automated liquidity protocol Uniswap [UNI] She made her way to where she was two weeks ago, although many of her peers have made good gains. Although he made it huge waves A week ago, it was amazing to see the price of UNI in the exact territory it was in during the capitulation of the cryptocurrency market.
at the time of publication, UNI is trading at $6.54. Crypto’s price performance was particularly disappointing as it failed to share both Bitcoin [BTC] And the Ethereum [ETH] height in the graphs. exactly the contrary, Curve Finance [CRV]For example, it recorded an increase of 11% in the past seven days.
approaching the drop
Not only did UNI underperform in terms of price, but its Total Closed Position (TVL) was also threatened. according to DeFiLlamaTVL from Uniswap has lost 13.63% of its value in the past 30 days. Despite the fact that TVL reached $6.29 billion as of August 10, the project chains seemed unprepared to face the hurdle of maintaining fourth place in the rankings.
At press time, Uniswap’s TVL is valued at $5.65 billion.
Now, while other top DeFi protocols are also down per TVL, Uniswap has recorded the biggest drop. Using Curve as a reference point, the latter only lost less than 10% of its TVL value.
Where then – hinder or reinforce?
The prevailing momentum may disturb investors. Therefore, it would be wise to evaluate the exact UNI site. Data platform on chain Santiment recently open That UNI’s Market Value to Realized Value (MVRV) was not in the best of states. With a value of -6.04, it was clear that the realized value was more than the market value. In this case, UNI did not bring in enough profits for the investors to sell.
In terms of volume, the initial increase to 152.1 million appears to have eased. However, it would be wrong to conclude that UNI’s short-term demise is inevitable.
A look at the altcoin price chart seems to confirm the same thing.
Based on the cryptocurrency Relative Strength Index (RSI), for example, UNI only acted in line after the previous overnight level triggered a reversal.
However, the RSI did not turn completely bearish. In fact, a look at the OBV showed that UNI was already declining as liquidity was pumped into its ecosystem. OBV, at the time of writing, is at 201.08 million – a point below its levels earlier in the week.