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UNI traders anticipating a bullish stride could be disappointed. Here’s why…

2min Read

Uniswap wallet has reportedly attracted more than 20,000 unique users within the first 2 weeks after its launch. On top of that, trading volumes within the wallet are rapidly approaching the $10 million milestone

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  • The Uniswap wallet is off to a great start within the first two weeks marked by robust user growth.
  • UNI struggles to bounce back after a short-term support retest.

Two weeks have passed since the Uniswap wallet was launched and initial data reveals that it is off to a healthy start. Uniswap’s founder revealed that the wallet was already seeing robust adoption and strong volumes despite the slow market conditions.

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The Uniswap wallet reportedly attracted more than 20,000 unique users within the first two weeks after its launch. On top of that, trading volumes within the wallet were rapidly approaching the $10 million milestone.

The same two weeks were characterized by slow market conditions. Uniswap’s founder expected the wallet to deliver a more robust performance as things improve.

The Uniswap wallet’s performance reflected the state of the DeFi platform. Uniswap’s network growth also registered robust growth within the same two weeks.

But can the network maintain this trajectory? Uniswap’s network growth metric registered a sharp drop in the last 24 hours. Similarly, the weighted sentiment also fell after previously indicating a bullish consensus.

Uniswap network growth and weighted sentiment

Source: Santiment

The declining sentiment and network growth were likely influenced by a sharp slowdown in activity as investors waited for FOMC data. This suggested that we may see a resurgence of network activity now that the highly anticipated economic event has passed but that remains to be seen.

Evaluating the chances of UNI bulls regaining dominance

The network activity slowdown reflected low volumes observed in the last few days. Uniswap’s native token UNI’s volume hovered near its current 30-day lows at the time of writing. This confirmed a lack of excitement among traders.

Uniswap volume and supply held by top addresses

Source: Santiment

It was also worth noting that lower volumes were observed after a noteworthy drop in the supply held by top addresses in the last week of April. As a result, UNI slid back to its short-term support level in the last few days. It traded at $5.31 at press time.

UNI prie action

Source: TradingView

Realistic or not, here’s Uniswap’s market cap in BTC’s terms

UNI’s low volume and declining investor confidence may give way to the bears, and a potential break below the current support level. A recap of UNI’s supply flow revealed that supply on exchanges had a net gain in the last 30 days while supply outside exchanges declined.

UNI supply in and outside exchanges

Source: Santiment

So, what should investors expect? We might see a resurgence of bullish demand especially now that the FED just revealed its next move as far as rate hikes are concerned.  This means there is a significant probability that UNI might bounce off the short-term support, subject to demand recovery.


Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
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