Uniswap [UNI] Witnesses Unprecedented Growth in Accumulation – Rally on the Horizon?

Uniswap [UNI] witnessed a remarkable daily accumulation of $25.16M on Tuesday, February 4th. According to blockchain analytics company IntoTheBlock, this surge in buying activity marked one of the highest levels seen since 2021.

Withdrawals of Over $54.6M UNI in the Current Week

On Tuesday alone, more than 3.6 million UNI tokens were withdrawn. Over the course of the week, an impressive $54.6M in UNI tokens were withdrawn from various cryptocurrency exchanges.

This indicates that investors, particularly those with long-term perspectives, capitalized on the recent market adjustment earlier in the week to acquire UNI at discounted prices below $7.

But what about traders? Were they also bullish? CryptoCrypto examined Hyblock’s Whale vs Retail Delta to assess the demand for UNI among whale traders in the Futures market.

Following the recent decline, UNI’s price has found stability above $8. Nonetheless, the stability has seen fluctuating activity among whale positions in the Futures market. According to Hyblock, UNI’s Whale vs Retail Delta has been alternating between positive and negative territories since February. A solid positive reading would indicate dominance by whales and could potentially lead to a sustained recovery for the DeFi token.

Moreover, the Ethereum-based decentralized exchange (DEX) launched a new iteration (Uniswap V4) offering enhanced capital efficiency and expanded token swapping capabilities across 12 different chains. This upgrade was made possible by the DEX’s innovative ‘hook’ architecture.

Currently, Uniswap V3 holds over $3B in locked funds, while the newly introduced V4 has accumulated more than $50M within just one week of its launch.

Nevertheless, analysts at Coinbase suggest that it may take some time for the new version to attract significant liquidity and activity. They emphasized the necessity of testing the security features of the latest release.

“While a significant advancement (Uniswap V4), we anticipate that it will require several months for Uniswap V4 to surpass the current V3 version based on historical releases.”

In terms of price performance, UNI has declined by 54% from its peak in December of $19 at the time of writing. However, the retracement has retested the breakout level from the multi-year range ($7.5) that initiated the price surges in March and November of 2024.

If this level acts as a support once more, UNI could potentially rally towards the $15-$20 range in the medium term.