The past few weeks have seen a positive turn in the flow of events within the cryptocurrency market, especially for Uniswap. Many of the crypto assets are gaining more value in their prices. This is reversed after the severe crypto winter that puts a lot of protocol on edge.
Most witnessed drastic price drops of up to 50% since January 2022. The latest chaos in the crypto space was better imagined than described.
Additionally, the collapse of the Terra algorithmic stablecoin and its native token, LUNA, increased the downtrend. Several investors lost millions of dollars, creating tension throughout the crypto industry. Some crypto service companies lost their footing as they struggled to keep their ship afloat.
However, some of them still went bankrupt with most of their depositors’ funds locked on their platforms. Some industry participants are beginning to lose confidence in digital assets as fear, uncertainty and doubt gradually creep in.
Everything seems to be going progressively well for Uniswap as its native token, UNI, increases in price value. The strength of its price increase has put Uniswap in the ranking by market capitalization among the top 15 cryptocurrencies.
Furthermore, the Ethereum-based decentralized protocol has seen a significant increase in value, reaching 150% in the last seven weeks.
According to data from Santimento, an on-chain analytics firm, there has been a further substantial whale buildup of UNI tokens. This explains its recent price rally as well as the increasing address activity.
Santiment reported that Uniswap’s daily active addresses have risen to over 1,100. With strong address activity present on the network, the protocol has the potential to sustain current price action.
Uniswap Whale Directions Driving Positive Moves
Uniswap whale addresses have shown positive movement since the May 2022 crypto crash. The addresses have accumulated large amounts of UNI tokens varying by massive percentages. In their performance, whale addresses containing up to 100 thousand to 1 million UNI tokens have seen a massive accumulation in the last two weeks.
Additionally, Santiment noted that the level of transactions they consider prominent are those that take around $100,000 or more. She mentioned that such trades are for the whales and retrace to views at May levels.
So, he stated that all the recent significant transactions of the whales are remarkable. This is because such movements accumulated last week before the price rose to $9.69.
In addition to its price rally, Uniswap has increased the average returns of its active traders. It currently posted over 22.5% on its 30-day MVRV.
According to the Santiment report, the current value is clearly above the danger zone. Despite Uniswap’s impressive price rally, Santiment has advised investors to be careful with the protocol.
Featured image from Pexels, charts from TradingView.com