- The Uniswap network experiences a sudden drop in volume as the bulls take a breather.
- Take stock of UNI’s latest demand, where it’s headed and what to expect.
Now that the crypto market has performed overall bullish year to date, it is important to assess the sources of demand. The demand for spot and derivatives has been very active, but more importantly, the DeFi segment has also performed very well.
uniswapone of the largest DeFi Platforms around the world experienced healthy activity amid the market recovery. However, some observations may indicate that a major change is about to occur.
For example, Uniswap’s network growth has just dipped from its 4-week average range and is now at its lowest level seen during the same period.
The above overview can provide an idea of ​​the current market conditions and therefore the demand for Uniswap.
Most of the major cryptocurrencies traded on DeFi platforms have seen a surge in demand in recent days. Although demand Slowing down now, as the market is anticipating the next move.
The result reflects the drop in the volume of transactions observed in the last 24 hours. This is most clearly reflected in the daily active addresses which decreased significantly over the same period.
Source: Feeling
The earlier drop in network activity is reflected in address activity on the network. Both shipping and receiving addresses have decreased since February 16, confirming less business activity.
Despite this, the number of receiving addresses remained slightly higher than that of sending addresses.
Source: Glassnode
Oscillations in the flow of addresses are quite common and do not necessarily suggest a pivot. However, they can be correlated with this type of market outcome, especially in areas of resistance.
What about the demand for UNI tokens?
university The price has been stuck in a zigzag pattern since mid-January and has shown an overall uptrend for the past seven days. This shows an attempt to cross the mid-range of the RSI.
Source: TradingView
Interestingly, the demand we have seen from UNI so far has carried over to DeFi. This is evidenced by the increase in the supply of UNI contained in smart contracts, which has increased significantly in the last four weeks.
Source: Glassnode
Regardless, UNI is still heavily influenced by crypto in general. market conditions.
This means that if the market remains bullish, demand for it is likely to remain strong. On the other hand, a return of bearish pressure could lead to a further decline.
