Even with stiff opposition from fresh decentralized exchanges (DEXs), Uniswap’s Unichain has achieved a remarkable feat this month—vaulting past $10 billion in trading volume.
This is a plain, not-at-all-invisible token of a protocol that’s provoking activity and seeming resilience. Yet the token that serves as the native currency for this protocol, $UNI, is trading at levels that look not much different from the abysmally low trading levels of the 2022 bear market. But what if I told you that the future price action for the $UNI token could be significantly different from what we’ve seen play out over the last 10 months?
A “Dead” Protocol? The Market Tells a Different Story
In the rapidly changing universe of decentralized finance (DeFi), receiving the designation “dead protocol” can often mean death is imminent. Yet Uniswap, one of the grandfathers of DEXs, shows no signs of dying. If anything, it looks healthier than ever. The numbers are pretty telling: for the month that just ended, the backbone of the Uniswap protocol—its core automated market maker on Ethereum—saw over $10 billion in trading volume.
This isn’t the kind of showing usually associated with a platform on the brink of collapse. Actually, it’s a figure that competes with or surpasses the numbers posted by many of the newer, supposedly “hot” DEXs. It implies that not only is Uniswap holding its own in a brutally competitive landscape, but it’s also seemingly doing better than many of its rivals.
Even so, this trading volume hasn’t yet led to a jump in the price of $UNI, which presently hovers at $6.50, awfully familiar to its pricing during the dark days of the 2022 bear market. The mismatch between protocol activity and token price has left many investors puzzled. But those with plenty of experience in this space understand that prices tend to lag behind network fundamentals.
Eyes on James, the Quiet Whale Behind $21.54M in Gains
Smart money has a way of speaking volumes without saying a word. One figure in particular—known in the community as James—has quietly emerged as a name to watch. Since September 2020, James has accumulated an astonishing $21.54 million in profits from $UNI trading. Most of it came through spot investments, and the rest through holding in somewhat volatile periods.
What is noteworthy is his recent activity. Since May 21, James has initiated what analysts are calling his “third UNI band,” buying in at an average cost of $5.99. With the current price sitting at $6.81, he has already amassed a floating profit of around $370,000. While that figure may seem modest compared to his historical performance, the significance lies in the context.
A new position arises right now as the market sits with over a billion dollars in leveraged positions. James’s comparatively safe, conservative, spot strategy bases this new position on something as rare as ever in the Obama-to-Trump-to-now period: actual price discovery for actual commodities. With high-stakes bets being placed throughout the market, will James take the relatively safe path of realizing profits on his spot-based position?
From $6.50 to ATH: Is a 6x Rally on the Horizon?
At its present trading price of $6.50, $UNI would have to increase almost six times to reach its all-time high (ATH) again. Although that might appear to be a tall order, it’s not impossible considering the token’s past performance and the resurfacing on-chain activity. Whale accumulation, enormous trading volume on Uniswap, and a mostly bearish market may create the conditions for a renewed push in the token price.
As decentralization finance (DeFi) keeps advancing and clearer regulations arrive, we are starting to see platforms like Uniswap—ones with dependable infrastructure and ample liquidity—as the way forward for what some are calling the “decentralized web.” If the past is any guide, we might not be seeing the Uniswap token, or $UNI, at current bear market levels for much longer.
In the upcoming weeks, both analysts and investors will be paying close attention. If James opts to sell at these elevated prices—or to keep holding it until the asset moves even higher—it may provide the impetus for other would-be sellers to finally pull the trigger.
In the DeFi universe, perception can shift in an instant. Yet, one thing is becoming evident: Uniswap is anything but obsolete, and $UNI might be setting itself up for a major comeback.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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The post Uniswap’s Unichain Surpasses $10B in Trading Volume as $UNI Eyes a Return to Glory appeared first on The Merkle News.
