Uniswap

Uniswap [UNI] Briefly Halted By Bears During Its Journey To $40

March 10, 2021 by Sahana Kiran

As the total crypto market cap was seen aiming for $2 trillion. Several coins including Bitcoin [BTC], Uniswap [UNI], Ethereum [ETH] were aiding this maturity. The entire crypto-verse exerted extreme volatility over the last couple of days. Bitcoin’s retracement pushed the asset down below $47K. Nevertheless, the king coin was back in action as it finally discovered the road back into $50K. Similarly, some of the other coins were noted rekindling bullish sentiments. A few others, however, were still residing in the bearish realm. UNI happened to be one of those coins.

At the time of writing, Uniswap [UNI] was trading for $31.61 with a 7.25% drop in the last 24-hours. Despite this daily drop, the asset managed to score gains of over 21% in the last seven days. The increase in the altcoin’s market cap helped it earn a spot on the top ten.

Uniswap [UNI] One-Hour Price Chart On Kraken

UNI has been trying to make it past $34 for a while now. The short-term price chart of the altcoin suggested that this destination could take longer than expected. The Bollinger Bands indicator announced limited volatility as the bands were quite close to each other. The Awesome Oscillator indicator affirmed that this insufficient volatility could be beneficial for the asset around this time as the bears were in its market.

Despite, this bearish momentum, the UNI market unveiled a buyers’ sentiment, the Money Flow Index indicator announced.

Uniswap [UNI] One-Day Price Chart On Kraken

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The one-day price chart of UNI affirmed that the asset could move beyond its all-time high of $34. The Parabolic SAR indicator designed dotted lines below the candlesticks. This negated the chances of a downtrend as the aforementioned line stood as a support for the asset. The MACD indicator formed a bearish crossover with the MACD line over the signal line.

The Relative Strength Index indicator announced that UNI was recovering from the overbought zone. Yet, a buyers’ sentiment was retained by the altcoin.

Uniswap Still The Top Dog, But SushiSwap Isn’t Far Behind

February 22, 2021 by Chayanika Deka

Uniswap has held the title of champion for a long time. But what started as a simple fork has evolved into a serious challenger. Yes, we are talking about SushiSwap which has emerged as a potential rival and has grown from just a clone to the third-largest decentralized exchange [DEX].

Originally popped out as a fork of Uniswap v2, SushiSwap was deemed a ‘lost cause’ by several notable market players the platform’s Co-creator ‘Chef Nomi’ dumpped all of his SUSHI tokens on the market for $14 million worth of ETH.

It was not until ‘0xMaki’, who happens to be SushiSwap’s co-founder, took the responsibility to lead the project which helped it to come back on track and exceed other notable decentralized finance [DeFi] platforms.

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Months later, the market’s most popular duo is fighting against odds to retain their respective positions. According to DeFi Pulse, Uniswap was the second-largest DEX in terms of total value locked which was $4.13 billion. SushiSwap, on the other hand, stood at the third spot as mentioned earlier with a TVL of $3.60 billion.

Uniswap Wins But SushiSwap Emerges From The Ashes

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In terms of market share, it is undoubtedly, Uniswap that has a clear lead with a whopping 54.8% trade volume while SushiSwap stands just right behind with 20.8%.

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In addition to that, it was also found that over the past three weeks, Uniswap has averaged daily volume between $700 million and $1.35 billion. Simultaneously, SushiSwap showed an average daily volume of $300 million to $700 million.

Digging deeper, it was also observed that even as Uniswap continued to process twice as much volume as its rival, the monthly trend evidenced that SushiSwap has improved its figures to become a strong competitor.

Both the platforms’ governance token has also reached new all-time highs amid the bull season. What’s even more interesting is that both the DEXs have witnessed their goals diverge despite their controversial entry into the DeFi ecosystem. And while Uniswap still takes a lead, SushiSwap’s growth in the past several months cannot be ignored.

DeFi’s Appeal Still Strong; TVL Nears $29 Billion Before Tumbling

January 28, 2021 by Chayanika Deka

Coins powering major decentralized finance [DeFi] protocols saw some strongest gains as the market hinted at a recovery earlier this week. This, in turn, prompted the total value locked [TVL] in DeFi to touch an all-time high of nearly $30 billion. on the 27th of January.

