Many DeFi assets have noted a strong surge in popularity over the past few months. UNI, the native currency of Uniswap, is setting new monthly highs across multiple metrics. An intriguing development, even though the price of this token is not changing all that much.
Monthly UNI High Metrics
Similar to other cryptocurrencies, DeFi tokens and assets need to record new highs across the different metrics every now and then. Some will have an easier time doing so compared to others. Uniswap’s native UNI token appears to check the right boxes in this regard. Several key metrics show promising short-term price momentum, even though the token’s value remains unchanged.
The first metric to look at is the number of exchange withdrawals. Similar to major currencies like Bitcoin and Ethereum, an increase in withdrawals is a healthy sign. Lowering the circulating liquidity will often help address market volatility and can potentially boost market prices. For UNI, there is now a one-month high in exchange withdrawals.
A second metric worth looking into is the number of new addresses. UNI Records another one-month high in this segment as well, with just over 124 new addresses per the seven-day moving average. A prominent increase compared to the past few weeks, although there is still room for improvement. The impending launch of Uniswap V3 may have something to do with this trend.
Both of these statistics can indicate there is future UNI price momentum on the horizon. Whether that momentum will be beneficial is a different matter. Markets in this industry tend to march to the beat of their own drum, rather than follow logic.
UNI Price Isn’t Moving Much
Even with the prominent statistics outlined above, the price of Uniswap’s native asset is not moving much. The value remains at a status quo, yet UNI notes losses against both Bitcoin and Ethereum. A clear indication of how the number of new addresses and exchange withdrawals is not affecting the market volatility as of yet. If the withdrawals continue to pile up, a minor change may occur in the coming weeks.
Additionally, one has to wonder how much higher the UNI price can go. It is already above the $40 level for some time now, putting its market cap at over $21 billion. That is a relatively high value for a token that only serves as a governance token. Although it can be used for DeFi yield farming, that only provides speculative value.
It will be intriguing to see what the future holds for Uniswap’s native token. Like other DeFi assets, they have all had a good run in recent months, but there is a limit to how high prices can go. Pushing beyond the current value may be a stretch too far, even for the asset of the biggest DEX in the world.