Despite Bear Market Uniswap Gains Significant Traction, What’s The Reality?
August 07 2022 - 8:00AM
NEWSBTC
The past few weeks have brought a positive twist in the flow of
events within the cryptocurrency market, especially for Uniswap.
Lots of the crypto assets are gaining more value in their prices.
This overturns after the severe crypto winter that puts lots of
protocol at the edge. Most witnessed drastic price drops up to 50%
since January 2022. The last chaos in the crypto space was better
imagined than described. Additionally, the collapse of the
algorithmic Terra stablecoin and its native token, LUNA, spiked the
downward trend. Several investors lost millions of dollars,
creating tension in the entire crypto industry. Some crypto service
companies were thrown off balance as they struggled to be their
ship afloat. Related Reading: This On-Chain Indicator Suggests
Bitcoin Still Only 1/3rd Into Bear Market However, a few of them
still went bankrupt with most of their depositors’ funds locked on
their platforms. Some participants in the industry are beginning to
lose confidence in digital assets as fear, uncertainty, and doubt
gradually crept in. All seems to be going progressively well for
Uniswap, as its native token, UNI, increases its price value. The
strength of its price increase has put Uniswap in ranking by market
cap among the top 15 cryptocurrencies. In addition, the
Ethereum-based decentralized protocol has experienced a significant
surge in value, reaching 150% over the past seven weeks. According
to data from Santiment, an on-chain analytics firm, there has been
an increased and substantial whale accumulation of the UNI tokens.
This explains its recent price rally as well as the surging address
activity. Santiment reported that the Uniswap daily active
addresses have risen to over 1,100. With the presence of strong
address activity on the network, the protocol has the potential to
sustain the current price action. Uniswap Whale Addresses Push
Positive Moves Uniswap whale addresses have shown a positive move
since the crypto crash of May 2022. The addresses have accumulated
vast amounts of UNI tokens ranging in massive percentages. In their
performance, whale addresses containing up to 100 thousand to 1
million UNI tokens have undergone massive accumulation within the
past two weeks. Also, Santiment noted that the level of
transactions they deem to be prominent are those taking about
$100,000 or more. It mentioned that such transactions are from the
whales and moving back to those seen in May levels. Related
Reading: Low Caps Like Uniglo (GLO) And Convex Finance (CVX) Likely
To Make New Millionaires Alongside Bitcoin (BTC) So, it stated that
all the recent significant transactions from the whales are
noticeable. This is because such moves accumulated just in the past
week before the price climbed to $9.69. Besides its price rally,
Uniswap has increased its active average trader returns. It
currently recorded over 22.5% in its 30-day MVRV. According to the
report from Santiment, the current value is clearly above the
danger zone. Despite Uniswap’s impressive price rally, Santiment
has advised investors to tread with caution with the protocol.
Featured image from Pexels, charts from TradingView.com
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