However, as Bitcoin’s price briefly slid below the support line of $30k on late Wednesday, DeFi’s TVL figures has since cooled off as it fell back below $24 billion.

DeFi Coins Caught In Hot Price Action

As for the DeFi coins’ value, except for Wrapped Bitcoin [WBTC], other top tokens have had a prolific week amassing double-digit gains.

Over the last 7-days, leading DEX Uniswap’s UNI token has recorded the most gains of nearly 80% and was valued at $14.17. TWJ had earlier reported that the protocol’s native token saw a ballistic rise in its price this bull run and emerged as one of the best-performing digital tokens in the world.

Open-source non-custodial platform Aave’s native token has also been on a bull run for the past several weeks and was priced at $279.02, at the time of writing. Its price made a run for $290 before losing steam. Despite the retracement, Aave noted a 7-day gains of 61.38%.

Compound’s governance token, COMP was the third-best performing token this week amassing gains of 23.77% over the same period of time.

DeFi Trends

According to a recent report by the blockchain company ConsenSys revealed that “the breadth of invention and adoption of DeFi kept pace in Q4 of 2020″ even as ” DeFi summer cooled off”.

There was certainly the rise of decentralized exchanges or DEXs in the last quarter of the year. The report stated that the total trade volume on DEXs in Q4 crossed a whopping $60 billion, and one of the main drivers of this activity is because Wrapped Ethereum [WETH] made it simple to swap ETH for any other ERC-20 token.

The last quarter also witnessed an increased demand from institutions and
other blockchain-based protocols to access the liquidity and economic activity on Ethereum. This can be attributed to the fact that despite its scalability issues Ethereum has managed to attract and accommodate digital assets from other blockchain protocols.

Undoubtedly, the appeal of DeFi has grown substantially despite Bitcoin’s price grabbing mainstream headlines. Many industry players are keen that the ecosystem’s adoption and utility permeating will be the main trends throughout 2021.

Uniswap [UNI] Skyrockets To ATH; Protocol Fees Surpasses Bitcoin

January 25, 2021 by Chayanika Deka

DeFi darling Uniswap Protocol’s native UNI token witnessed its price skyrocket to a fresh all-time high above $12.8. UNI went on a ballistic rise rallying more than 162% since the beginning of the year, making it one of the best-performing digital tokens in the world.

Another big bullish sign for the DeFi token was depicted by ITB’s ‘Daily New Addresses’ metric which indicated an improving network growth throughout out the past several weeks.

According to the metric, the number of newly-created addresses on the network rose from roughly 1,500 on the 22nd of January to roughly 2,800 two days later. Besides, it is also important to note that figures have seen a steady uptrend from 925 addresses per day on the 25th of December last year.

Uniswap is the fourth-largest DeFi project in the world and has also hit a new ATH in terms of total value locked in which was found to be at a whopping $3.18 billion. The UNI token, on the other hand, has a market value of more than $3.4 billion, making it the 14th largest cryptocurrency in the world.

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Uniswap’s Market Share

In terms of total DEX volume, the protocol witnessed a sharp decline. Just a week back TWJ had reported that Unsiwap continued to dominate the charts. However, despite its large gains in value, its hard fork SushiSwap saw hot price action as the team prepares to roll-out its next product offering.

According to the latest data compiled by Dune Analytics, Uniswap continued to lead the DEX numbers, and its market share as found to be at 48.8% followed by SushiSwap with 20.3% and Curve with 11.2% among others.

Uniswap Protocol Sees More Fees Than Bitcoin

On the 25th of January, the decentralized exchange reportedly generated more network fees than Bitcoin. This is the first time that a DeFi protocol has surpassed Bitcoin figures with respect to fees which depicted that user activity on the platform has intensified in the present bull run.

Furthermore, it also evidenced that even as the conversations surrounding DeFi have taken a back seat, this has, in no way. adversely affected the usage of the protocol which continued to soar.

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How Far Has Uniswap And Sushiswap Come?

January 14, 2021 by Chayanika Deka

Two weeks into 2021, where do Uniswap and Sushiswap platforms stand?

2021 started off with a bang for the cryptocurrency market and the world of decentralized finance [DeFi] was not left behind. Last year was a big year for the DeFi space and experts argue this year could be even better. Two of the most talked-about platforms in the sector were Uniswap and its clone Sushiswap whose battles kept the community occupied most part of 2020.

