Uniswap [UNI] took a hit just like any other cryptocurrency. But its market presence as a decentralized exchange may have a little more in store for the protocol’s token.
Uniswap V3 for the win?
According to a report, V3 appears to register higher return on fees for passive LPs that outperform comparable v2 positions on average by 54%.
At various fee levels, range-bound stablecoin pairs, V3 outperformed V2 by various margins. For tier one, 5, 30 and 100-bp, V3 outperformed V2 by 160%, 68%, 16% and 80%, respectively.
Although it has been over a year since its launch, V3 has achieved its goal of outperforming its predecessor.
This could counterbalance the bearishness investors have been experiencing this week. It resulted in a 30% crash.
One of the biggest advantages that UNI holders have in this regard is its dominance as DEX and the demand that DeFi and similar exchanges have in the market.
However, it does not completely rule out the panic and fear investors may have after the crash, and the same is evident in their on-chain behavior.
In addition, more than a million UNI worth $3 million were sold to exchanges in the past 48 hours.
Although the candlestick was in the green on June 14, marking a 2.5% gain, it still failed to cover the losses that have occurred since May. For example, on June 13, investors who moved their UNI holding were exposed to losses that amounted to more than $17 million.
In addition to UNI being the subject of trades, many other tokens were also traded during June 14, as can be seen from Uniswap’s on-chain data.
Total asset volume moving around June 13 surpassed the highest recorded one-day volume in a month.
Within 24 hours, more than $4.4 billion in volume was registered on Uniswap, proving that investor panic was not limited to just the spot market.
In the case of Uniswap as an asset, it may need to remain dependent on the broader market indications. This is because the aforementioned developments have not done much for it other than using DEX.
This post Could Uniswap V3’s surprising performance offset recent losses?
was published first on https://ambcrypto.com/can-uniswap-v3s-transcending-performance-invalidate-recent-losses/