DEX protocol Uniswap attracted attention with its 75 percent rally. According to Lookonchain, after this rally, the altcoin team started selling. So a correction is possible soon due to waning interest.
While Uniswap rose, the altcoin whale started taking profits!
According to data from blockchain analysis firm Lookonchain, a Uniswap team wallet sold a total of 90,000 UNI tokens for approximately 1.03 million USDC at $11.48 per unit. It is noteworthy that this transaction took place after the UNI token price increased by more than 76% last week. Before this time, the wallet had received 5.44 million UNI. This would be worth approximately $60.8 million based on UNI’s current price of $11.18. However, there is only about 926,000 UNI left in the wallet. That’s only worth about $10.5 million. In this context, Lookonchain shared the following:
A Uniswap Team/Investor/Advisor wallet sold 90,000 UNI for 1.03 million USDC at $11.48 after the UNI price increased. The wallet received 5.44 million UNI (currently $62.46 million) and currently holds 926 thousand UNI ($10.63 million).
UNI has survived strongly with a price increase that continues into the new year. In December alone, the token gained up to 50%. This pushed its price towards $10. At the time, it was said that there was no obvious resistance in UNI’s immediate path, so the possibility of reaching $10 was seen as attainable. Therefore, the focus was on getting UNI to its next important target of $11,283. The Uniswap rally has remained consistent over the past few weeks, especially with the announcement of the upcoming Ethereum’s Dencun upgrade. Similarly, transaction volume for UNI exceeded the $2 billion level. During this period, altcoin trading volume increased significantly by more than 60%.
DeFi protocols feeling the ripple effect of UNI rally
On the one hand, the Uniswap rally contributed to the Decentralized Finance (DeFi) boom across various protocols. On-chain data provider Santiment, in particular, highlighted a shift in focus from the Artificial Intelligence (AI) craze towards the emerging DeFi sector. UNI’s rally triggered a bullish ripple effect in assets such as COMP, SUSHI, and AAVE.
Transaction volumes on these DeFi protocols also experienced an increase in values. For example, a few days ago, as the price of COMP rose, so did the trading volume. During this period, altcoin transaction volume increased by 411%, reaching over 175 million dollars. SushiSwap (SUSHI) also witnessed the same situation. While the altcoin price increased by 27%, trading volume increased by a staggering 153%. It is not clear that the recent transfer of UNI by the Uniswap team constitutes a sale. However, it is clear that the token’s rally has significantly contributed to the possibility of taking profits. According to analysts, this brings up a correction in the near term.
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