Whales circle Uniswap; how does it affect you?
- Whales depositing and withdrawing significant amounts of UNI may impact the token’s price positively.
- UNI’s price surge, declining network growth, and upcoming Uniswap v4 release shaped its outlook.
Uniswap [UNI] has been one of the most dominant DEXes in the DeFi sector for the past few years. Despite its growing dominance, its token has seen massive amounts of price fluctuations and has been a victim of the ebbs and flows of the crypto market.
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Whales surround UNI
However, UNI could see an uptick in its price due to recent whale behavior. According to Lookonchain, a significant whale made a deposit of 2.57 million Tether [USDT] to Binance [BNB] and subsequently withdrew 467,825 UNI tokens, worth approximately $2.48 million.
This interest from whales could benefit UNI’s price positively. At press time, UNI was trading at $5.44, as it grew 50% after testing the $3.61 support level on 10 June.
The price of the token surpassed the previous lower highs marked by the bearish price action that preceded the $3.613 level. A large part of this surge in price could be attributed to the behavior of whales.
The price has consistently exhibited higher highs and higher lows since it started growing after 10 June, enough to establish a change in trend. It remains to be seen whether the price will surpass the $5.67 resistance level and continue to grow further.
The declining network growth of the UNI token suggested that new addresses continued to lose interest in UNI. Thus, it could be old holders who were driving the price by accumulating more UNI. One reason for the same could be the hype around Uniswap’s v4.
Anticipation for v4 grows
According to Hayden, the founder of Uniswap, the gas price required to deploy liquidity pools on Uniswap would be declining by 99%. In addition to cost savings, Uniswap V4 will also reintroduce support for native ETH.
Realistic or not, here’s UNI’s market cap in BTC’s terms
These announcements and other updates could incentivize existing addresses to buy more UNI. They could also attract new users to the Uniswap ecosystem.
At press time, the active users on the network were declining. According to Token Terminal’s data, the number of active addresses fell by 16.1% over the last month. Due to this, the fees generated by the Uniswap protocol fell by 55.7% during the same period.