Despite a difficult start to the week, Uniswap has managed to stay on track of its uptrend. This is partly due to the growing whale activity on Uniswap this month.
Since July 8, wallets with between 10,000 and one million UNI coins have added 10.74 million more UNI tokens to their holdings. This translates to $74.6 million in just the past 17 days.
A flat start to the week
Uniswap is one of the rare projects showing growth in an otherwise flat start to the week in crypto. As reported by HolinessSushiswap was the only other major chain to show signs of growth on July 26.
Uniswap’s growth in rating is also a result of the recent rise in DeFi. As noted earlier, Uniswap became the leading DeFi DEX in terms of Total Value Locked (TVL).
It was supposed to eclipse Curve, which led the DEXs for more than a year through May 2022.
In early May, Uniswap’s TVL is down 24% compared to Curve’s 69% decline. This indicates massive withdrawals on Curve during the crash, which ultimately helped Uniswap.
What is the heat?
According to a recent Messari update, the UNI holding community is divided over Uniswap’s latest tariff proposal. Under the proposal, a portion of the trading costs will go to Uniswap’s treasury for development and security.
The community is divided on how to design and implement “fee switch”.
The proposal in question would allow fees for two V3 pools, namely “USDC/ETH (0.05%)” and “USDC/USDT (0.01%).
The protocol fee would be 10% of the trading costs generated and at current volumes would be approximately $20,000 to $40,000 per day to Uniswap’s Treasury.
That said, current market conditions are not favorable for such a move for Uniswap and other pressing concerns should now be considered.
While the holders remain divided, there is renewed positivity after the recent accumulation of whales and price increases. The UNI token still remains stuck at eighteen in the crypto rankings by market cap, trading at $6.62 at the time of writing.
This post Why Uniswap rose ‘into an otherwise slightly declining Monday’
was published first on https://ambcrypto.com/why-uniswap-was-rising-in-an-otherwise-slightly-down-monday/