Uniswap's native token, UNI, began the month trading near $7.50 and remained stable for the first two weeks. However, a sharp mid-month decline saw it fall below $6.50. Since then, the asset has been attempting to recover, primarily trading between $6 and $6.8.
Despite several minor rebounds, UNI has not yet regained its early-October price levels. This subdued performance occurs amidst weeks of low activity across the Decentralized Finance (DeFi) sector. Nevertheless, whales on the Binance exchange are demonstrating a renewed interest in UNI.
On-chain data provided by CryptoQuant highlights a significant increase in UNI outflows from Binance. This surge is particularly evident in the top 10 largest transactions, which are commonly associated with whale wallets.
UNI Activity on Binance
The pattern of UNI tokens being transferred from exchange wallets to external addresses is often interpreted as a sign of accumulation or strategic repositioning by major investors. Recent data indicates that Binance experienced a daily peak of 17,400 UNI in whale outflows, with a monthly peak of 5,250 UNI.
This represents the highest level observed in three months. Such movements are noteworthy, as whales are recognized for their decisive actions and typically enter positions only when they perceive clear technical or fundamental indicators. Their increasing engagement with UNI coincides with the token's ongoing recovery from the market correction that started in July.
While UNI has not yet fully bounced back, the growing presence of whales suggests a potential shift in market sentiment. The rise in substantial transactions indicates that key players may be quietly positioning themselves for a possible resurgence, hinting at the potential for new momentum to build within the Uniswap ecosystem.
Governance and Valuation Concerns
Previously, Bitwise Chief Investment Officer Matt Hougan commented that Uniswap appeared undervalued when its market capitalization was just over $6 billion. He argued that if Uniswap were a traditional company, it would rank among the top 400 largest global financial services firms. The market capitalization has since experienced a significant decrease and is currently valued at $4.13 billion.
A research paper published on arXiv earlier this year raised questions about the extent of Uniswap's decentralization. The study identified indications of centralization in the structure of its token network and liquidity pools. Specifically, a substantial portion of the total value locked (TVL) is concentrated within a limited number of key tokens and pools, suggesting an uneven distribution of influence within the network.
These findings are consistent with more recent data from Token Terminal, which reported that Uniswap has generated approximately 340 millionaires through its UNI governance token. Among the roughly 381,600 UNI holders, a small group possesses wallets valued at over $1 million each.