Launched in the mid of September, the governance token of DEX Uniswap, UNI, is currently down over 10%. In the first week of November, the DeFi token crashed 72% from its all-time high, achieved right after its launch.
Since then, the 26th largest cryptocurrency by market cap of $803 million has doubled in value, trading at $3.56.
Uniswap actually has been the first DeFi project to hit $3 billion in total value locked (TVL), which is currently down at $2.84 billion. Meanwhile, it has 3.1 million ETH, 29.5k BTC, and nearly 190 million DAI locked.
The project, however, maintains its dominance in the market at 21.18%.
Interestingly, in the next few hours, UNI farming on Uniswap Protocol will end with about $1 billion to be released into the market.
As it stands, around $2.3 billion funds are deployed farming the native token, and with Ethereum being the reference token, it means there is currently $1.1 billion ETH locked. Although it remains to be seen how much ETH will actually leave, the portion that chooses to stay will get to enjoy the high fees.
This could still mean some selling pressure for Eth, which is trading just around $462, already “at resistance with a potential double top.”
With this new influx of money flowing into the DeFi sector, it’s to be seen where it will exactly move to.
It is possible this money flow will potentially make its way to SushiSwap. While liquidity has been coming off its recent highs on Uniswap, SushiSwap’s liquidity has increased substantially.
Even SUSHI token is currently enjoying gains of over 17% at $1.36, up 109% month-to-date (MTD) basis compared to Uniswaps’ 62%.
$SUSHI is showing no signs of slowing down.
The crypto-asset is up 125% over the last 7-days and on-chain data is looking strong
– Daily active addresses monthly high with 1.45k addrss
– Trx >$100k monthly high
– Perpetual Swaps OI highest ever with $18m pic.twitter.com/xWWvHaBCPM
— intotheblock (@intotheblock) November 16, 2020
However, both are still cheap when it comes to their valuations based on the price/sales ratio. While Uniswap P/S is around 10x and SushiSwap’s even much lower than that, its competitors like Curve and Balancer trade close to 80x.
In other news, over the weekend, the decentralized exchange Uniswap’s app interface went down due to issues with its gateway provider Cloudflare.
The automated market maker (AMM) built on top of Ethereum took to Twitter to share the outage issues and point out how “now is a good time to remember the benefits of decentralization.”
Unlike a CeFi, which, if goes down, has no way to access it, a “true DeFi on Ethereum there are no central points of failure” and “there is no downtime,” as pointed out by Uniswap creator Hayden Adams.
It’s an immutable smart contract on Ethereum. I have no ability to turn it off
If you’re talking about frontends there are ~50 independent ones
Plenty of volume is on-chain and doesn’t go through any frontend
I could try tweeting “can everyone please stop trading” though
— Hayden Adams 🦄 (@haydenzadams) October 7, 2020
As can be seen with Uniswap, it is available on other IPFS gateways, can be run locally, easily be forked and re-hosted, and can be traded over Uniswap natively from Dharma and other Ethereum wallets. One can also trade on Uniswap through a wide range of aggregators, a command-line, and over Etherscan.
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