- Uniswap, UNI’s native protocol, has become the dominant decentralized exchange (DEX), outperforming competitors like Raydium and others.
- Large holders have continued to sell UNI. However, accumulation by spot traders has helped keep the price relatively stable.
Uniswap [UNI] has remained heavily bearish in the past 24 hours. The asset declined by 7.71% in the market, extending its past week’s losses to 11.297%.
A wider analysis of market activity suggests that the current bearish trend may soon reverse.
Key indicators—such as increasing liquidity flow, strong support from spot traders, and rising dominance of decentralized exchanges (DEXs)—point to a growing bullish momentum.
UNI gains dominance, but sellers stay strong
The last 24 hours have been favorable for Uniswap, as it has become the leading decentralized exchange (DEX), overtaking Raydium.
This growth and dominance in the market followed a surge in Uniswap’s Total Value Locked (TVL), which rose from $4.924 billion to $4.959 billion—a $35 million increase. Meanwhile, Raydium’s TVL declined by $52 million.
Source: DeFiLlama
Total Value Locked (TVL) represents the valuation of blockchain protocols based on the amount of their native tokens that have been locked.
Despite a recent increase in TVL over the past 24 hours, UNI’s price decline has been driven by broader market trends.
Looking at a wider timeframe, TVL has followed a downward trajectory over the past three days, with $219 million worth of UNI sold.
Additionally, liquidity outflows have been accompanied by a steady drop in trading volume. Since reaching a high of $3.504 billion on the 15th of May, trading volume has fallen by more than $600 million, likely due to investors exiting the market.
Source: IntoTheBlock
Large holders have also contributed to the recent price tumble. In the past day, this group of investors realized 980,580 UNI worth approximately $5.73 million.
This mounting selling pressure should have caused a steeper price decline, but bulls remain active in the market.
Who is keeping UNI’s price intact?
The bulls in the market have continued to buy UNI despite the selling pressure.
Spot traders have been a major contributor to UNI’s price stability, preventing it from witnessing a major decline. In the past 24 hours, they bought 2.1 million UNI worth $12.28 million.
Source: IntoTheBlock
That’s not all, futures traders have continued to place long trades despite the odds against a price move upward.
To put this in perspective, some traders who longed UNI in the past 24 hours lost $1.05 million, while short traders lost just $25,600.
Source: Coinglass
Yet, the Open Interest Weighted Funding Rate, which compares Open Interest and the Funding Rate to determine market direction, has continued to stay in bullish territory.
At the time of writing, this metric had a reading of 0.0054%. Although it is trending downward, it remains in positive territory, confirming that there are more long positions than shorts.
What role will the ecosystem performance play?
Decentralized exchanges have experienced a significant 20% increase in engagement over the past month. This upward trend continued into the past week, but the last 24 hours mark the first instance of declining activity.
Despite this short-term dip, the overall market sentiment remains bullish.
If traders and investors maintain their interest in UNI and actively participate in the protocol, the asset is likely to see a rally.
