How Uniswap’s WoW revenue jumped amid USDC-TradFi FUD

  • The Uniswap revenue increased by 63% as users considered trading USDC pairs on the DEX.
  • While the TVL also climbed, UNI holders resisted accumulating. 

Panic spread across the crypto ecosystem as Circle [USDC] opened up about its exposure to the Silicon Valley Bank (SVB) contagion. And as expected, the market experienced a brief downside.

But the despair was not without ecstasy as Decentralized Exchange (DEX), Uniswap [UNI] made a 63% Week-on-Week (Wow) hike in supply-side fees and overall revenue.

Realistic or not, here’s UNI’s market cap in USDC’s terms

Turbulence in TradFi but a reviving DeFi?

According to Token Terminal, the trading volume was the catalyst responsible for the increase. The trading volume here represents investors’ participation in using the Uniswap platform for transactions.

It is, however, noteworthy to mention that the total network fees milestone was only possible because of the USDC weekend depeg.

Recall that centralized exchanges (CEXes) including Binance and Coinbase almost immediately halted USDC trading on their platforms as the unfortunate event went public. But on several DEXes, USDC dominated the trading pair ranks.

On 11 March, the protocol’s founder Hayden Adams confirmed that trading volume hit $12 billion. And this occurred after the USDC issue with the Tradtional Finance (TradFi) institution.

Therefore, the landmark was able to impact the Uniswap Total Value Locked (TVL). The TVL measures how willing investors are to lock up funds in DeFi contracts. At press time, the Uniswap TVL increased by 5.24%, according to DeFi Llama.

Uniswap TVL Uniswap TVL

Source: DeFi Llama

The above data means that investors’ trust in triggering unique deposits on the automated Ethereum [ETH]-based exchange had improved.

Nonetheless, since the stablecoin began its sojourn to regain the dollar peg, overall on-chain volume on Uniswap had reduced. But was there any impact on the UNI token?

UNI: It’s “no allegiance” season

Well, details from Santiment showed that UNI’s 30-day Market Value to Realized Value (MVRV) ratio recovered to -8.214%. The MVRV ratio acts as an indicator to spot investors’ motive to buy or sell as a result of an asset’s rise in value or otherwise.

Since UNI emerged on an increasing trend, it meant that there was more intent to sell the token over the last few days.

But this decision could be linked to short-term holders of the token who have made about 5.24% gains in the last 24 hours. Despite the increase in value, the discernment toward UNI did not heighten. 

Uniswap MVRV ratio and weighted sentimentUniswap MVRV ratio and weighted sentiment

Source: Santiment

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At press time, the on-chain analytic platform revealed that weighted sentiment was -0.208. This implied that the majority of messages publicly written about UNI were not necessarily on the positive side.

The reluctance to display renewed faith in the token was also shown by the active addresses. At the time of writing, the UNI active addresses which surged briefly to 960, were down to 858. This signifies that speculation around the cryptocurrency was not high while UNI exchange hands at $5.76.

Uniswap active addresses and the UNI priceUniswap active addresses and the UNI price

Source: Santiment

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