Yerevan (CoinChapter.com) – UNI, the native token of Uniswap, one of the biggest decentralized exchanges, has rallied 34.5 percent in the past 24 hours. The token traded at $20.8 in the late European session Monday, after briefly dropping down to $13.1 on Sunday. The Decentralized Finance (DeFi) sector as a whole is exhibiting a bullish trend.
Other Decentralized Exchange (DEX) tokens are also logging substantial gains.
Is The Market Recovering?
The crypto market as a whole saw significant gains in the last 24 hours. Bitcoin managed to gain 8 percent during the said period and traded at $37,526 in Monday’s European session. Ethereum (ETH) gained 17 percent and traded at $2,457. The overall crypto market cap was recovering and gained 11 percent since intraday Sunday.
The long-term bias is still unclear for Uniswap and the market as a whole, as bearish technical indicators influence different coins and tokens. One of them is the death cross. It occurs when a short-term moving average drops below a long-term moving average. Therefore, predictions are still grim for the crypto market as a whole, including Uniswap’s UNI.
But the outcome of the current crisis depends on the investors and traders. Some gave in to the panic and sold their holdings, creating the plunge in the first place.
Others saw an opportunity and decided to buy while the price was low, anticipating gains in the future. The DeFi sector seemed to spark more interest in the last 24 hours since the prices raised significantly. Uniswap, being one of the primary DEXs on the market, followed suit.
What’s driving Uniswap?
UNI was influenced not only by the rising stats across the market but also by Uniswap’s V3 protocol behind the token. according to bitcoinke.io, the V3 protocol is the largest DEX platform after V2.
The new platform was launched at the beginning of May. Although the initial response was not as optimistic as the company hoped, the Uniswap protocol gained momentum and overtook SushiSwap by volume. The V3 could also surpass V2 by the end of the month.
Given the shaky state of the crypto market, it is hard to make solid predictions on any of the tokens and coins. The DeFi sector exhibited a bullish bias across the board. Whether the current breakthrough could lead to long-term improvements for Uniswap is not yet clear. However, the surge in prices reassured many traders to flock back to the crypto market, hence increasing demand, which typically leads to an even higher surge.