Decentralized Finance [DeFi] the space expands whenever Bitcoin and the rest of the mainstream cryptocurrency market get stuck in a rut. In fact, many DeFi apps have received a perfect milestone thanks to these fixes in the market and Uniswap [UNI] has historically been one of them.
Like most other DeFi projects, Uniswap reached peak volume for much of the first half of 2021, the data shows. In fact, as the attached chart shows, while June was kind of an anomaly, DEX’s volume steadily increased throughout the year.
That said, despite the high volumes seen by the market leader DEX, network activity has remained somewhat contained lately.
With the declining value of UNI in the market, users are moving away from transactions and use of digital asset. This is important, especially since until some time ago, he had embarked on the path of recovery. This was, alas, only a short-lived trend. UNI’s price rebounded from the $ 14 level with no signs of strength for an upward movement.
The drop in prices associated with the downturn in the Bitcoin market has moved traders away from the Uniswap market. This can be confirmed by the decrease in the number of daily active addresses. Since the price hit $ 48 in May, general interest has declined.
In addition, data from Santiment suggested that a large number of users are probably gone and that no new speculator has entered the market.
Due to low user interest, even the price remained under strong downward pressure.
But is this market weakness a shock?
Actually no. The network growth metric started showing signs of weakness in mid-May. Also, it hasn’t recorded a new high other than that seen in the first quarter of 2021. That growth has now come to a halt as UNI’s price continues to drop in the charts.
This lack of Network growth is a sign of the absence of speculators in the market over the past 30 days. If the metric drops further, the price of the crypto asset could follow its lead.
It should be noted, however, that the Uniswap team has for the first time hired an COO to expand the growth of the DeFi project. Mary-Catherine Lader, who has worked at asset management companies like BlackRock, will be responsible for improving the reach of the network. New leadership could make a big difference in Uniswap’s operations, but its results will take time to think about. Especially since, as Santiment said, “they have exhausted the story V3 and L2”.
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