Why has UNI been weak recently? When will the bull market erupt? 🚀
As the absolute leader in the Ethereum ecosystem DEX track, UNI has long occupied the dominant position of decentralized exchanges and is the cornerstone protocol driving the development of the entire DeFi space. However, its recent performance has been lackluster, mainly due to three key reasons:
1️⃣ Side effects of Layer 2 ecosystem incentives
Recently, L2 networks like Arbitrum/Optimism have launched ecosystem incentive activities, leading a large number of users to mine for UNI rewards and then immediately sell, resulting in continuous selling pressure.
2️⃣ Lack of token empowerment pain points
UNI has not yet implemented value capture mechanisms such as protocol revenue sharing or buyback and burn, which diminishes the motivation for holders to hold long-term. This is a core factor suppressing the token price.
3️⃣ Impact of market hot topic rotation
Currently, funds are concentrated in hot sectors like MEME coins and the Solana ecosystem, leading to a temporary decrease in overall funding attention to the DEX track.
🔥 Prediction of turning signals
If Q3 announces an upgrade to the token economic model (such as transaction fee dividends)
Ethereum ETF drives the overall recovery of the DeFi sector
Trading volume breaks previous highs triggering FOMO sentiment
