Uniswap, the largest decentralized exchange by trading volume, has experienced a 35% drop in price since Q1 2023 peaks. Despite this, on-chain data from Etherscan indicates that the number of UNI holders has steadily increased over the past two days, reaching over 370,100 as of May 26. Although UNI prices have remained stable, there has been a correlation between the demand for UNI and the increase in token prices.
According to the UNIUSDT chart, UNI prices have found support around $4.9, but have increased by approximately 10% over the past two weeks, rising to $5.4. Several factors could have contributed to the increased demand for UNI, the governance token of Uniswap.
One bullish announcement was the release of Uniswap’s mobile wallet on May 23 from what Uniswap Labs, the team maintaining Uniswap, said was “Apple jail.” This announcement is significant because as more users opt for the Uniswap Wallet, the demand for the decentralized exchange could rise, increasing its dominance and stature. Uniswap Labs has already stated that their wallet could support the trading of tokens across several platforms, including Ethereum, Polygon, Optimism, and Arbitrum.
Additionally, there is speculation that Uniswap could launch on Coinbase’s Base, a layer-2, open-source, and EVM-compatible platform. The proposal will undergo a “temperature check-up” to gauge community support before voting starts. Supporters of this proposal include GFX Labs, one of the largest UNI holders and advocates for Uniswap’s expansion to other chains.
While it is unclear whether the increased demand for UNI has been spurred by these developments, it is evident that the project is generating interest. This may support future token prices.
In conclusion, despite the drop in UNI prices since Q1 2023 peaks, there has been an increase in the number of UNI holders. Bullish announcements regarding Uniswap’s mobile wallet release and potential launch on Coinbase’s Base have generated interest and could contribute to increased demand for UNI in the future.