Uniswap's price maintains a significant support level concurrently with a surge in trading volume and revenue.
Uniswap, the leading decentralized exchange, has witnessed a surge in transaction volume and fees, reaching levels not seen since February, as the platform processed over $73 billion in transactions this month. This significant increase, from $53.2 billion in April, marks the biggest monthly growth since the protocol handled $78 billion in February.
The bulk of Uniswap's trading activity occurred on the Ethereum network, followed by Arbitrum, Unichain, and further chains. Notably, Unichain, a relatively new launch by Uniswap, has already processed over $14 billion in volume, outperforming Cardano's $4.9 billion.
In terms of fee revenue, Uniswap has generated over $380 million this year, eclipsing Ethereum's $275 million. This growth is attributed to increased trading activity and higher volumes on Uniswap's platform. Despite these strong fundamentals, the price of Uniswap's token (UNI) remains 65% below its December high.
Competition within the decentralized exchange space is intensifying, with prominent players like PancakeSwap capturing a substantial market share. PancakeSwap alone processed nearly $100 billion in volume this month. Meanwhile, Raydium is another competitor, though specific volume figures for this month are not detailed.
A potential concern for UNI's price is the decrease in the amount of the token held by whales. According to Santiment, the supply held by whales has dropped to 748 million tokens, down from a high of 850 million in December. This reduction in holding could be interpreted as a bearish signal.
Technically, Uniswap is forming a bullish megaphone pattern on the weekly chart, potentially indicating a rally towards last November's high of $19.24, which would represent a near 200% increase from current levels. However, a drop below the lower boundary of the megaphone pattern would invalidate this bullish setup and suggest further downside.
- The Ethereum network has been the primary venue for Uniswap's trading activity, but Unichain, a new launch by Uniswap, has surpassed Cardano with over $14 billion in volume.
- Uniswap's token (UNI) has seen a significant price decrease, currently standing 65% below its December high, despite the platform generating over $380 million in fee revenue this year.
- Competition is mounting in the decentralized exchange space, with PancakeSwap processing nearly $100 billion in volume this month, a potential threat to Uniswap's dominance.
- The decrease in the supply of UNI tokens held by whales could be a bearish signal, as the amount held by these large holders has dropped to 748 million tokens, down from a high of 850 million in December.
