Uniswap, a leading decentralized exchange (DEX), is experiencing a curious trend. While the number of monthly active users is surging, the total value locked (TVL) on the platform has declined significantly. This disconnect suggests a shift in how users are interacting with Uniswap.
Here's a possible explanation:
Smaller, Swifter Trades: Traders might be using Uniswap for frequent, smaller trades to capture short-term gains rather than committing to larger, long-term investments. This reduces the overall locked value on the platform despite increased activity.
Looking ahead, a breakout above $11.84 for the UNI token could signal renewed bullish sentiment. However, this resistance level has been tested before, making a successful surge uncertain.
June 2024, Cryptoniteuae