Uniswap (UNI) 'Stalls' at $4.57...Whales Accumulate at Low Prices

▲ Uniswap (UNI)/AI generated image

While Uniswap (UNI) was undergoing a correction at $4.577, large withdrawals from Binance surged to a five-year high, indicating accumulation by whales at low prices.

According to the cryptocurrency media outlet The Crypto Basic on August 4 (local time), CryptoQuant analyst Darkfost stated that the monthly average of the top 10 UNI withdrawals from Binance reached its highest level since 2021. The monthly average withdrawal volume exceeded 7,200 UNI, and on some trading days, the combined withdrawals of the top 10 transactions surpassed 10,000 UNI.

Large-scale withdrawals were concentrated during periods when the UNI price plummeted. The analysis suggests that as the volume of assets moved from exchanges to external wallets increased, large investors utilized the price weakness as an opportunity for accumulation. Darkfost commented, “This trend shows that UNI accumulation is continuing, centered around Binance's largest investors.”

UNI is currently down over 91% from its all-time high of approximately $45 recorded in 2021. On June 6, it fell to $2.316, marking its lowest point in about five years. It then rebounded to $4.577 but has since undergone a correction as its upward momentum weakened.

The recent rebound was influenced by Uniswap v4's fee switch feature and the introduction of a UNI buyback and burn mechanism. According to Santiment, UNI increased by approximately 19% from $3.83 to $4.54 between July 29 and 31. During the same period, new addresses surged to 510 on July 30 and 582 on July 31, significantly exceeding the usual July range of 250 to 320.

Active addresses also recorded 2,341 and 2,457 respectively during the same period, surpassing the usual level of 1,300 to 1,700. On July 30, 142 whale transactions exceeding $100,000 also occurred. Santiment assessed that the continued network growth even after the price rally weakened is a sign indicating potential for increased usage beyond a short-term rebound.

[Article Summary]

-The monthly average of the top 10 UNI withdrawals from Binance exceeded 7,200 UNI, reaching its highest level since 2021.

-UNI rebounded to $4.577 and then underwent a correction, but large investors' withdrawals from exchanges actually increased.

-After the introduction of the fee switch feature, new and active addresses significantly exceeded their usual levels.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*