UNI holders can count on this silver lining despite its bearish price action

• Glassnode’s investment allocation for Uniswap suggests that it should be one to watch in the long term.
• UNI whales have been adding to their bags but the price remains subdued.

Should Uniswap’s UNI be part of your long-term portfolio? If you are on the fence regarding such matters, consider that Grayscale, one of the largest investment companies in the crypto landscape recognizes Uniswap’s potential.

How many are 1,10,100 UNIs worth today

Grayscale recently disclosed its investment allocations in the crypto world and Uniswap happens to be one of them. The investment firm has three major funds dictating its allocations in cryptocurrencies.

The first is the Grayscale Digital Large-cap Fund. The latter allocates investment funds into large-cap cryptocurrencies such as Bitcoin.

There is also the Grayscale Smart Contract Platform Ex-Ethereum Fund and the Grayscale DeFi Fund. We will focus on the latter particularly because of Uniswap. The latter accounts for the largest investment allocation in the DeFi fund at 41.02%.

At the end of the day on October 4, 2023, Grayscale DeFi Fund’s Fund Components were a basket of the following assets and weightings.

For disclosures: https://t.co/PA8iZYgZ3O$UNI $LDO $AAVE $MKR $CRV $SNX (4/6) pic.twitter.com/p3qH68Y773

— Grayscale (@Grayscale) October 5, 2023

This means Uniswap will receive a considerably large amount of Glassnode’s liquidity. It is also an encouraging sign that intuitional investors are interested in Uniswap and its UNI token. This might be a good thing, especially in the long term when the bulls recover.

UNI’s price action recap             

UNI has been bearish for the last two months, however, recently the altcoin has been showing signs of a possible relief rally in the next few weeks. UNI’s $4.36 press time price was a 7% dip from its current weekly high which was achieved during the previous rally attempt in the last week of September.

Source: TradingView

UNI’s latest pullback resulted in yet another retest of its prevailing short-term support level. However, this brought the altcoin back at a crossroads. Will it attempt another rally or will it slip below the current support level?

On-chain data revealed that whales have been accumulating UNI for the last few months. The Supply Held by Top Addresses was now at a new six-month high, meaning whales have been buying the dip. If the whales maintain their holdings, then UNI’s current price level can be considered oversold for long-term buyers.

Source: Santiment

Furthermore, UNI’s Open Interest in USD per exchange remained low despite the growing amount held by whales. This could indicate that there was still low demand on the derivatives front. Additionally, this also suggested that although Grayscale revealed its investment allocation in favor of UNI, institutional demand was low.

Is your portfolio green? Check out the UNI Profit Calculator

On the other hand, organic demand might come to the rescue now that retail demand has been growing in the last few months. This was evident by the positive growth in the number of Addresses with Non-Zero Balances.

Source: Glassnode

Meanwhile, on-chain data also revealed that organic activity was still low. The number of Uniswap transactions that prevailed in the last two weeks ranged between 100 and 400. The numbers are bound to improve in more volatile and exciting periods in the market.