Uniswap witnessed a 42% price increase over the past week. With a market capitalization of over $ 17.2 billion, this DeFi token was trading at $ 29.83 at the time of writing. In fact, out of the top 100 cryptocurrencies on the market, UNI was the sixth best performing asset this week.
Furthermore, UniSwap now accounts for almost 1% of the total market capitalization of digital currencies and has increased in value by more than 530% since the beginning of this year.
Is the growth organic?
The number of transactions and the total of active addresses have seen a sharp increase since the beginning of August. As you can see from the attached graph, the former has clearly doubled from 2.4k transactions to 4.8k transactions in just one month. When it comes to total addresses, even they managed to witness an increase from 246.6k to 255.23k in the same time window.
The state of the derivatives market also looked quite healthy. The funding rate on all the major exchanges, to begin with, remained positive at the time of this writing.
IntoTheBlock’s data further noted that open interest was also at its highest level since September last year. A high OI, as such, reflects the interest of investors. Generally, whenever price and OI both rise together, they give off a strong bullish sign. Accumulated open interest, as of press time, reflected a value of $ 498.74 million.
The forward curve of FTX Derivatives also showed an interesting trend. Now, as you can see from the attached chart, the market has been in Contango for more than a couple of weeks. As such, Contango is a situation where the futures price of an asset is higher than its spot price. The same thing usually happens when the price of the asset is expected to increase over time.
However, the curve slid slightly downward in the August 7-9 phase, but managed to stabilize shortly thereafter. In the future, if the market falls back, a price correction can be anticipated and investors should therefore remain slightly warned.
However, looking at the current state of all the metrics, it can be said that UniSwap’s growth has been, in general, organic. In hindsight, the odds that its rally will continue in the same direction are still quite likely.
This is a machine translation of our English version.
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