A Wrap up of Uniswap & Sushiswap

Uniswap has seen astonishing growth over the past several months. As per Total Value Locked [TVL] in terms of the US Dollar, the DeFi platform stood at the third position totaling a whopping $2.65 billion. Moreover, Uniswap had 70.3K Bitcoins and 2.4 million Ether locked in it.

Sushiswap, on the other hand, was positioned at the 7th spot with $1.74 billion in terms of TVL in USD with 1.6 million Ether and 46.3k Bitcoin locked in it.

Even as TVL is undoubtedly the most popular metric for measuring the growth and activity of DeFi dApps, it, however, projects an incomplete picture of the various ways the DeFi wave has intensified over the past couple of months, especially on the Ethereum network. Hence, to comprehend the activity on both the protocols, it is important to complement the TVL figures of the respective protocols with other metrics.

Important Metrics To Consider

In terms of userbase, Sushiswap has 49,816 as of the 14th of January and has witnessed a steady growth since its inception back in September 2020. It recorded a 24-hour trading volume of $163 million. Uniswap, however, boasts a much higher figure both in terms of users, which was found to be at 728,180 while its trading volume currently stood at $1.22 billion.

Moreover, Uniswap’s gas consumption has been reported to be quite high. Owing to the creation of nearly 25k different markets for trading and the massive userbase, Uniswap surpasses every other DeFi application on Ethereum with respect to gas consumption.

In terms of the total DEX volume as well, Unsiwap takes the cake home with 99.8% of the share while Sushiswap stands at 0.23%. Despite being arch-nemesis, both the projects have managed to create a niche for themselves in the market thanks to the advantages that a decentralized system in place which makes that possible. Messari’s Ryan Watkins, on a similar note, stated,

“The best part about the competition between Uniswap and SushiSwap is that it is completely transparent and trackable in real-time. No need to wait for financial filings, no need to make estimates, It’s all auditable on-chain. An open window into competition at hyper-speed.”

Along the same line, Erik Voorhees, the CEO of ShapeShift also noted,

“A public, real-time liquidity battle between two relatively decentralized crypto pools. It exists in cyberspace, nobody is forced to participate, & nobody can turn it off. This is sci-fi digital hyper-capitalism finance… and it’s coming for the banking system”

Uniswap Trading Volume Goes Wild As Numbers Hit New Peak

January 10, 2021 by Chayanika Deka

2020 saw a huge shift in focus from the grips of centralized financial sector to decentralized finance [DeFi]. Among the DEXs, which started dominating on-chain flows, Uniswap in particular, stood out.

Unsiwap Protocol went on to become one of the most prominent platforms witnessing significant traction in a very short period of time. In the latest development, the daily trading volume [7d moving average] across all asset pairs on the decentralized exchange reached an all-time high.

This was revealed by the blockchain intelligence platform, Glassnode which further noted that on an average, $780 million were traded per day in the past week. With this, the figures surpassed the previous peak that hit back in early September 2020.

DeFi went on to become one of the biggest trends last year with Unsiwap leading the DEXs. With just 10 days to this year, the DEX witnessed an astounding growth.

Uniswap Gives Stiff Competetion to Centralized Counterparts

Owing to the prolonged rally of Bitcoin and the crypto market, the net inflow of ERC-20 stablecoins to exchanges have been breaking records almost every single day.

With $2.3 billion, Binance noted most inflows of stablecoins amidst the bull run. But the decentralized exchanges were not far behind either, and have acquired a large portion of the on-chain volume along with the stablecoin inflow in this bull market.

It was none other than Uniswap that was ranked in the second with $708.6 million in the middle of the other centralized exchanges.

Other CEXs such as Huobi, OKEx, Coinbase, and others were observed to be trailing behind Uniswap with stablecoin balanced below $600 million. As COVID-19 fears gripped the world, the industry caught the bug of DeFi with crypto enthusiasts feverishly “FOMOing” on lending protocols, borrowing stablecoins and mining liquidity.

Thanks to this trend, over the past several months, Uniswap has grown to become the world’s largest decentralized exchange by volume. According to Dune Analytics, it even had more than 44% of the DEX market share, at the time of writing.

Hence, it was not just market participants that appeared to be flocking Uniswap. Stanford Blockchain Club became the latest group to verify itself as a Uniswap delegate. With this, the group surpassed a student group at rival California university UC Berkeley to become one of the largest delegates and position itself in the ninth rank.

