The UNI token from decentralized finance protocol Uniswap is experiencing a drop, hitting its lowest value in nearly four weeks. Surprisingly, this decline is happening alongside continued purchasing by large-scale investors, or ‘whales’. At the same time, the trading volume on Uniswap’s platform hit an unprecedented peak.
- UNI’s value has been on a downward trajectory in recent weeks.
- Large-scale investors or ‘whales’ continue to acquire more UNI tokens despite the dip.
- Uniswap’s Decentralized Exchange (DEX) volume has achieved a record high.
The unit price of UNI recently plummeted to a low of $9.37, a decline of more than 23% from its August high. this plunge has resulted in millions of dollars being wiped off its market capitalization, which now stands at $5.9 billion.
Uniswap’s trading volume achieves record high while whales continue to purchase
Data from DeFi Llama indicates that Uniswap’s transaction volume soared to a record peak in August. The transactions witnessed a leap to an astounding $143 billion, a significantly higher value than the previous $99 billion.
The increase highlights that the network has now processed transactions worth more than $724 billion this year, cementing its position as a leading player in the decentralized exchange industry.
The protocol is also seeing an upward trend in its fees. It has generated over $273.7 million this quarter, a rise from $263.8 million in the last quarter. The fees registered this quarter are significantly higher than the $115 million observed in the third quarter of the previous year.
Uniswap’s Layer-2 solution, Unichain, launched in March, continued to record high performance numbers in August. The dApps on its network recorded a value of more than $12.54 billion, a slight decrease from July’s $13.5 billion. Since its inception, Unichain has processed over $53 billion worth of transactions.
In addition to this, the platform’s whales and smart money investors are continuously buying more UNI tokens. Their holdings are now at more than 8.77 million tokens, an increase from 8.26 million in August. Smart money currently holds over 41.6 million tokens, while the amount of tokens on exchanges has decreased to 645 million, down from August’s 655 million.
Technical analysis of the UNI price
The daily chart shows UNI’s price dropped from an August high of $12.26 to $9.36. The token has moved towards the lower end of the rising channel. The UNI token is still above the 100-day exponential moving average and the Murrey Math Lines tool’s major S/R pivot point. Therefore, the token is likely to rebound and possibly reach the upper end of the channel at $12.26, which is about 30% above its current level. A drop below the 100-day MA could invalidate this bullish UNI price forecast.
