Recent weeks have brought a positive turn to the flow of events in the cryptocurrency market, especially for Uniswap. Many of the crypto assets are increasing in value in their prices. This is tipping after the severe crypto winter that is bringing many protocols to the brink.
Most experienced drastic price declines of up to 50% since January 2022. The recent chaos in the crypto space was better imagined than described.
Additionally, the collapse of algorithmic Terra stablecoin and its native token LUNA added to the downside. Several investors lost millions of dollars and created tensions throughout the crypto industry. Some crypto services companies have been thrown off balance as they struggle to keep their ship afloat.
However, some of them still went bankrupt as most of their depositors’ funds were locked on their platforms. Some participants in the industry are beginning to lose confidence in digital assets as fear, uncertainty and doubt gradually crept in.
Things seem to be going increasingly well for Uniswap as its native token, UNI, increases its price value. The strength of its price rise has propelled Uniswap into the top 15 cryptocurrency rankings by market cap.
In addition, the Ethereum-based decentralized protocol has seen a significant increase in value, hitting 150% in the past seven weeks.
Uniswap Sentiment Activity l Source: Sentiment
According to data from Santiment, an on-chain analytics company, there has been an increased and significant accumulation of UNI tokens. This explains the recent price rally and increasing address activity.
Santiment reported that daily active Uniswap addresses have risen to over 1,100. Given the heavy address activity on the network, the protocol has the potential to sustain the current price action.
Uniswap Whale addresses spark positive moves
Uniswap Whale addresses have shown positive development since the crypto crash of May 2022. The addresses have accumulated huge amounts of UNI tokens that are in massive percentages. In their performance, whale addresses containing up to 100,000 to 1 million UNI tokens have seen massive accumulation over the past two weeks.
Santiment also noted that the level of transactions that they consider outstanding are those that bring in around $100,000 or more. It has been mentioned that such transactions are coming from the whales and are moving back to the levels seen in May.
So it was found that all recent significant transactions of the whales are conspicuous. This is because such moves accumulated only in the past week before the price surged to $9.69.
Uniswap has been gaining massive traction lately l Source: UNIUSDT on TradingView
Alongside its price rally, Uniswap has increased its active average trader returns. It is currently up over 22.5% in its 30-day MVRV.
According to the Santiment report, the current value is well above the danger zone. Despite Uniswap’s impressive price rally, Santiment has advised investors to exercise caution with the protocol.
Featured image by Pexels, charts by TradingView.com
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