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Despite Bear Market Uniswap Gains Significant Traction, Whats THE TRUTH?

Recent weeks have brought a confident twist in the flow of events within the cryptocurrency market, specifically for Uniswap. Many of the crypto assets are gaining more value within their prices. This overturns following the severe crypto winter that puts plenty of protocol at the edge.

Most witnessed drastic price drops around 50% since January 2022. The final chaos in the crypto space was better imagined than described.

Additionally, the collapse of the algorithmic Terra stablecoin and its own native token, LUNA, spiked the downward trend. Several investors lost huge amount of money, creating tension in the complete crypto industry. Some crypto service companies were thrown off balance because they struggled to be their ship afloat.

However, those hateful pounds still went bankrupt with the majority of their depositors funds locked on the platforms. Some participants in the market are starting to lose confidence in digital assets as fear, uncertainty, and doubt gradually crept in.

All appears to be going progressively well for Uniswap, as its native token, UNI, increases its price value. The effectiveness of its price increase has put Uniswap in ranking by market cap on the list of top 15 cryptocurrencies.

Furthermore, the Ethereum-based decentralized protocol has experienced a substantial surge in value, reaching 150% in the last seven weeks.

Despite Bear Market Uniswap Gains Significant Traction, What's Reality?
Uniswap Sentiment Activity l Source: Sentiment

In accordance with data from Santiment, an on-chain analytics firm, there’s been an elevated and substantial whale accumulation of the UNI tokens. This explains its recent price rally and also the surging address activity.

Santiment reported that the Uniswap daily active addresses have increased to over 1,100. With the current presence of strong address activity on the network, the protocol gets the potential to sustain the existing price action.

Uniswap Whale Addresses Push Positive Moves

Uniswap whale addresses show a confident move because the crypto crash of May 2022. The addresses have accumulated vast levels of UNI tokens ranging in massive percentages. Within their performance, whale addresses containing around 100 thousand to at least one 1 million UNI tokens have undergone massive accumulation within days gone by fourteen days.

Also, Santiment noted that the amount of transactions they deem to be prominent are those taking about $100,000 or even more. It mentioned that such transactions are from the whales and moving back again to those observed in May levels.

So, it stated that the recent significant transactions from the whales are noticeable. The reason being such moves accumulated just during the past week prior to the price climbed to $9.69.

Despite Bear Market Uniswap Gains Significant Traction, What's Reality?
Uniswap has gained massive traction recently l Source: UNIUSDT on TradingView

Besides its price rally, Uniswap has increased its active average trader returns. It currently recorded over 22.5% in its 30-day MVRV.

Based on the report from Santiment, the existing value is actually above the chance zone. Despite Uniswaps 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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