|
Getting your Trinity Audio player ready...
|
Uniswap’s [UNI] token is currently navigating a challenging period, marked by a persistent downtrend. Over the past 24 hours, the token experienced a further 2.7% decline, signaling a lack of confidence among holders. This recent sell-off appears to be fueled by market participants’ apprehension regarding the Uniswap team’s recent fund movements.
Uniswap Team’s Fund Transfers Spark Market Disinterest
Recent on-chain data from SpotOnChain reveals that an address linked to the Uniswap team deposited a substantial 9 million UNI tokens, valued at $47.5 million, into Coinbase Prime. This follows a trend over the past six days, where a total of $60.99 million in UNI was moved by four similar wallets to the same OTC platform. Coinbase Prime is typically utilized by institutional investors for large over-the-counter trades, designed to minimize market impact and slippage. While such transfers often indicate growing institutional interest, the market’s reaction to these movements has been notably lukewarm.
Another wallet linked to @Uniswap just deposited 9M $UNI ($47.5M) to #CoinbasePrime after 4.58 years of dormancy!
— Spot On Chain (@spotonchain) April 30, 2025
In the last 6 days, four wallets connected to the project have transferred 19.21M $UNI ($108.5M) to Coinbase Prime, at an average price of $5.65.
For more $UNI… https://t.co/9tau0ztsAe pic.twitter.com/jwbzRK0475
Mounting Selling Pressure from Large Holders and Spot Traders
Despite the potential for increased institutional exposure, market participants have largely reacted with disinterest, evidenced by continued selling pressure. Data from IntoTheBlock indicates a significant increase in selling activity among large traders, who have offloaded 515,740 UNI tokens, worth $2.74 million.
This net outflow highlights the prevailing bearish sentiment among this influential group. Adding to the downward pressure, spot market traders have followed suit, liquidating a substantial $14.98 million worth of UNI in just seven days. This marks one of the highest weekly sell-offs recorded, underscoring the current lack of enthusiasm for the token in the spot market.
Contrasting Bullish Signals Emerge from TVL Growth
Interestingly, while selling pressure weighs on UNI’s price, a more optimistic picture emerges from Uniswap’s Total Value Locked (TVL). Since April 26th, the protocol’s TVL has witnessed a significant surge of $66 million, reaching an impressive $4.009 billion. This growth in TVL suggests continued confidence in the Uniswap protocol itself, despite the negative price action of its native token. Analysis of liquidation heatmaps indicates that UNI is currently at a crucial juncture.
Depending on whether the price initially moves higher or lower, it could gather the necessary momentum to subsequently overcome resistance or break through support levels. This sets the stage for a potentially volatile period as the market grapples with the conflicting signals of selling pressure and robust protocol growth.
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.
Also Read: Solana, Uniswap, and Consensys Donated to Donald Trump Before SEC Dropped Investigations
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
