• Uniswap’s trading volume and revenue have declined significantly in the past few days.
• On-chain metrics suggest a negative outlook, with fewer unique users and lower fees being collected by Uniswap protocol.
• Traders are taking short positions against UNI as the MVRV ratio continues to decline.
Uniswap Trading Volume Declines
Uniswap’s trading volume has been steadily declining as its revenue has also declined. According to recent data provided by token terminal, the trading volume of UNI decreased significantly over the past few days.
Decreasing Unique Users
Data from Dune Analytics revealed that daily transactions on Uniswap DEX have dropped considerably, which could be due to decreasing number of unique users on the network. As per Messari, this number decreased by 0.12% in last 24 hours. Additionally, fees collected by the protocol dropped 4.1% over last week, impacting it’s revenue which decreased 0.47%.
UNI Velocity Increases
According to Santiment, UNI’s velocity increased substantially in last week with most of these transactions being UNIs sold at loss – indicated by spike in transaction volume at a loss and decrease in MVRV ratio meaning addresses were losing money on their holdings and selling off quickly regardless of losses incurred. This drove prices down and traders turned pessimistic towards UNI token as per Coinglass data showing increase in short positions taken against it recently.
Uniswap Dominance Continues
Despite these challenges, Uniswap still remains dominant force in DEX space occupying 75% market share at press time – yet to be determined whether these issues will affect its dominance or not long term.
Conclusion
In conclusion, Uniswap is facing several challenges such as decreasing trading volumes and revenues along with an increasing number of short positions taken against UNI tokens; however it still maintains its dominance within the decentralized exchange marketplace for now despite recent declines in performance metrics such as user numbers and fees collected by protocol.