.png){kind=logo}
- Insights
- Cryptocurrencies
- Gadgets
- Stocks
- White Papers
- Reports
- Industry
- Geography
- Insights
- Cryptocurrencies
- Gadgets
- Stocks
- White Papers
- Reports
- Industry
- Geography
Uniswap-born crypto, UNI has seen a surge rising back above the $10 mark and now trading at $11.12. This is a 17.70% increase in the last 24 hours. This surge put UNI among the top gainers with a traded volume of $890 million in the last 24 hours which was a result of a massive 496% increase. This performance has helped boost the market cap to around $6.65 billion as of writing and pushing it to the 19th largest crypto asset by market cap.
The decentralized exchange (DEX) Uniswap built on the Ethereum blockchain uses liquidity pools to hold asset pairs and facilitating trading without the need for traditional market makers. UNI tokens serve dual purposes within the ecosystem, acting as both a reward mechanism and a governance token and also giving holders a say in key decisions.
One such decision was the much anticipated vote on UNI staking and delegation rewards which was set to push the DEX towards activating its "fee switch." This mechanism is designed to incentivize the token holders who stake and delegate their UNI tokens.
However the Uniswap Foundation recently postponed this vote. According to Erin Koen who is the lead official overseeing the Uniswap DAO governance forum, a stakeholder raised concerns that prompted a more thorough review of the proposal which is critical given the sensitive and irreversible nature of the proposed changes.
Uniswap saw a massive price surge at the first month of the year. Starting at $5.531 on Jan 22nd, it soared to a high of $17.033 by mid of March marking a 207% increase in just 67 days. However it then retreated by 65% by falling back to $5.531. Since this low UNI has been bullish, breaking past previous structures and forming new higher highs. On June 3rd the price retested a previously broken out ascending trendline and rallied the next day 4th June and faced rejection at $11.7 resistance.
Deep diving into technical indicators and metrics, the Relative Strength Index which is currently at 61 shows the bullish momentum that has gained in the last 24 hours. This indicator further suggestes that while UNI is not yet overbought, it is approaching higher momentum levels which might result to a price drop in the near term.
The Bollinger Bands on UNI have also widened indicating increased market volatility. By this expansion, you should expect larger price fluctuations which could lead to new trading opportunities.
On-chain metrics from Santiment also show that the total open interest in USD has surged from $60 million to $110 million in the last 24 hours correlating positively with the price increase. These total open interest represent the cumulative contracts that remain open and not yet settled, and a rise in this metric often indicates heightened trader commitment and potential bullish sentiment.
On the other hand the development activity metric has seen a decline. This metric which tracks the 'pure' development efforts on the blockchain can be a long term indicator of a project health and innovation level. Therefore this decrease might suggest a slowdown in development activities which could be a concern for future price gains and functionality enhancements.
Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
