- UNI price declines by 35 percent
- Liquidity pools expanding
- The total value locked in SushiSwap slides sharply
The DeFi market can be a little bit crazy as UNI price falls by over 30 percent. DeFi tokens can rise from zero to record peak prices pretty quickly, and vice versa, with the current market situation. Although the decline’s magnitude is not exactly as described, UNI price has plunged heavily since hitting record price during the weekend. UNI is the governance token of decentralized exchange platform Uniswap
After the launch of the eagerly anticipated UNI token and liquidity pools on September 16, the consequent craze boosted the tokens’ price through the roof, causing Ethereum gas price to skyrocket. However, as the hype diminished, both the price of UNI tokens and ethereum transaction fees are declining.
UNI price falls by over 30 percent
The price of UNI tokens reached an all-time high of $8.5 on September 18. Like the other DeFi tokens in the market, the price skyrocketed from zero to peak within a couple of hours. A few hours after UNI was inaugurated into the market, several major exchanges such as Binance, Huobi, Coinbase, and Okex added support for the token. A number of them also launched leveraged future products.
Additionally, Uniswap distributed 150 million tokens to over 400 addresses that had provided liquidity to the protocol before the start of September and acquired limited edition socks using the platform. DeFi enthusiasts were over the moon after the airdrop, and the majority have sold the Uni tokens hence the sharp price decline.
At press time, Uni tokens were trading at $5.09 after dropping to a low of $4.7 on September 20. However, the UNI/USD pair seems to have established itself within a sideway channel over the last few days.
According to options and margin trader, Chase-NL, after the UNI price fell by a massive 30 percent, traders should go short on the token. Chase_NL expects a potential bottom near $3.8.
Uniswap liquidity pools flourishing
Liquidity vendors have been pumping their digital assets into Uniswap’s four pools throughout the weekend, with the funds now standing at $1.5 million. Currently, the ETH/WBTC pool is the most active and prevalent pool holding 30 percent ($463,000) of the total collateral amount. The ETH/USDT pool currently has more than $400,000, while the other two collections, ETH/USDC and ETH/DAI, hold $368,000 and $315,000, respectively.
UNI farming is set to progress until November 17. However, as the liquidity pools expand, the tokens diminish as the dispensation becomes thinner, as per the provider. The liquidity enterprise has driven Uniswap to top the decentralized finance charts. The total value of assets locked draws near an all-time high of $2 billion as per Defipulse data. As UNI price falls by over 30 percent, the amount of assets locked in SushiSwap has plunged massively from a record high of $1.42 billion to a little over $500 million