UNI traders anticipating a bullish stride could be disappointed. Here’s why…
- 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.
? Uniswap wallet growing like crazy
It's only been ~2 weeks since launch and yesterday saw over 20,000 unique users and almost $10m in trading volume
And we're just getting started. We aim to ship like crazy this year – expect constant improvements ?
— hayden.eth ? (@haydenzadams) May 3, 2023
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.
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.
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.
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.
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.