Why This Signal Means Uniswap’s Bear Run Is Almost Over
The price of Uniswap, the largest decentralized exchange by trading volume, is down roughly 35% from Q1 2023 peaks. Even so, on-chain data from Etherscan showsthat there has been a steady increase in the number of UNI holders in the past two days.
As of May 13, there were 369,646 UNI holders. Since then, the number has increased to over 370,100 as of May 26. During this time, UNI prices have remained stable but relatively high.
Based on the UNIUSDT chart, the prices have found support around $4.9. However, prices have increased by approximately 10% over the past two weeks, rising to $5.4. Although the number of UNI holders may not directly affect the prices, there is a clear correlation between the demand for UNI and the increase in token prices.
Several factors could have provided tailwinds for UNI, the governance token of Uniswap.
Apple Jail Break
On May 23, Uniswaps mobile wallet wasreleasedfrom what Uniswap Labs, the team maintaining Uniswap, said was Apple jail.
With this jailbreak, users can download the Uniswap Wallet, thats non-custodial like MetaMask.
Through this wallet, users can buy and sell various supported cryptocurrencies.
This announcement is bullish because as more users opt for Uniswap Wallet, the demand for the decentralized exchange could rise, increasing its dominance and stature.
While MetaMask remains the most dominant Ethereum and Ethereum Virtual Machine (EVM) wallet enabling the storing and trading of various tokens, even using processors like PayPal, the popularity of Uniswap could see Uniswap Wallet gnaw market share.
Presently, Uniswap Labs said their wallet could support the trading of tokens across Ethereum, Polygon, Optimism, and Arbitrum.
Uniswap To Launch On Base?
Earlier on, the Uniswap contributorsproposed the deployment of the DEX v3 on Coinbases Base.
Among supporters of this proposal is GFX Labs, one of the largest UNI holders and supporters of Uniswaps expansion to other chains. Recently, GFX Labs voted for the launch of the DEX on BNB Smart Chain (BSC) and MoonBeam.
Even so, before voting starts, the proposal will undergo a temperature check-up to gauge community support. If there is majority support, it will proceed to the next step.
Uniswap v3 is the latest iteration of the DEX, introducing the concept of concentrated liquidity for higher capital efficiency and more return on investment (ROI) for liquidity providers.
Base is a layer-2, open-source, and EVM-compatible platform by Coinbase, one of the largest cryptocurrency exchanges.
It is unclear whether the above-spurred demand for UNI, pushed the number of holders higher in the last week. However, this could suggest that the project is generating interest, which may support future token prices.
Feature Image From Canva, Chart From TradingView