With the recent news that the Uniswap Foundation sold approximately $29 million worth of UNI in the past 48 hours, many market observers are wondering about the potential implications of this move on the cryptocurrency’s performance. The story unfolds with the UNI token’s price showing signs of decline after a period of significant appreciation.
Unveiling the Uniswap Foundation’s UNI Sales
The crypto community was set abuzz when Lookonchain revealed a substantial transaction on Etherscan, initiated by the Uniswap Foundation. The foundation transferred a whopping 6.8 million UNI tokens, equivalent to around $29.16 million, to a new address. This move came on the heels of another significant sale on 23rd October, when the foundation offloaded 3 million UNI tokens, valued at $13 million, on the Kraken exchange.
The timing of these sales, coinciding with a positive price trend for UNI, hints at a possible sell-off strategy. This has led to speculation that the market might be bracing for another sell-off wave.
Impact on UNI’s Price Trajectory
Until recently, UNI had been enjoying a string of upward trends, pushing its price beyond the $4 mark. However, following the foundation’s sales, the price started to show signs of retreating. Preceding this decline, UNI had witnessed an impressive near 10% gain, indicating a bullish trend. But by the end of trading on 24th October, UNI had recorded a loss of more than 3.5%.
At the time of writing, the price had further decreased by nearly 1%, hovering around $4.1. The bullish trend that UNI had been riding was halted by this price decline. The price trend suggests that the recent sell-off may have negatively affected UNI’s performance.
Uniswap’s TVL Also Affected
The effects of the sell-off were not limited to UNI’s price. Uniswap’s Total Value Locked (TVL), according to DefiLlama data, started to show a slight decrease. Previously, the TVL had been on a positive trajectory, with an impressive addition of over $100 million in the past seven days. Although the decline isn’t substantial at this point, it could become more pronounced if the price decline continues.
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