The Uniswap price fell lowest since January 2021 with continued fears about cryptocurrencies. The UNIO token is trading at $8, about 83% below its highest in 2021. Its market capitalization also fell to about $3billion while its cryptocurrency rank trips to 33.
Trading Volume Fall
Uniswap was among the first platforms in the decentralized finance (DeFi) industries, and it’s currently one of the most popular decentralized exchanges (DEXes) with millions of users worldwide.
Uniswap contrasts with other centralized exchanges in various ways, like it doesn’t require user registration, but one can access its services by linking their cryptocurrency wallet like Metamask.
Moreover, Uniswap’s revenue model is different from Coinbase and Binance. Fees are set by the market and revenue allocated among the UNI token purchaser.
However, the centralized and decentralized exchange industry has struggled lately as trading volume diminishes.
For instance, firms like Coinbase, Block, and Robinhood markets have reported disappointing financial results lately. They owe this on the relatively low trading volumes thus have lost billions of dollars in value.
A similar pattern is evident with Uniswap, the eighth largest DeFi platform globally with over $7 billion in total value locked (TVL). Its TVL tumbled from its highest of more than $10 billion.
This performance is mainly since all cryptocurrencies dropped sharply in the past couple of months. Moreover, competition in the industry has increased, and DEXes number has risen.
Uniswap Price Forecast
The daily chart indicates that the UNI price has been deeply sell-off for the past few months. The sell-off gained steam when it moved beneath the key support level at $13.70, where it struggled to move below in July 2021. it also did a break and retest pattern, which is usually a bearish sign.
Therefore, there is a possibility that the Uniswap price will continue to drop as bears target the next key support level at $5.