Uniswap Slingshots 45% – Can UNI Blaze Past Its 7-Day Rally?

Uniswap is again in the headlines after the coin’s comeback following optimistic signs that a bear market may be on the way to a pullback.

In the past week, UNI, its native token, has seen exponential growth, as trading volumes on the decentralized exchange compete with Ethereum, the blockchain on which it is built.

Several news outlets have reported that Uniswap has overtaken the Ethereum network in terms of transaction fees. The leading DEX has raised over $4 million, surpassing the second largest blockchain.

UNI has increased nearly 45 percent in the past week, to $5.46, its highest level in more than three weeks.

Uniswap Making a Northward Path

The largest DeFi exchange has been trending since the beginning of the week. Looking at the price trend over the past few days, it appears that UNI’s main objective is to close June on a positive note.

In addition, the hoarding of UNI tokens by whales is an important component of the token price hike.

After a grueling first half of the year, higher fees on Uniswap may be an indication that the DeFi market is starting to recover.

UNI total market cap at $4.14 billion on the weekend chart | Source: TradingView.com

This year, the total locked-in value (TVL) in DeFi has shrunk by more than 60 percent, according to data from DeFi Llama.

Arca analyst Katie Talati attributes the recent achievements of the DeFi exchange to rapidly increasing volatility, which has led to a significant increase in trading volumes.

At the same time, Ethereum has seen a significant drop in user activity, while Layer 2 solutions are gaining popularity due to lower transaction fees.

UNI faces bullish momentum

Uniswap is among those who have benefited from the recent market recovery, having recently attempted to shift prices. The UNI index is up 2% in the past 24 hours, a significant increase for the coin since it plunged to $3.39 during the last recession.

In the face of the continued bullish advance, there is no selling opportunity for the bears in the $5.8-$6.2 resistance area, which has been in place for more than 30 days and has been retested time and time again.

Although bears are still prominent in the bull market, the bulls are unwilling to give up their holdings of the UNI token.

This year, Uniswap lost less than 50 percent of its total closed-end (TVL) value. This week also saw modest inflows, with TVL increasing 11 percent to $5.1 billion.

Enhanced engagement with Ethereum Layer 2s may contribute to the exchange’s popularity. Already incubated by major institutions like Polygon and integrated into other Ethereum-based applications, Uniswap has a large user base.

Featured image from Cryptokio, chart from TradingView.com

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