, and Perseus shares are dropping today
• ASX 200 midday update: Iress sinks on CEO exit, Flight Centre shares descend
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Why Damstra, Flight Centre, IAG, and Pantoro shares are pushing higher

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX coal shares have rallied hard during 2022, emerging as one of the top performing share baskets on the market.

The price of coal has been somewhat of an anomaly these past few weeks. Coal has held onto its gains of the past year while most other commodities have turned to the downside.

The black rock now trades at US$410 per tonne, around 174% higher than it was 12 months ago. Newcastle coal futures have soared even higher than that.

The graph below illustrates the movement of the Newcastle coal futures price, along with the share prices of major ASX coal producers Whitehaven Coal Limited (ASX: WHC), New Hope Corporation Ltd (ASX: NHC), and Yancoal Australia Ltd (ASX: YAL).

Can the rally be sustained?

According to a recent research note from investment bank Macquarie, the current premium attached to coal pricing is “fundamentally unsustainable”.

The broker reckons prices will gradually revert back to respectable levels, as metallurgical coal makes its way into the thermal coal market.

Furthermore, Macquarie says a recent selloff in coking coal markets that’s seen the price of coking coal plunge from US$530/tonne to US$230/tonne from June to date is “fundamentally justified”.

The broker said:

In our view, while the coking coal price drop since May is fundamentally justified by the worsening demand outlook, the selloff is starting to look overdone for a market still facing a structural deficit.

Despite this, Macquarie also reckons there is still upside potential for the market as investors buy in at the lows.

Meanwhile, governments in Europe have recently announced the return to service of several coal-fired power stations, according to Refinitiv Eikon analysis.

The decision has pushed the EU to revise its expectations on coal consumption in Europe over the short to medium term, it said.

Analysts added:

We expect the magnitude of the impact on Germany’s coal consumption will be most pronounced in the winter months of 2022 and 2023, and potentially also the following winter.

The news could be positive for ASX coal players such as Whitehaven, Newhope, and Yancoal.

All three of the ASX coal giants are set to report their full-year earnings soon, where we will also get a glimpse into FY23 guidance.

The post How long can ASX coal shares keep this rally up? appeared first on The Motley Fool Australia.

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More reading

• Why is Whitehaven share price climbing 5% today?
• Morgan Stanley tips 30% upside for the Whitehaven share price. Here’s why
• Rocks and lasers: 2 ASX All Ords shares securing new multi-year highs on Wednesday
• Here are the top 10 ASX shares today
• These ASX 200 coal shares are smashing 10-year highs on Tuesday

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking to invest in the tech sector, then check out the two tech shares listed below.

Both of these ASX tech shares have been named as buys and tipped for strong growth in the future. Here’s what you need to know:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX tech share to look at is Aristocrat. It is a leading gaming technology company with a portfolio of popular poker machines and mobile games.

The team at Morgans is very positive on the company’s outlook. This is due to its high quality gaming portfolio, its strong balance sheet, and its plans to move into real money gaming.

The broker summarised its bullish view. It said:

We expect ALL to continue to take market share in all its product segments. Demand for its gaming machines and digital games is resilient to economic cycles. […] With $3.3bn of currently available liquidity, ALL has significant funding capacity for growth, even after the buyback. It has a stated ambition to build a meaningful presence in the rapidly growing online real money gaming segment, which we believe may be achieved both through organic investment and inorganic acquisitions.

Morgans currently has an add rating and $43.00 price target on Aristocrat’s shares. Based on the current Aristocrat share price of $35.74, this implies potential upside of 20% for investors.

Readytech Holdings Ltd (ASX: RDY)

Another ASX tech share that could be worth considering is Readytech. It is a growing provider of enterprise software to defensive market verticals such as higher education, human resources, work pathways, and local government.

Analysts at Goldman Sachs are fans of the company due to its high recurring revenue and strong position in defensive areas of the market that are under-served by large enterprise software competitors. Morgans feels that this bodes well for the company’s performance in the current environment.

The broker commented:

In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions (such as IT Vision), with profitability underpinned by solid software metrics including low churn at ~3% and high LTV/CAC. RDY serves defensive end markets (e.g. higher education, local government) and has high recurring revenue (>85%) which should protect the company’s earnings profile in an economic downturn.

Goldman has a buy rating and $4.60 price target on Readytech’s shares. Based on the current Readytech share price of $3.02, this suggests potential upside of 52% for investors.

The post Experts say these ASX tech shares would be excellent buys appeared first on The Motley Fool Australia.

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More reading

• Analysts name 2 stellar ASX growth shares to buy
• Why this leading broker is bullish on the Aristocrat share price
• Experts name 2 ASX growth shares for investors to buy now
• Why has the Aristocrat share price increased 17% in two months?
• Here’s why analysts are tipping these ASX growth shares as buys

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Beach Energy Ltd (ASX: BPT) share price is edging higher on Tuesday afternoon despite no announcements from the company.

