Uniswap (UNI) also posted a significant price drop of 7.71% in the last 24 hours, further increasing its value decrease during the previous week to 11.3%.
Total Value Locked (TVL) on the protocol also rose to $4.959 billion from a rise of $35 million. Uniswap continues to be the leading decentralized exchange (DEX), surpassing others such as Raydium, despite decreasing.
Effect of Spot Traders
Recent statistics indicate that UNI tokens worth approximately $12.28 million were purchased by spot buyers, amounting to about 2.1 million tokens. The demand of spot buyers has become dominant in driving prices, countering selling by institutional investors, which sold some 980,580 UNI tokens worth some $5.73 million. This move is an indication that buyers have confidence in the rebound potential of Uniswap.
Future Outlook
While the current market is challenging, some of the key indications are that UNI can turn around. The Open Interest Weighted Funding Rate is still in positive territory with longs outnumbering shorts.
Further, a 20% hike in decentralized exchange trades in the past month indicates steady interest which, if furthered by better market conditions, can induce the rally.
With all these issues afflicting Uniswap, the loyalty of spot traders can be the clue to reviving it.
