The cryptocurrency space has struggled all year as many market experts anticipate a deep bearish phase. Many cryptocurrencies have fallen from regions that were considered record highs more than a year ago. Although the market is struggling, UNFI, the native token of the Unifi Protocol DAO, has been able to gain more than 200% in the last 24 hours.

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Unifi Protocol DAO calls it a revolutionary approach to decentralized finance (DeFi). Launched in 2020, the project aims to bring modern technology to the financial world. But what exactly led to this massive upswing in these unprecedented times?

Amid a bear market, UNFI showed a massive rally (from $3.60 to $36.99), reinstating last year’s bear price action. Almost touched a new ATH. Analytical platform Santiment highlighted this rise in a June 16 tweet that read:

Metrics such as volume, age consumed and network growth witnessed an upward trend. On June 16, transaction volume reached $1.65 billion. The trading volume surpassed that of the major coins such as SOL, XRP, TRX, AVAX and LINK. Indeed, traders flocked to this protocol, as will become clear below.

Source: Santiment

Although the rise here soon met a steep decline; UNFI eventually peaked and sank as fast as it rose in a classic pump and dump behavior.

In addition, UNFI’s social volume and social dominance saw huge spikes as the rally caught the attention of many avid investors/traders. Here is a compilation of both of the above stats.

Source: Santiment

In addition, UNFI’s Age Consumed (a large number of dormant coins) also saw huge spikes. This indicated that long-term major holders were moving during the rally. They are more likely to take advantage of the pump to shut down.

To support this story, UNFI’s active deposits (the number of unique addresses that made deposits on exchanges) painted the same picture. So, further strengthen the case of exit liquidity for the flagship protocol.

In addition, the analysis platform Saniment added,

“Now we see the birth of new members of the community as UNFI changes hands.”

At press time, UNFI suffered another 5% correction as it fell back to $5.7 on CoinMarketCap.





This post Is from UNFIA [Unifi Protocol DAO] 200% rally just another case of exit liquidity

was published first on https://ambcrypto.com/is-unfis-unifi-protocol-dao-200-rally-just-another-case-of-exit-liquidity/

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