Uniswap, like the other altcoins in the market, saw value cuts in the past 24 hours; worse for the likes of UNI that are having a bad week. The latest market data shows that the token is down nearly 9% since last week, bad news for anyone interested in putting capital in Uniswap.
In the past few days, the market has seen a good boost after Bitcoin’s momentous rise. Today, however, took a turn for the worse for investors and traders on altcoins as the premier cryptocurrency dipped in the 24-hour frame, making the market overreact.
However, there might be a light at the end of the tunnel as Uniswap’s dev team creates ripples within the crypto space.
Platform Usage Goes Up
Uniswap’s official X account posted that the platform experienced a 26x increase in contracts deployed on the network. The number came from Dune, a crypto data aggregator.
The number of contracts building on the Uniswap Protocol has done a 26x since 2021
Built different 🦄 pic.twitter.com/YwUxdLOmQB
— Uniswap Labs 🦄 (@Uniswap) July 21, 2024
Since the start of July, Uniswap’s network saw an impressive 778,943 contracts deployed on the platform (see second chart). This is huge, considering that Uniswap now has a large following in the world of DeFi.
According to DeFiLlama, the total value locked (TVL) in DeFi is $108.43 billion. This amount is part of the rising trend since the start of the year. Since then, Uniswap maintained its seventh spot as the most-used platform for decentralized finance and staking.
This makes Uniswap as one of the most trusted platforms for DeFi, making their position much stronger compared to its competitors.
Deep Cleaning Underway
With the higher usage of its network, Uniswap is hosting a bug hunt event on the Cantina platform with an up to $2.25 million reward depending on the severity of the vulnerability discovered by the participant.
These metrics might shed light on the future movement of the token, which may be on the brighter side of things compared to today’s bearishness.
Time’s A-Ticking For investors
The token returned to its May strongpoint around the $7.618 support level which, if broken, will lead to many problems for investors. The bulls should defend this support level if UNI has a shot at an early rally this month, but if the bulls fail, this will lead to the token returning to pre-June levels.
However, Uniswap’s strong market position along with its dedication to the security of its platform gives it an edge in maintaining investor trust on the token.
If the $7.618 line is defended successfully, UNI has a shot at grabbing $9.306 in the next few days or by the start of August.
Featured image from Pexels, chart from TradingView