Uniswapโs Rally Continues, but Some Wallets are Selling Off
Uniswap (UNI) has experienced a significant rally recently, with the price of its token increasing by over 76% in the past week. However, there are indications that some wallets associated with the Uniswap team have been selling off their UNI holdings. This could potentially signal a period of profit taking and a correction in the near future.
Uniswap Team Wallet Sells 90,000 UNI Tokens
Data from blockchain analytics firm Lookonchain reveals that a Uniswap team wallet recently sold off 90,000 UNI tokens for approximately 1.03 million USDC at a price of $11.48 per unit. This sale occurred after the price of UNI had already surged by more than 76%. Prior to this sale, the wallet had received a total of 5.44 million UNI tokens, which would have been valued at around $60.8 million based on the current price of UNI at $11.18. However, there are now only about 926,000 UNI left in the wallet, worth approximately $10.5 million.
The Strong Rally of UNI
Since December of last year, UNI has experienced a strong rally that has continued into the new year. In December alone, the token saw a 50% increase in price, pushing it towards the $10 mark. At the time, it was believed that UNI had no major resistance in its path and could potentially reach $10.
The focus then shifted to reaching the next significant target of $11.283. The Uniswap rally has remained consistent in recent weeks, especially with the announcement of Ethereumโs upcoming Dencun upgrade. Additionally, the trading volume for UNI has seen a substantial rise of over 60%, surpassing the $2 billion mark.
UNI Rallyโs Impact on DeFi Protocols
The rally of UNI has had a ripple effect on various DeFi protocols, contributing to a boom in the sector. On-chain data provider Santiment noted a shift in focus from the AI craze to the growing DeFi sector. The rally of UNI has also led to an increase in value for assets like COMP, SUSHI, and AAVE.
Trading volumes for these DeFi protocols have also experienced significant growth. For example, COMPโs price recently surged with its trading volumes increasing by 411% to over $175 million. Similarly, SushiSwap (SUSHI) saw a 27% price increase and a staggering 153% rise in trading volumes.
Possible Profit Taking and Correction
While it is not certain that the recent transfer of UNI tokens by the Uniswap team indicates a selloff, it is clear that the rally of the token has likely prompted some profit taking. A correction in the near term cannot be ruled out as a result.
Hot Take: Uniswapโs Rally Faces Potential Correction
It appears that the exciting Uniswap (UNI) rally may be elapsing as some wallets have been seen selling out their holdings. The recent sale of 90,000 UNI tokens by a Uniswap team wallet suggests that profit taking may be underway. While UNI has experienced significant growth and contributed to a boom in the DeFi sector, it is important to consider the possibility of a correction in the near future. Keep an eye on market trends and be prepared for potential fluctuations in UNIโs price.
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