Uniswap Slingshots 45% – Can UNI Blaze Past Its 7-Day Rally?
June 26 2022 - 12:45PM
NEWSBTC
Uniswap is once again hogging the headlines following the token’s
comeback in the wake of optimistic signs that the bear market may
be winding down. In the past week, UNI, its native token, has seen
enormous growth, as the decentralized exchange’s trading volumes
have rivaled those of Ethereum, the blockchain on which it is
constructed. Multiple news agencies stated that Uniswap had
exceeded the Ethereum network in terms of transaction fees. The
flagship DEX collected more than $4 million, surpassing the
second-largest blockchain. UNI increased by roughly 45 percent in
the last week, reaching $5.46, its highest level in more than three
weeks. Uniswap Making Northbound Trajectory The biggest DeFi
exchange has been trending upward since the beginning of the week.
Looking at the price trend over the last few days, it appears that
UNI’s main objective is to close June on a positive note. In
addition, the stockpiling of UNI tokens by whales is a significant
component in the token’s price bump. After a debilitating first
half of the year, rising fees on Uniswap may be an indication that
the DeFi market is beginning to recover. UNI total market cap at
$4.14 billion on the weekend chart | Source: TradingView.com This
year, total value locked (TVL) in DeFi has shrunk by more than 60
percent, according to data from DeFi Llama. Katie Talati, an
analyst at Arca, attributes the DeFi exchange’s most recent
accomplishment to quickly increasing volatility, which led to a
substantial increase in trading volumes. Simultaneously, Ethereum
has witnessed a significant fall in user activity, whereas layer-2
solutions are gaining popularity because of their low
transaction fees. UNI Facing Bullish Momentum Uniswap is among
those that have benefited from the recent market restoration,
having lately attempted a price turnaround. UNI is up 2% in the
last 24 hours, which is a significant increase for the token since
it dropped to $3.39 during the last slump. Faced with the continued
bullish advance, there is no selling opportunity for bears in the
$5.8 to $6.2 resistance zone, which has been in place for more than
30 days and has been repeatedly retested. Although bears are still
prominent in the bull market, bulls do not wish to relinquish their
UNI token holdings. This year, Uniswap has lost less than 50
percent of its total value locked (TVL). This week has also seen
modest inflows, with the TVL increasing by 11 percent to $5.1
billion. Enhanced participation with Ethereum Layer 2s may
contribute to the exchange’s rising popularity. Already embraced by
major organizations like Polygon and integrated into other
Ethereum-based applications, Uniswap has a large user base.
Featured image from Cryptokio, chart from TradingView.com
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