DeFi projects and their native tokens remain incredibly popular. This point is illustrated further by the recent Uniswap token airdrop. UNI is currently ranked 4th among all crypto assets in terms of trading volume.
The Success of UNI
Everyone who successfully used Uniswap before September 1,2020 has been eligible to claim 400 UNI tokens. Depending on the liquidity provided by said user, the amount of claimable tokens might be much higher. Some people received thousands of tokens, although those are major liquidity providers first and foremost. Most normal users will receive 400 UNI, which is a respectable sum.
Despite an initial price of roughly $3 per UNI token, things have certainly improved ever since. The token is currently valued at over $7, although it has peaked at $8.4 before. There is a lot of trading activity going on. Plenty of people who sold their tokens immediately now regret it and want to buy some back.
Looking at the trading volume, UNI ranks in fourth place among all crypto assets. It is behind USDT, Bitcoin, and Ethereum, which isn’t entirely surprising. It is normal for new tokens to generate a lot of excitement, as they will be subject to speculation at all times.
With nearly $4.7 billion in trading volume, UNI seems to be doing very well. It quickly got listed on most major exchanges, both centralized and decentralized versions. Surprisingly – or not – the majority of trading volume comes from Uniswaps UNI/ETH pair. Coinbase
Pro is in second place, ahead of BiKi, KuCoin, and Coinsbit.
Great news for Liquidity Providers
Owning the UNI tokens now serves different purposes. Some will effectively use it as the governance token it is intended to be. On the other hand, the liquidity of UNI/ETH is rising, and providers can earn decent trading fees from adding more liquidity. After all, Uniswap is designed to share trading fees with LPs, even for its own UNI pairs.
It is safe to say the launch of UNI has been beneficial to Uniswap. It is now the leading platform in terms of Total Value Locked, or TVL. With $1.85 billion under management, the DEX is performing quite well. Over $890 million in TVL has been added in the past two days alone. Sustaining such a level of growth will be difficult, however.
It will be interesting to see how the UNI token situation pans out. Attributing a high value to a governance token seems like a strange market trend. At the same time, Uniswap is the original “unicorn” of DEXes. Even the forked projects are not making much of an impact any longer.