Over the past 24 hours, there has been an 11.95% decline in UNI’s value within the market, with a shift towards a more negative sentiment. This downturn appears to have been primarily instigated by significant players, known as whales, within the market.
Further analysis from CryptoCrypto indicates that apart from the whales, other market participants have also reduced their interactions with UNI. This reduction in engagement could be a contributing factor to the drop in price.
Whales Commence UNI Sell-Off
Recent data from IntoTheBlock suggests a notable imbalance between bullish and bearish sentiments, with 12 bullish addresses and 23 bearish addresses observed in the last 24 hours. These addresses, categorized based on holding up to 1% of UNI’s supply, were actively trading the asset during this period.
A high disparity in favor of the bears often leads to market trends being influenced by larger holders. With 11 more bearish addresses, the trading volume was predominantly driven by this group, resulting in the 11.95% price decrease.
A deeper examination revealed that this segment of the market traded 11.98 million UNI, equivalent to $136.4 million, consisting mainly of substantial sell-offs.
The bearish sentiment extended beyond the whale investors, as liquidity providers have also started liquidating their positions, signaling a decrease in UNI utilization.
Wider Market Adapts to Bearish Trend
According to CryptoCrypto’s analysis, the broader market sentiment towards UNI has turned bearish, evidenced by a simultaneous decrease in two key metrics – Total Value Locked (TVL) and generated fees.
The TVL, representing the total asset value locked in liquidity pools, has dwindled for UNI, dropping from $5.937 billion to $5.584 billion. This decline indicates a rising trend of participants withdrawing and selling their UNI holdings.
Additionally, transaction fees have decreased during this period, falling from $9.24 million to $4.49 million, signaling reduced trading activity and an overarching bearish sentiment.
Consistent Adoption of UNI
In spite of the prevailing bearish sentiment, the number of unique traders, representing distinct addresses actively involved in UNI transactions, has maintained a steady pace between 88,700 and 94,700. This consistent level of activity demonstrates ongoing engagement within the UNI ecosystem.
Should the number of active addresses surpass this range, an increase in trader participation could potentially have a positive impact on UNI’s value, propelling an upward price movement.
Currently, this active cohort has played a crucial role in stabilizing UNI’s price and preventing a more drastic decline.