#Uniswap (UNI) has been one of the most dominant DEXs in the DeFi industry for the last few years. Despite its growing dominance, its token has seen massive price fluctuations and has fallen victim to the ebb and flow of the crypto market.
Whales Head to UNI
However, UNI may also experience an increase in its price due to recent whale behavior. According to Lookonchain, a major whale deposited 2.57 million #Tether (USDT) to Binance (BNB), followed by a withdrawal of 467,825 UNI tokens worth approximately $2.48 million.
This interest of whales may have a positive impact on the price of UNI. As of press time, UNI was trading at $5.44, up 50% after testing the $3.61 support level on June 10. The token price has surpassed the previous lower highs marked by the previous bearish price action at $3,613. Much of this increase in price can be attributed to the behavior of whales.
The price has consistently exhibited higher highs and higher lows since it started rising after June 10, which was enough to create a change in trend. It remains to be seen whether the price will surpass the $5.67 resistance level and continue to grow further.
The declining network growth of the #UNI token showed that new addresses continue to lose interest in UNI. Therefore, it may be the old owners who drive the price by accumulating more UNI. One reason for the same may be the excitement around Uniswap's v4.
Uniswap Comments and Latest Status
According to Uniswap founder Hayden, the gas price required to distribute liquidity pools on Uniswap will decrease by 99%. In addition to cost savings, Uniswap V4 will also reintroduce native ETH support.
These announcements and other updates may encourage existing addresses to purchase more UNI. It can also attract new users to the Uniswap ecosystem.
At the time of writing, active users on the network were decreasing. According to data from Token Terminal, the number of active addresses dropped by 16.1% last month. Therefore, fees generated by the Uniswap protocol dropped by 55.7% during the same period.
