Uniswap maintained impressive trading volumes over the past few months amidst a disrupting bear market. Though a healthy outcome, events that emerged during the bearish market highlight its potential to be a giant in the decentralized finance sector.
The latest Grayscale report concerning the current bear market reveals Uniswap’s capability. It stated that Uniswap boasts high crypto pair depth than leading centralized cryptocurrency exchanges. That includes Binance, which remains the top platform by volume. That’s because it focuses on high liquidity, helping it outshine the competition.
Centralize Finance Woes
The fall of centralized finance networks in the blockchain space contributed to the selling momentum within the past couple of months. Most investors now perceive DeFi liquidity and staking protocols as riskier. That has backed the liquidity flow into decentralized finance networks, benefiting Uniswap.
The liquidity flow favoring decentralized finance protocols will likely boost the native (UNI) performance within the upcoming market cycle. Nevertheless, the Grayscale data added that the bearish conditions could stretch for up to five months. That translates to UNI’s price tendencies remaining restricted.
UNI remains approximately 92% up from its present yearly lows, trading at $6.68 during this publication. Nevertheless, Grayscale’s bearish projection means potential declines for the token in the near term. Uniswap’s support currently holds the 38.2% FIB retracement zone. The near-term picture stays uncertain into the weekend.
Nevertheless, bulls have some hopes as the network growth picks up after plunging to 4-week lows on August 23. Uniswap’s long-term picture still favors bullish actions, especially considering the liquidity flow plus its lead as a leading DeFi.
The alternative token revealed a healthy long-term performance as the steady mean coin age indicates. Unfortunately, the narrative for the realized cap metric differs, which declined to a 12-month low in July. That’s because most investors purchased during hype peaks before the bear market dominated.
The crypto market reflected bearishness during this publication, following sudden downsides over the past 24 hours. For instance, Bitcoin declined by 5.83% within the last day to trade at $20,186.23. Market outlook remains deteriorated in the near term.
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