According to Santiment, the decentralized exchange Uniswap has not seen any recovery. Santiment recently tweeted that Uniswap is one of the outliers when measuring active addresses, indicating that DEX’s native token UNI is underperforming compared to other cryptocurrencies.
According to the data, the number of working IP addresses last increased when Uniswap launched its NFT market aggregator after acquiring Genie, the pioneering NFT market aggregator.
The decrease in address may indicate that investors and traders have lost interest in the stock market.
đź“Š Several #altcoins are seeing big spikes in address activity and dormant wallets waking up to move their funds now. Others get stuck in the mud and are more likely to fall behind. Read our brief on $YFI, $REN and $UNI. https://t.co/MI1HQaLUpy pic.twitter.com/sRSyiDvqVe
— Santiment (@santimentfeed) December 15, 2022
Image: Discard
Negative market sentiment
In summary, Uniswap’s network activity has been very uncomfortable for investors on its native token. As of this writing, UNI is down 2.4% with subsequent declines on the weekly, bi-weekly and monthly timescales. This negative market sentiment can be seen on the chain.
In the period following the November release, the volume of NFT transactions processed by Uniswap’s marketplace aggregator has decreased significantly, Dune Analytics reports.
The figures show that there were only 39 registered transactions today, down from 446 on November 30th. That’s a drop of 91.25%.
This contradicts what Uniswap Labs COO Mary-Catherin “MC” Lader told Fortune in an interview. She explained that the technology behind NFTs is still in its infancy. Other proponents of the technology have taken advantage of this reasoning.
Whether the NFT business is in its infancy or not, data shows that it is barely alive, with few customers and sellers, reflected in large drops in trading volume and sales.
UNI total market cap at $4 billion | Chart: TradingView.com
Incoming headwind
UNI NFT issues aside, the market has yet to recover from the FTX collapse. The recent interest rate hike by the US Federal Reserve is adding to the burden.
With major cryptocurrencies also declining in value, UNI’s long-term prospects could deteriorate. In terms of pricing, the token appears to be finding support in the $5.2 area. What is interesting is that UNI has a strong correlation with Bitcoin.
That means UNI will do it too if bitcoin appreciates in value. The market will recover as institutional interest in cryptocurrencies and digital assets in general grows. Short-term UNI bulls can benefit at the $6.5 price level.
Nonetheless, investors and traders should remain cautious as further rate hikes by the central bank could lead to market declines.
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