- Except for the rally accelerated by Elon Musk, the last week was not very good for the Bitcoin market. In fact, it did not go well in many people’s eyes. Bitcoin hovered at a certain interval over a ten-day period. Ethereum was also floating just below its ATH value in 2018. According to AMBCrypto author Jibin George, however, contrary to what maximalists or ETH fans think, there is more to the crypto market than BTC and ETH. The recent performance of the DeFi market is exemplified by Uniswap and its price performing “better” especially on most metrics.
Uniswap, one of the pioneers of Automatic Market Maker (AMM) models, has a total locked-in value (TVL) of over $ 3.20 billion. It also has a market share of over 40% among DEX (decentralized exchanges).
However, TVL alone is often not enough to provide a full view. In fact, as observed by IntoTheBlock, TVL can often be used to assess the liquidity of the platform while giving an idea of only the supply side of the equation. Liquidity providers received extensive UNI awards in Uniswap’s liquidity mining award program for two months. Then, as soon as the incentive program ended, its liquidity dropped 58%.
Uniswap recovered with the same rise in January, although a 58% drop in liquidity was seen as dramatic for a DEX. In fact, the weekly trading volume of $ 1.3 billion made ATH on the last set of “DeFi Summer” last year.
But that’s not all. According to the author, other metrics also come into play. According to IntoTheBlock’s latest newsletter, daily active addresses rose to 7.89 thousand a few days ago. Moreover, the number of large (> $ 100,000) UNI transactions increased from 139 to 737 on January 27.
According to the author, the exponential growth in the same metric could be evidence that individual investors alone are not responsible for the growing popularity of the DeFi domain and therefore Uniswap.
Record in Uniswap derivatives
Finally, according to Jibin George, there is also the issue of perpetual swap. Like many other indicators, derivative volumes can be used to gauge how strong the ongoing price trend is in any market. Perpetual swap volumes have increased by over 463% since the UNI price rally began in January, reaching a new ATH of $ 2.68 billion a few days ago, according to the crypto analytics platform.
According to the author, this points to the price verification made by UNI’s traders. A result that can be supported by the fact that the DeFi token price has increased astronomically by 1,360% since the end of the “DeFi Winter” two months ago.
All of the above point out that Uniswap’s recent performance is supported by strong fundamentals and indicators. According to the author, with the positive feeling around version 3.0, the price is inevitable.
Uniswap broke a new record at around 20:50 BST and reached the $ 18.44 level.