Despite the bear market Uniswap is gaining significant traction, what is the reality?

The past few weeks have brought a positive turn to the flow of events in the cryptocurrency market, especially for Uniswap. Many crypto assets are gaining value in their prices. This is reversing after the severe crypto winter that puts a lot of protocol on the edge.

Most have witnessed drastic price drops of up to 50% since January 2022. The latest mayhem in the crypto space was better imagined than described.

Additionally, the collapse of the algorithmic stablecoin Terra and its native token, LUNA, accelerated the downward trend. Several investors have lost millions of dollars, creating tension across the crypto industry. Some crypto service companies have been thrown off balance as they struggle to be their ship afloat.

However, a few of them went bankrupt anyway, with most of their depositors’ funds locked on their platforms. Some industry players are beginning to lose faith in digital assets as fear, uncertainty and doubt gradually take hold.

Everything seems to be gradually going well for Uniswap, as its native token, UNI, increases its price value. The strength of its price rise has placed Uniswap in the rankings by market capitalization among the top 15 cryptocurrencies.

Additionally, the Ethereum-based decentralized protocol has seen a significant increase in value, reaching 150% in the past seven weeks.

Uniswap sentiment activity l Source: Sentiment

According to data from Santiment, an on-chain analytics company, there has been an increased and substantial accumulation of UNI tokens. This explains its recent price rally as well as the increase in address activity.

Santiment reported that Uniswap’s daily active addresses have grown to over 1,100. With the presence of strong address activity on the network, the protocol has the potential to support the current price action.

Uniswap Whale Addresses Drives Positive Movements

Uniswap whale addresses have shown a positive development since the May 2022 crypto crash. The addresses have accumulated large amounts of UNI tokens ranging in huge percentages. In their performance, whale addresses containing up to 100,000 to 1 million UNI tokens have undergone a massive accumulation over the past two weeks.

Additionally, Santiment noted that the level of trades they deem important is that of around $100,000 or more. He mentioned that these transactions originated from the whales and traced back to those seen at May levels.

Thus, he said that all the recent large transactions of the whales are noticeable. Indeed, these moves built up over the past week before the price surged to $9.69.

Despite the bear market Uniswap is gaining significant traction, what is the reality?
Uniswap has recently gained popularity l Source: UNIUSDT on TradingView

Along with its price hike, Uniswap has increased its active average returns from traders. It has currently recorded over 22.5% in its 30-day MVRV.

According to Santiment’s report, the current value is clearly above the danger zone. Despite Uniswap’s impressive price rally, Santiment advised investors to tread carefully with the protocol.

Featured image from Pexels, charts from TradingView.com

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