UNI Pumps 14%—But Can Uniswap Dodge Its Liquidity Crisis?

Uniswap''s native token UNI rockets 14%—yet whispers of liquidity drains linger. DeFi''s darling faces its next stress test.

Liquidity woes haunt even the brightest rallies. Will UNI''s surge hold, or is this another ''buy the rumor, sell the news'' circus act?

370K UNI holders and treasury boost signal strong fundamentals

Market data shows that the recent price increase may be attributed to several key on-chain developments.

One significant contributor is the Total Holder Count of UNI, which has reached a new all-time high.

At the time of writing, approximately 370,000 addresses now hold UNI. While the total volume held by these addresses isn’t specified, it is likely significant, contributing to the recent 24-hour price increase.

Source: Artemis

During this period, UNI’s Treasury Value also grew, further strengthening bullish sentiment. The treasury is now valued at $5.6 million.

This growth indicates that Uniswap’s financial health is strong and that the team has the necessary resources to support development efforts when required.

While these market developments have drawn investors closer to UNI, sentiment data also suggests the market isn’t entirely bullish.

DEX volumes fall, and TVL inches up

Market analysis reveals a notable drop in spot trading activity on Decentralized Exchanges (DEXs), as volume continues to fall.

Currently, DEX Spot Volume has declined, with only $1 billion in trading volume observed for UNI.

Source: Artemis

This persistent decrease suggests that spot traders may still be selling the asset, potentially putting downward pressure on its price.

Meanwhile, data from DeFiLlama indicates a sharp fluctuation in Uniswap’s Total Value Locked (TVL), which tracks assets deposited in the protocol.

TVL hovered around $4.847 billion at the start of June and now stands at $4.883 billion. This slight increase suggests minimal liquidity inflow over the past 10 days.

Source: DeFiLlama

This trend indicates that investor conviction isn’t particularly strong. Rather than locking assets into liquidity pools for the long term, many may be keeping funds on Centralized Exchanges (CEXs) for quick sell-offs.

Spots sell, but derivatives traders stay bullish

Spot Market data indicates that sellers have been more dominant recently.

In the past 48 hours, UNI worth $7.93 million has been sold, with $6.48 million in sales recorded within the last 24 hours alone.

Source: CoinGlass

Although this has added downward pressure on the asset, derivatives market data suggests that traders on Centralized Exchanges remain bullish.

In just the past 24 hours, UNI’s Funding Rate has risen notably to 0.0044%, indicating that long-position holders are paying a premium in anticipation of further rallies.

Source: CoinGlass

Overall, market sentiment reveals that long traders are countering the selling pressure from the Spot Market, sustaining a generally bullish outlook.