SushiSwap and Uniswap Drama: Is SUSHI Handling More Value Than UNI?

December 18, 2020 by Chayanika Deka

Blockchain activity has been exhibiting that SushiSwap’s native SUSHI token was handling a significantly higher value than Uniswap’s UNI token. As of December 16th, SUSHI tokens were responsible for 74.35% in terms of the combined value transferred by the two tokens. UNI’s share on the other hand was found to be at a meager 25.65%.

As depicted by the above chart, Pink represents SUSHI’s share while Green represented UNI’s share.

The reason as to why the vampire protocol’s token, SUSHI has been moving more value can be attributed to the fact that SushiSwap provides greater support for liquidity mining. This is a critical process by which the token holders in the market can earn each platform’s native token.

Why is Uniswap lagging?

This has been a setback for Uniswap which ran liquidity mining starting from the period of18th of September to the 17th of November. During the two months, Uniswap distributed 20 million UNI. However, the decentralized exchange has not notified if it plans to continue this feature. Moreover, a vote to continue running liquidity mining with lower rewards has so far failed to meet quorum.

Despite this, Unsiwap’s overall trading volume far exceeds that of its clone which handles quite less volume than the former. While acknowledging that UNI held an undeniable moat in the market, DeFiance Capital’s Eugin Lee noted that new products and innovations could still disrupt it, something that the community is seeing in SUSHI currently.

The two rival protocols have every ardent follower, but according to Lee, “both can do well”. Justifying the argument, Lee went on to provide a “moat” that is possessed by both UNI and SUSHI and stated that can essentially both list tokens that centralized exchanges cannot.

In addition, the liquidity provisions in UNI and SUSHI returns an LP token collateral that can be re-staked or restructured into other farm or collaterals protocol. This is something that their centralized counterparts or even aggregators do not offer.

Furthermore, Low transaction fees and slippage among other decentralized exchanges is another plus point according to the analyst who asserted that low trans fees and slippages mean that aggregators will prioritize UNI and SUSHI since the transaction fees and slippages for both DEXs were currently the same.

In short, though market participants may prefer Uniswap as an exchange, it cannot be ignored that the market was found to be moving a larger amount of SushiSwap’s native token. And considering the nascency of the space, there is enough space in the industry to accommodate both and let time decide what drives up the appeal of both the tokens in the coming days.

DeFi Platform Uniswap Bears A Loss as SushiSwap Adopts a Clever Strategy

November 19, 2020 by Chayanika Deka

The decentralized finance [DeFi] realm has taken a back seat after an impressive streak. DeFi’s darling, Uniswap for instance was struggling to retain its position as the world’s largest decentralized exchange [DEX]. This was evident from its abrupt drop in terms of the total value locked [USD] in the protocol.

Since registering $2.71 billion on the 17th of November to drastically falling by more than 5% as the TVL figures dropped to $1.19 billion just two days later, trouble seemed to have been brewing for Uniswap.

Meanwhile, its vampire clone SushiSwap has significantly increased its TVL and is aggressively pursuing additional liquidity as revealed in the latest insights published by blockchain analytic platform Santiment. On the 17th of November, SushiSwap’s TVL rose from $406.7 million and $1.052 billion in a period of less than 48 hours posting an increase of nearly 160%.

In an interesting turn of events, Uniswap’s fall and its rival’s rise coincided with the conclusion of its UNI liquidity rewards program on the same day.

As Uniswap’s liquidity took a massive hit, the UNI token holders have commenced the process of voting for a new governance proposal that aimed to reestablish rewards in the form of the native UNI tokens for liquidity providers.

Uniswap-SushiSwap Battle Goes On

Advanced by Audius’ Strategy Lead, Cooper Turley, this proposal essentially seeks to cuts the amount of UNI rewards in half compared to the earlier program. With this, the new proposal would see 1.25 million UNI allocated to each pool monthly for a period of two months that corresponds to 10 million UNI tokens total, which in turn makes up for approximately 4.6% of the native token’s current circulating supply.

This essentially depicted that Sushiswap has once again extracted Uniswap’s liquidity yet again. Liquidity providers [LPs] from the latter jumped ship after the native token’s liquidity mining rewards ended and are moving to Sushiswap for SUSHI rewards.

