Uniswap: How growing activity does not lead to higher UNI and TVL prices
- Monthly activity on the Uniswap network has increased as overall TVL has declined.
- The price of UNI has dropped significantly along with the growth of the network in recent days.
Due to the dominance of Uniswap (UNI) in the crypto space, there has been a significant increase in activity in recent days.
Looking at DeFi stats
According to the latest data provided by Token Terminal, Uniswap’s monthly active users have increased dramatically. However, the overall TVL (total value locked) on the network has dropped significantly over the same period.
This may be due to several reasons. Even with a rising market, people could use Uniswap for smaller, more frequent trades or quick swaps for short-term profits, rather than committing to larger, long-term assets.
Alternatively, there may be a shift to competing DeFi platforms that offer features or capabilities that better suit current market conditions.
Additionally, a lower TVL may result in lower commission income and less liquidity for smooth trading.
Source: X
At press time, UNI was trading at $10.01. The price of UNI has increased significantly since May 15th. After this, the overall price movement turned sideways between the $11.839 level and the $9.31 level.
During this period, no significant pattern or trend was detected in the price of the UNI token.
The RSI (Relative Strength Index) of the UNI token has also dropped significantly in recent days. This means that the bullish sentiment around the UNI token has decreased.
Additionally, the CMF (Chaikin Cash Flow) of the UNI token has also decreased significantly. The fall in CMF meant that the money flowing into UNI was significantly reduced.
For UNI to turn green again in the future, the token must cross the $11,839 level. Since this level has been tested and weakened in the past, the likelihood of UNI breaking through it is relatively high.
Source: TradingView
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On-chain data paints a bearish picture
Along with the price, the growth of the token network has also decreased significantly. Decreased network growth meant that new addresses were not showing interest in the UNI token at the time of writing.
If this trend continues, UNI will not be able to recover in the future. In addition, the operating speed of UNI has also decreased, which means that the frequency of UNI operation has decreased.
Source: Santiment
This is an automatic translation of our English version.