The Complete Unlocking of Uniswap’s Tokens and Beyond
Uniswap has achieved a significant milestone by fully unlocking 100% of its token supply. However, the journey does not stop there. According to analysis by @EmberCN, only 25.83% of the total 1 billion UNI tokens (approximately 258.3 million) are currently in circulation in the market.
This limited circulation is a result of a significant portion of the supply being held by various entities like the community treasury, team members, investors, and advisors, who are yet to release a considerable amount of their holdings.
Allocation Breakdown and Current Circulation Status
Out of the total UNI supply, 17% was initially distributed through liquidity provider (LP) staking rewards and airdrops to early users, which are now part of the circulating supply. The remaining 83% was allocated to the community treasury and key stakeholders such as the team, investors, and advisors.
While the community treasury has unlocked its entire 430 million UNI allocation, only around 30 million UNI tokens have entered the market. Similarly, the 400 million UNI reserved for the team, investors, and advisors have been fully unlocked, but merely about 58.16 million UNI has been sold so far.
This cautious approach taken by major stakeholders, including investors like a16z, has played a role in maintaining a stable market price by preventing a sudden influx of tokens into circulation.
Strong Long-Term Confidence from Holders
Despite the full token unlock, there hasn’t been a substantial sell-off by key stakeholders. Holding over 700 million UNI tokens reflects a strong belief in the project’s future among major investors, potentially aiding in stabilizing the market.
This strategic holding strategy might signify a sense of long-term confidence in Uniswap, with stakeholders like a16z possibly waiting for opportune moments before releasing more tokens into circulation.
The limited circulating supply could influence future market dynamics, particularly if significant stakeholders opt to sell more UNI tokens.
Accumulation Surge Indicated by UNI Outflows
Recent data from IntoTheBlock shows mixed movements in the UNI market with both inflows and outflows. On September 16th, there were net outflows of 62,350 UNI, indicating a withdrawal of tokens from exchanges.
This trend suggests that holders may be gearing up to stake or hold their UNI tokens for the long term rather than engaging in short-term selling.
While net inflows have risen over the last seven days, signaling accumulation by large holders, the past 30 and 90 days have seen a trend of net outflows, possibly hinting at reduced activity among large holders over time.
Despite these fluctuations, UNI has maintained a relatively stable price, witnessing a 2.55% increase in the last 24 hours and a 1.09% rise over the week, demonstrating the market’s resilience to these changes.
At the time of writing, UNI is valued at $6.63, with a 24-hour trading volume of $138 million and a circulating supply of 750 million UNI, giving Uniswap a market capitalization of nearly $5 billion.
While recent data suggests potential accumulation, future market volatility could surface if major stakeholders opt to sell more of their holdings.