Previously, the four pairs on Uniswap, which were DAI-ETH, USDT-ETH, USDC-ETH, and WBTC-ETH basically grabbed the fees from the AMM desk and UNI token rewards. However, following the conclusion of the incentives, LPs exited the ecosystem in search of more profits. Taking an advantage of which, Sushiswap announced liquidity mining rewards just a day before Uniswap’s expiry.

Uniswap’s UNI Could Head For A Recovery Despite Capitulation

November 8, 2020 by Chayanika Deka

The tokens of prominent decentralized finance [DeFi] projects have witnessed a dull price movement so far. Despite their initial success, owing to the massive FOMO that drove the token’s valuations, currently, signs of recovery looked bleak.

Uniswap’s native token, UNI has also seen massive capitulation over the course of several weeks which has triggered a significant decline. However, according to the blockchain intelligence platform, Santiment, an articulated Uniswap holders capitulation may build nice reversal momentum.

Uniswap’s UNI Token Gears For Bullish Reversal

MVRV Opportunity/Danger Zones essentially relies on average trader returns from various timeframes to determine danger zones or sell points and opportunity zones or buy points. During times when average trader returns are low, MVRV views the metric as a bullish signal. According to the latest Santiment charts, UNI has a very low average trader returns, this was indicative of a low-risk opportunity to start entry and thus push the price higher.

A Potential Volatility Lurks in the Corner

According to the latest insight by Santiment, UNI’s saw the greatest spike ever, in terms of Token Age Consumed. The metric suggests the number of tokens/coins changing addresses on a particular date, multiplied by the days since it last moved. In short, it provides data on the movement of dormant coins. For UNI, the spike meant that a significant amount of previously dormant tokens/coins were moved either between exchanges or wallets.

This pointed towards incoming volatility within the Uniswap market.

UNI’s Price Takes A Hit; But Metrics For Holders Appear Bullish

Additionally, the count for the non-airdrop holders has increased over time. This was a positive indicator signaling a rising interest in the coin. Over the past 24-hours, UNI was down by 8.74% which drove its coin to $2.64. However, UNI appears to have bottomed out at $1.79 on the 5th of November. If this narrative holds true in the coming days, UNI could witness a surge to its critical resistance of $3.28.

TVL in DeFi Nears Fresh ATH of $13 Billion Despite the Decline in DEX Volume

October 25, 2020 by Chayanika Deka

2020 has been a success story for the decentralized finance [DeFi] ecosystem. DeFi has been around for a couple of years but it gained massive traction in the second and third quarters of this year and the overwhelming rise was reminiscent of the previous ICO boom.

Adding yet another feather to its cap, the total value locked [TVL] in DeFi surged to a whopping $12.58 billion on the 25th of October. This surge coincided with the latest bullish price action of the cryptocurrencies which triggered optimism in the space. Uniswap with a TVL of $2.68 billion and dominated the charts by 21.65%. The popular DEX was followed by Maker with $2.13 billion, WBTC with $1.44 billion, Aave $1.13 billion, and Compound with $1.08 billion in TVL respectively.

Ethereum [ETH] locked in DeFi also spiked as the altcoin surged above the $400-level more than a month later. According to DeFi Pulse, the figure was recorded to be at 9.008 million Ether at the time of writing. BTC and WBTC locked in also noted a mild surge to 171.2K.

What has further legitimized the DeFi space is the foray of some of the big names in the crypto industry. The investment giant, Pantera Capital recently disclosed that its Digital Asset Fund intended to invest more heavily into DeFi assets than the rest of the market.

But could DeFi lose steam?

Talking about the potential capabilities of DeFi instruments, Chris Burniske from venture capital firm Placeholder had recently noted,

“If you think DeFi will have a smaller impact on ETH than ICOs, you aren’t paying attention. The ICO boom showcased Ethereum’s ability to perform one financial service: early-stage capital formation. DeFi will showcase Ethereum’s ability to perform all financial services.”

Bitcoin has started to show signs of strength over other cryptocurrencies as its dominance rose to 61%. On the other hand, Ethereum has seen its popularity grow throughout 2020 due to the rise of DeFi. Having said that, skepticism still exists in terms of outlook and long-term sustainability of DeFi. In addition, trading volumes on Ethereum-based decentralized exchanges have taken a plunge this month and was down by 44% in the past 30 days.