According to Santiment, the Uniswap decentralized exchange has not experienced any kind of recovery. Santiment recently tweeted that Uniswap is one of the outliers in the measure of active addresses, indicating that the DEX’s native UNI token underperforms relative to other cryptocurrencies.

According to the data, the number of working IP addresses last increased when Uniswap introduced its NFT marketplace aggregator following its acquisition of pioneer NFT marketplace aggregator Genie.

The decline in direction may indicate that investors and traders have lost interest in the exchange.

Chart: TradingView

Image: Forkast

Negative market sentiment

In short, Uniswap’s network activity has been very unpleasant for investors in its native token. At press time, UNI is down 2.4% with subsequent declines on the weekly, biweekly and monthly timeframes. This negative market sentiment can be seen on-chain.

In the time after its launch in November, the volume of NFT transactions processed by the Uniswap market aggregator dropped significantly, as reported by Dune Analytics.

The numbers show that there were only 39 transactions recorded today, up from 446 on November 30. That’s a 91.25% drop.

This contradicts what Uniswap Labs COO Mary-Catherin “MC” Lader told Fortune in a interview. He stated that the underlying technology of NFTs is still in its infancy. Other technology advocates have used this reasoning.

Whether or not the NFT business is in its infancy, the data indicates that it is barely alive, with few customers and sellers, as evidenced by large declines in trading volume and sales.

UNI Total Market Capitalization at $4 Billion | Chart:

Incoming Headwinds

Apart from the UNI NFT issuance, the market has yet to recover from the FTX crash. The recent rise in interest rates by the US Federal Reserve adds to the tension.

With large cryptocurrencies also seeing declines in value, UNI’s long-term prospects may worsen. In terms of prices, the token seems to find support in the $5.2 range. What is interesting is that UNI has a strong correlation with Bitcoin.

This means that when Bitcoin appreciates, UNI will too. The market will recover as institutional interest in cryptocurrencies and digital assets in general grows. Short-term UNI bulls can take advantage at the $6.5 price level.

However, investors and traders should remain cautious as further interest rate hikes by the central bank could send the market down.

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