The Uniswap price has declined significantly over the past few months, mirroring the performance of other altcoins that have also plunged sharply. The UNI token peaked at $19.46 in December of last year, then dropped to $5, a 73% decline that has erased billions of value. This article examines whether Unichain’s growing market share will be enough to boost its price.
Uniswap’s Unichain is Doing Well
The biggest Uniswap news this year has been the release of Unichain, its layer-2 network that was launched a few months ago. Its goal is to provide users with an easy-to-use network for safely and more cheaply handling trades.
Data shows that the Unichain network is rapidly gaining momentum and expanding its market share. For example, it has attracted 20 developers, including Stargate, Venus, Compound, DyorSwap, and UCS Finance.
The total value locked (TVL) in Unichain has increased to over $277 million, while its stablecoin assets stand at $146 million. Its growth is notable as its TVL is about to cross the total value locked (TVL) of Ethereum, which stands at $292 million.
The volume handled on the Unichain network has increased significantly over the past few months. It increased to $112 million over the past 24 hours and to $271 million over the past seven days. This brings its cumulative total in the last 30 days to over $300 million.
Therefore, Unichain momentum will continue to benefit Uniswap, as the fees generated will be converted into UNI and incinerated.
Meanwhile, Uniswap’s revenue has surpassed that of the Ethereum chain this year. TokenTerminal data indicates that it has generated $299 million this year, compared to Ethereum’s $234 million.
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Uniswap Price Analysis
The 3D chart shows that the UNI price peaked at $19.45 in December last year and then crashed to a low of $5. It has moved below the ascending trendline that connects the lowest swings since 2023.
The 50-day and 100-day moving averages have made a bearish crossover pattern, a well-recognized bearish signal. Additionally, momentum oscillators, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), have shown a continued downward trend.
Although Unichain’s growth is impressive, technical indicators suggest that the UNI price will continue falling in the near term. If this happens, the next point to watch will be at $3.85, its lowest level in 2023, which is about 25% below the current level.
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