Key Takeaways:
- Uniswap’s UNI token surged 14% as active holders and treasury value hit new highs, signaling strong fundamentals despite low DEX volume.
- Spot traders remain cautious, but bullish sentiment in the derivatives market—with rising funding rates—suggests confidence in UNI’s continued upside.
Uniswap (UNI) has staged a strong comeback, rising 14% in the past 24 hours and erasing its monthly losses, according to data from CoinMarketCap. The rally has pushed UNI back into positive territory, buoyed by a mix of growing on-chain activity, treasury strength, and bullish sentiment in the derivatives market.
At the core of this resurgence is a key milestone: UNI now boasts over 370,000 holders, marking a new all-time high. This expanding user base reflects growing interest and network participation. In addition, Uniswap’s treasury value has climbed to $5.6 million, underscoring the protocol’s financial resilience and ability to fund development amid market volatility.
However, not all indicators support a sustained rally. Data from DeFiLlama shows that Uniswap’s Total Value Locked (TVL) has only inched up slightly, from $4.847 billion to $4.883 billion in early June. This modest increase in liquidity suggests that many investors remain hesitant to lock assets into the protocol, possibly favoring Centralized Exchanges (CEXs) for their flexibility in navigating market swings.
Adding to the concerns is the decline in Decentralized Exchange (DEX) volume, where UNI spot trading has dropped to just $1 billion. This dip implies that despite the price spike, spot market participants continue to offload UNI, adding downward pressure.
Yet, UNI’s derivatives data paints a different picture. Funding rates have surged to 0.0044%, signaling that long-position holders are paying a premium to maintain their trades. This indicates that bullish traders remain confident, even as spot market sentiment softens.
Overall, Uniswap’s price rally is being driven more by long-term conviction in its protocol and trader optimism than by immediate liquidity support. While rising holder count and a strong treasury highlight solid fundamentals, the lack of robust liquidity inflows and DEX volume raise questions about the sustainability of the current surge.
Can UNI maintain momentum? That likely depends on whether increased on-chain activity can eventually spill over into stronger liquidity participation—without which, the rally could prove short-lived.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
