Uniswap (UNI), the largest decentralized exchange, is showing resilience even as its price remains well below 2023 highs. On Monday, UNI traded at $6.50, hovering just above its year-to-date low of $4.92, and sitting on a long-term support zone.
Massive Volume and Revenue Growth
According to DeFi Llama, Uniswap’s trading volume surged to over $73 billion in May, up from $53.2 billion in April—marking the largest monthly increase since February, when the protocol moved $78 billion in volume.
The Ethereum mainnet accounted for the majority of this activity, followed by Arbitrum, Unichain, and Base. Notably, Unichain, launched by Uniswap earlier this year, already surpassed $14 billion in volume—eclipsing Cardano’s $4.9 billion.
Meanwhile, TokenTerminal data shows Uniswap has generated over $380 million in fee revenue in 2024 so far, outpacing even Ethereum, which recorded $275 million.
Uniswap (UNI) Price Lags Behind Metrics
Despite strong fundamentals, UNI’s price is still 65% below its December high, partly due to increased competition from decentralized exchanges like PancakeSwap, which alone handled nearly $100 billion in trading volume this month.
Another bearish signal is whale activity. Data from Santiment shows UNI held by whales dropped from 850 million tokens in December to 748 million, suggesting large-scale sell-offs and distribution pressure.
Technical Analysis: Megaphone Pattern In Play
From a technical perspective, UNI’s weekly chart shows it’s following a bullish megaphone pattern, with diverging trendlines pointing to high volatility and a potential breakout.
The price is currently bouncing off an ascending trendline connecting major lows since June 2022. If UNI breaks above the upper boundary of the megaphone, a rally toward $19.24 (last November’s high) could be in play—representing a 200% gain from current levels.
However, a breakdown below the lower trendline would invalidate the bullish setup and could open doors to new lows.
You might enjoy : Ripple’s Bold $110B Play: Why XRP Could Skyrocket Amid Hidden Road Deal