At the time of writing, the energy producers’ shares are 3.47% higher to $1.79 a pop.

For context, the S&P/ASX 200 Index (ASX: XJO) is also in the green by 0.25% to 6,806 points.

Let’s take a look at what’s fuelling Beach Energy shares to a 4-week high.

Beach Energy rally ahead of crucial Fed Reserve decision

Investors are bidding up the Beach Energy share price following a strong uplift across the S&P/ASX 200 Energy (ASX: XEJ) index today.

The ASX 200 benchmark energy sector is the best performer among the ASX indices, rising 2.55% to 10,076.5 points.

This represents a sharp rebound after falling more than 4% over the past three consecutive trading days.

It appears short sellers are closing out on their bets against exchange-traded funds (EFTs) tied to oil.

According to oilprice.com, there is the belief that the days of oil entering into bear market territory are now over.

In effect, this has led the price of the West Texas Intermediate (WTI) to climb 1.35% to US$98 a barrel.

However, with crucial data to be reported out of the United States this week will without doubt have an impact on energy markets.

The Federal Reserve is set to decide on whether to lift interest rates or not on Wednesday following the latest CPI data.

Shares in fellow energy peers, Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) are up 2.34% and 2.65%, respectively.

Beach Energy share price snapshot

Despite wobbling in the past few weeks, the Beach Energy share price has gradually travelled upwards to post a gain of 44% since the start of the year.

The company’s shares are around 7% off their 52-week high of $1.905 achieved on 9 June.

Beach Energy has a price-to-earnings (P/E) ratio of 10.16 and commands a market capitalisation of roughly $3.95 billion.

The post Why is the Beach Energy share price having such a top run on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Friday
• Beach share price falls despite solid FY22 revenue growth
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Grange Resources Limited (ASX: GRR) share price is tumbling 10% following the release of its results for the June quarter.

After falling 2% on open, the iron ore producer’s stock plunged to an intraday low of $1.14, a 13% drop. At the time of writing, its shares are trading at $1.18 each, 10.27% lower.

Grange Resources share price plunges on quarterly results

Here are the key takeaways from the company’s June quarter results:

• Iron ore concentrate production rose to 664 kilotons ­– a 4% quarter-on-quarter improvement
• Iron ore pellet sales increased to 705 kilotons – a 47% increase on that of the March quarter
• The average received price for the quarter dropped to $193.44 per tonne
• Operating costs increased to $122.72 per tonne

The iron ore producer’s production costs rose 15% in the June quarter, driven by higher energy costs. Meanwhile, its realised sales price dropped 37% on that of the March quarter, alongside iron ore prices.

The company’s iron ore pallet sales jumped considerably quarter-on-quarter due to planned maintenance activity in the prior period.

It ended the June quarter with cash and liquid investments of $369.5 million and trade receivables of $8.5 million.

What else happened in the June quarter?

The Grange Resources share price gained 13.5% over the three months ended June despite the only news from the company – its results for the March quarter – driving it 5% lower.

It also continued working towards the development of its north pit underground mine and expects the rebuild of its furnace line 4 to begin commissioning in the current quarter.

What did management say?

Grange Resources CEO Honglin Zhao commented on the results driving the company’s share price today. He said higher energy prices and the deflating iron ore price made for a “challenging” June quarter, adding:

Despite these headwinds, our team continues to focus on cost discipline, safe, and effective production as we see through this difficult period.

What’s next?

The company is working towards a definitive prefeasibility study for its 70%-owned Southdown Magnetite Project. It’s expected to be completed later this year.

It’s also developing an environmental, social, and governance (ESG) framework. It expects to release its first full disclosure statement in the current quarter.

Grange Resources share price snapshot

Today’s dip hasn’t been enough to plunge the Grange Resources share price into the long-term red.

The stock is still 50% higher than it was at the start of 2022 and 38% higher than it was this time last year.

For comparison, the All Ordinaries Index (ASX: XAO) has slipped 11% this year and 8% over the last 12 months.

The post Grange Resources share price sinks 10% following ‘challenging’ quarter appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• Here are the top 10 ASX shares today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Macquarie Group Ltd (ASX: MQG) share price will be one to watch later this week.

On Thursday morning, the investment bank is holding its annual general meeting and, traditionally, it releases its first quarter update ahead of the event.

What is expected from Macquarie during the first quarter?

According to a note out of Citi, its analysts are expecting another strong quarter from the investment bank. Its analysts are forecasting a first quarter net profit of approximately $1 billion.

However, Citi has warned investors that the following quarters may not be as positive given the very strong comparable periods that they will be cycling and potential headwinds. Citi explained:

MQG is due to present a quarterly update at its upcoming AGM, which we forecast at NPAT of ~$1bn. While we see little risk around upcoming quarters, we do however see greater uncertainty emerging regarding quarters thereafter.

