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UNI Token Fell 6.4% but Is 2% Up Now, Legality of Uniswap’s Decentralization Is Questioned

Summary:
After rising to its all-time high, .40, on September 18, UNI token has lost approximately 38% of its value.Uniswap Protocol coin, UNI token, had fallen approximately 6.4% during Friday’s London trading session. The asset was trading around .13 (+2.24%) as of the time of writing. Notably, its market capitalization stood at around 7 nillion, while its daily volume stood at 2 million. Although its market capitalization has risen in respect to Monday’s figures, its daily trading volume had slashed by half by today.Thus a clear indication of the hype initially around the token has subsided. However, the token is still on track to continue improving the Uniswap project at large.The asset had risen approximately 44% in the past seven days through September 24, according to CoinGecko. In

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After rising to its all-time high, $8.40, on September 18, UNI token has lost approximately 38% of its value.

Uniswap Protocol coin, UNI token, had fallen approximately 6.4% during Friday’s London trading session. The asset was trading around $5.13 (+2.24%) as of the time of writing. Notably, its market capitalization stood at around $657 nillion, while its daily volume stood at $792 million. 

Although its market capitalization has risen in respect to Monday’s figures, its daily trading volume had slashed by half by today.

Thus a clear indication of the hype initially around the token has subsided. However, the token is still on track to continue improving the Uniswap project at large.

The asset had risen approximately 44% in the past seven days through September 24, according to CoinGecko. In addition, it had managed to rise almost 400% since it recorded its lowest price at $1.03 on September 17, 2020.

After rising to its all-time high, $8.40, on September 18, UNI token has dropped approximately 38.7% of its value.

Worth noting is that UNI token had a circulating supply of 130,841,901 as of the time of writing. Also, UNI token has been ranked position 31 by CoinGecko, whereby the list is done by use of market capitalization.

UNI Token and Uniswap Project

Uniswap Defi protocol is still among the leading DeFi projects according to DeFiPulse, whereby at the time of writing it was second with $1.87 billion locked in its system. Maker was leading the list with $1.89 billion while Aave closed the top three with $1.38 billion locked in its system.

Notably, the total assets locked in the entire DeFi ecosystem was approximately $10.36 billion as of the time of publication. Hereby making Uniswap a vital project in the DeFi world and also the digital assets market globally.

Through technical analysis, UNI token is caught up in what seems like a strong tug of war between the bulls and the bears.

Having astronomically risen in the past few days, after the Uniswap team airdropped a portion of the UNI token supply to appropriate investors, several fundamentals are beginning to appear, which may hold the assets future prospects.

It has been unearthed that the tokens allocated to the Uniswap team and investors are currently held in regular Ethereum addresses (i.e. externally owned addresses, or EOAs) with no transfer restrictions.

Of interest is the fact that the governance treasury tokens are locked up in smart contracts and will be released programmatically over time, but it’s unclear who controls the keys to these addresses.

This raises the question of the UNI token mode of decentralization, with the risk of market dumping.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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