Uniswap is once again hogging the headlines following the token’s comeback in the wake of optimistic signs that the bear market may be winding down.
In the past week, UNI, its native token, has seen enormous growth, as the decentralized exchange’s trading volumes have rivaled those of Ethereum, the blockchain on which it is constructed.
Multiple news agencies claimed that Uniswap exceeded Ethereum in transaction fees. The second-largest blockchain, Ethereum 2, was surpassed by the revenue of the flagship DEX.
UNI saw a 45 percent increase in its value to $5.46 in the week that ended. Its highest point in over three weeks.
Uniswap Making Northbound Trajectory
Since the start of the week, the largest DeFi exchange has trended upwards. Looking at the price trend over the last few days, it appears that UNI’s main objective is to close June on a positive note.
In addition, the stockpiling of UNI tokens by whales is a significant component in the token’s price bump.
The rising fees for Uniswap might be a sign of recovery in the DeFi market after a hard first half.
Source: TradingView.com| Source: TradingView.com
Data from DeFi Llama shows that the DeFi’s total value locked (TVL), decreased more than 60% in 2012.
Katie Talati, an analyst at Arca, attributes the DeFi exchange’s most recent accomplishment to quickly increasing volatility, which led to a substantial increase in trading volumes.
Simultaneously, Ethereum has witnessed a significant fall in user activity, whereas layer-2 solutions are gaining popularity because of their low transaction fees.
UNI Facing Bullish Momentum
Uniswap is among those that have benefited from the recent market restoration, having lately attempted a price turnaround. UNI has risen 2% over the past 24 hours. This is a substantial increase since the token was $3.39 in the previous slump.
The bullish trend continues, so bears cannot sell in the $5.8-$6.2 resistance zone. This has been there for over 30 days. It has repeatedly been retested.
Bulls still have a strong presence in bull markets, but they don’t want to lose their UNI tokens.
Uniswap lost 50 percent (TVL) of its total locked value this year. This week also saw modest inflows with the TVL rising by 11 percent, to $5.1billion.
Enhanced participation with Ethereum Layer 2s may contribute to the exchange’s rising popularity. Uniswap already has a significant user base and is integrated in other Ethereum-based applications.
Featured image by Cryptokio. Chart by TradingView.com