MQG needs to cycle record quarters in 3Q23 and 4Q23. Volatility is likely to remain elevated, but commodities remains overleveraged to a number of ‘crises’ while volatility and accelerating rates will start to weigh on deal flow (asset gains and M&A advisory revenues).

In light of this, the broker has retained its neutral rating with a $187.00 price target. Its analysts added:

While there is much talk of a ‘cycle’ in the market, MQG forward earnings forecasts appear extremely resilient to a tightening of financial conditions and see record earnings plateauing out to FY25. With record tightening underway and a vastly more cyclical business than 5 years ago, we see potential downside risk emerging through the year. We stay Neutral given mid-cycle value, but see risk of consensus revisions.

The post Own Macquarie shares? Here’s what to expect from its Q1 update appeared first on The Motley Fool Australia.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Uniswap (CRYPTO: UNI) is one of the best-known pioneers in decentralized finance (DeFi) and has always had a passionate following in the crypto space. It is now the number 18 crypto in the world by market capitalization, but the primary allure of Uniswap has always been for die-hard crypto enthusiasts, not for mainstream investors. In fact, if you’re not into DeFi, you may not have ever heard of Uniswap. 

That’s why the recent announcement by Robinhood Markets (NASDAQ: HOOD) that it was adding Uniswap to the crypto trading menu on its popular app is so exciting. There are only 13 cryptos on the menu today, so the move could help Uniswap find more mainstream acceptance, especially among young millennials. Anyone opening up the Robinhood app on their phone can now find Uniswap right next to fan favorites like Bitcoin (CRYPTO: BTC) or Ethereum (CRYPTO: ETH). Perhaps not surprisingly, Uniswap has already started to rally.

Behold the DeFi unicorn

Since its launch in November 2018, Uniswap has been a leader in the DeFi space. With backing from a number of high-profile venture capital firms (including Union Square Ventures and Andreessen Horowitz), Uniswap popularized the concept of the decentralized exchange (DEX). This focus makes it very different from Coinbase (NASDAQ: COIN), which is a centralized exchange (CEX). Uniswap also pioneered the concept of the automated market maker (AMM), which describes how liquidity is provided to the market. Those might seem like obscure or arcane terms if you’ve never worked on Wall Street, but they are actually key underpinnings of decentralized finance.

Of course, there are plenty of other decentralized exchanges out there — all of them with funny names like SushiSwap (CRYPTO: SUSHI) or PancakeSwap (CRYPTO: CAKE). However, Uniswap is generally acknowledged to be the biggest and the best because it specializes in crypto tokens that trade on the Ethereum blockchain. In addition, Uniswap just passed a major milestone (more than $1 trillion traded over its lifetime) in May. Controversial new research from Kaiko now suggests that daily trading volume on Uniswap may soon be close to matching that of Coinbase. 

Back in the summer of 2020 (also known to crypto enthusiasts as “DeFi summer”), Uniswap was getting so much love that even level-headed mainstream publications like Bloomberg were swooning over it. The market cap for Uniswap is now over $5 billion (five times the amount of a traditional Silicon Valley unicorn), and the logo for Uniswap is a pink-and-white unicorn. So, by investing in Uniswap, you are investing in a real DeFi unicorn. 

Uniswap and NFTs

Another catalyst for Uniswap this summer could be its strategic transition into the nonfungible token (NFT) market. In June, Uniswap announced that it had acquired Genie, a new type of NFT marketplace. Unlike a traditional NFT marketplace like OpenSea, Genie is an aggregator marketplace. This means that it pulls in NFT listings from various other marketplaces to provide users with a more comprehensive set of listings. (In much the same way, a news aggregator pulls in content from a variety of different news sources to one main dashboard.)

What makes this strategic move so interesting is that Uniswap could apply the same market-making technology used to trade crypto tokens in order to trade NFTs. The way people trade NFTs now is not entirely efficient because it is sometimes difficult to match up a buyer and a seller and then agree on a final sale price for an NFT. Using its proprietary technology, Uniswap could theoretically make this process much more efficient and provide more overall liquidity to the NFT marketplace.

A second chance to buy Uniswap

By investing in Uniswap now, you are potentially gaining access to a crypto with a strong following and enormous growth potential based on its position in the DeFi world. Best of all, Uniswap is trading for less than $10 right now. At its all-time high, Uniswap traded for just under $45, so there is definitely some upside here. You may have missed buying Uniswap back in 2020, but you have a second chance now — and at a bargain price. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is it finally time to buy this crypto unicorn? appeared first on The Motley Fool Australia.

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Dominic Basulto has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Coinbase Global, Inc., and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin, Ethereum and SushiSwap. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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