Analyzing the future of Uniswap’s NFT after the launch of the DeFi pool

  • Uniswap has launched its NFT business to a high level with its new aggregator.
  • The bullish outlook for UNI has been eased as selling pressure has increased.

Uniswap [UNI] I finally jumped on the NFT bandwagon. DEX has announced the launch of a new NFT pool in its latest attempt to secure a portion of the NFT market.

Is your UNI flashing green? Check out the profit calculator for Uniswap

A tweet from Uniswap on January 10 revealed that the aggregator will aggregate NFT listings from different marketplaces so that they can be viewed from a single interface. These platforms included LarvaLabs, LooksRare, and OpenSea.

The Uniswap NFT aggregator aims to make it easier for NFT traders to compare prices. But more importantly, it provides a level of efficiency to counteract the fragmented nature of the market. This means that users do not have to jump from one platform to another to find the best prices or offers.

Increased NFT sizes for Uniswap

While it was too early to say anything at the time of publication, Uniswap’s NFT trading volumes may see an increase following this announcement. However, the increase will depend on whether the effectiveness of this new offer can attract more users.

A look at its previous results revealed that trading volumes for Uniswap’s NFTs have fallen significantly from their highest levels in six months. This reflects the general decline in the NFT market over the past twelve months.

Source: feeling

However, despite the decline, the market still maintained a notable amount of trading volume. Thus, the new NFT aggregator has the potential to increase NFT trading volumes in the coming months.

Can UNI keep rising?

Uniswap native token UNI has seen some selling pressure after a strong rally since late December 2022. It was trading at $5.69 at press time after a slight pullback over the past three days.

Uniswap UNI price action

Source: TradingView

UNI may still have room for upside, especially since it was not overbought as of press time. However, its MFI was already overbought, which increases the chances of a possible downside. This has been supported by current observations regarding stock exchange volumes.

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The latest stock market volume data released by UNI confirmed a drop in trading activity at press time after a rally earlier in the week. The ratio of inflows to outflows indicates that the bulls were more dominant.

Uniswap UNI exchange flows

Source: Glassnode

UNI’s exchange flow outperformed exchange flow at the time of writing, confirming demand below selling pressure. Therefore, there is likely to be more selling pressure if this trend continues, but the bulls could come back if market sentiment allows.

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