The events that transpired this month have left many altcoins suffering including the biggest Decentralised exchange in the world. Uniswap has been consistently registering losses throughout February despite the relief rally on 4 February. However, the recent rally also got invalidated within the next few days.
Uniswap in a bind
As the month began most altcoins following Bitcoin managed to make some recovery against the January dip. In fact, up until 16 February, Uniswap was the best performing DEX losing only 2.44% in its TVL.
That changed again after the last 48 hours where UNI went down by 11.46% adding to the almost 18% dip over the last 10 days.
This led to the investors’ ongoing selling to stop. In the while that the rally lasted, UNI holders sold over 1.5 million UNI worth over $15 million to minimize losses and make the most of the rise.
But the network-wide losses of $485 million since 1 February followed by the dip of 10 February led to these investors halt their selling spree.
It was around this time when even whales went dormant. The usual spikes of whale transaction volume which used to reach $70 million to $100 million in January turned into a straight line of $9 – $10 million average in the last 10 days.
Consequently, the entire network bore the effects of the downfall. The network growth which was already well below the par, touched its lowest ever in 17 months since September 2020.
Regardless Uniswap continues to maintain its position as the dominating DEX in the DeFi space generating over $33 billion in volume just this month. Its closest competitor Curve Finance stood at just $3.1 billion.
Although it only brought in 3,334 new users, the losers, it lost did not cross 11,000. The same figure in December touched 13,800. Fortunately 3660 out of which came back to Uniswap.
External factors particular to Uniswap haven’t been as influential either considering Uniswap hasn’t undergone any major network development.
Although Uniswap and its developers have been a major presence at the ongoing ETHDenver, they have not been able to rustle enough feathers to initiate a successful recovery.
Thus, for now, Uniswap holders will have to depend on the broader market cues to indicate a bullish signal.