Uniswap’s [UNI] Unichain has emerged as the fastest-growing Ethereum Virtual Machine (EVM) chain by transaction growth, with a notable 32% increase in activity. This uptick comes despite a 4.1% decline in active addresses, signaling that users are transacting more frequently—a divergence that could point to increased protocol efficiency or attractive new incentives.
At the time of writing, UNI is trading at $7.58, up 5.33% in the last 24 hours. This price action reflects rising investor optimism, possibly driven by intensified on-chain usage. The question, however, is whether this momentum is sustainable or merely speculative.
Can Gasless UniswapX Limit Orders Fuel the Next UNI Rally?
Much of the current enthusiasm centers around the recent launch of UniswapX’s gasless limit orders. These innovative trading features allow users to place buy and sell orders with no gas fees, while tapping into both on-chain and off-chain liquidity to ensure optimal pricing.
This functionality reduces trading friction and appeals to retail and institutional traders alike. If adoption scales, Uniswap could solidify its position as a dominant decentralized exchange (DEX), translating to greater utility and demand for UNI. The move aligns with Uniswap’s broader push for capital-efficient innovations, potentially drawing more users amid a competitive DEX landscape.
Whale Activity Sends Mixed Signals
Despite the recent price rally, UNI’s large holder activity paints a more cautious picture. Over the past 30 days, whale netflows have plummeted by 93%, and the 90-day data reveals an even sharper decline of over 150%. These figures suggest strategic exits or profit-taking by major investors, hinting at lingering uncertainty.
However, exchange flow metrics offer a counterbalance. UNI’s exchange outflows have surged 50.6% while inflows dropped 19.5%, indicating that investors are moving tokens to self-custody or staking platforms. This behavior typically reduces sell pressure and is often a precursor to bullish price movements.
Breakout Zone or Bull Trap?
Technical indicators suggest that UNI is approaching a critical juncture. Binance’s liquidation heatmap shows clusters of short positions between $7.6 and $7.8. If the price breaks above these levels, it could trigger a cascade of short liquidations, pushing UNI higher in a momentum-driven rally.
Adding to the bullish case, Open Interest-Weighted Funding Rates remain positive, currently sitting at +0.0062%. This suggests a growing long bias among derivatives traders, yet not one fueled by excessive leverage—an encouraging sign for rally sustainability.
Also Read: Uniswap Surges 14%: Can UNI Hold Gains Amid Liquidity Concerns?
Unichain’s transaction surge and UniswapX’s upgrade mark promising developments, but UNI still faces resistance between $7.6 and $7.8. Large holder hesitation adds a layer of uncertainty, even as exchange trends hint at reduced sell pressure.
For UNI to extend its rally, bulls must convert increased user activity into lasting investor conviction. A decisive breakout above resistance levels, coupled with continued on-chain strength, could cement UNI’s next leg up. Until then, cautious optimism prevails.
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.
