- Whales depositing and withdrawing significant amounts of UNI can positively impact the price of the token.
- UNI’s price increase, declining network growth, and the imminent release of Uniswap v4 shaped the outlook.
Uniswap [UNI] has been one of the most dominant DEXs in the DeFi sector in recent years. Despite its growing dominance, its token has seen massive amounts of price swings and has fallen victim to the ebb and flow of the crypto market.
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Whales surround UNI
However, UNI could see a price increase due to recent whale behavior. According to Look at chaina sizable whale made a deposit of 2.57 million Tether [USDT] to Binance [BNB] and subsequently withdrew 467,825 UNI tokens, worth approximately $2.48 million.
This interest from whales could positively benefit UNI’s price. At the time of writing, UNI was trading at $5.44 as it grew by 50% after testing the $3.61 support level on June 10.
The token’s price surpassed previous lower highs marked by the bearish price action leading up to the $3,613 level. Much of this price increase can be attributed to whale behavior.
The price has consistently shown higher highs and higher lows since the start of growth after June 10, enough to establish a trend break. It remains to be seen if the price will surpass the $5.67 resistance level and continue to grow.
Source: Trade View
The declining network growth of the UNI token suggested that new addresses continued to lose interest in UNI. So it could be old holders driving up the price by accumulating more UNI. One reason for this could be the hype surrounding Uniswap’s v4.
Source: Sentiment
Anticipation for v4 is growing
According to Hayden, the founder of Uniswap, the gas price required to deploy pools of liquidity on Uniswap would drop by 99%. In addition to cost savings, Uniswap V4 will also reintroduce support for native ETH.
Realistic or not, here is UNI’s market cap in terms of BTC
These announcements and other updates may encourage existing addresses to purchase more UNI. They can also attract new users to the Uniswap ecosystem.
At the time of writing, active users on the network were declining. According to data from Token Terminal, the number of active addresses is down 16.1% over the past month. As a result, the fees generated by the Uniswap protocol fell by 55.7% over the same period.
Source: Token Terminal
