Flipping Them The debate in the crypto space has generally revolved around Bitcoin and Ethereum. Bitcoin maximalists, on the one hand, believe that no alt can dethrone it. On the other hand, proponents of Ethereum openly argue that the switch is just a matter of when and not if.
This debate Aside, the crypto space witnessed another sea change recently. Uniswap, one of the largest DeFi protocols in the industry, was toppled by Solana a few days ago. Notably, UNI is no longer part of the top 10 prerogative crypto assets.
At the time of writing, CMC data highlighted that Solana’s value had appreciated by more than 76% over the past week, while Uniswap’s price plummeted by more than 2%. Ergo, the most important question at this stage remains: Can Uniswap recover from this radical change?
Well, at the time of writing, the overall market sentiment towards Uniswap was fairly neutral, indicating the token’s recovery. The MVRV ratio, to begin with, dropped to 103% when the change occurred. However, it has been able to gradually climb back up over the past few days. It shared a value of 126.65%, at the time of writing this article.
This increase essentially means that Uniswap HODL users are making more money in the market than during the August 17-18 period.
The number of large acts (> $ 100,000 each) also witnessed a parallel increase from 159 to 231 over the past week. In terms of volume, the number increased from 1.22 million tokens to 8.3 million tokens.
Interestingly, this data, along with the weekly 2% price drop, suggested that there has been more trading on the sell side in recent days.
However, the aforementioned trend seems to be reversing, which is accentuated by the fall in the volume of foreign currency inflows. Yesterday the added input volume was worth 591.3k UNI tokens. At the time of writing, however, it stood at just 334.1k.
Usually when entries are reduced on exchanges, it is inferred that the tokens are moving to private wallets or cold storage. The same is indicative of an increase in demand or buying pressure. Basically this has a tendency to push UNI’s price up in the next few days.
UNI’s funding rate has also increased in the last 24 hours. The same was visible on exchanges such as Binance and Phemex which posted increases of 0.02% and 0.01% to 0.05% and 0.03%, respectively.
This was a sign that traders are mostly optimistic about the foreseeable outlook for crypto.
Can flippening be reversed?
Well, at this stage, anything can happen. As can be seen from the attached graph, the market capitalization gap has been gradually narrowing. Although the functionality of both projects is different, their respective utilities and use cases are quite robust.
So it would be interesting to wait and see how things develop in the next few days.
This is a machine translation of our English version.
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