According to reports from AMBCrypto, Uniswap [UNI] has surged more than 10%, making it the second-best performer among top-capped DeFi protocols after Aave Protocol [AAVE]. The latest rally saw Uniswap gain 6.89% on Thursday, August 27th, rising from $4.38 to $4.68 before facing rejection near $4.84. The daily trading volume increased significantly by more than 20% to approximately $521 million. This rally was driven by institutional and whale positioning, an increase in burn rate, and growing network activity across major exchanges.
As reported by AMBCrypto, an anonymous institutional wallet withdrew more than 222K UNI tokens worth over $960K after eight months of inactivity. The wallet continues to accumulate, bringing total holdings to 4.837 million tokens valued at $22 million. Additionally, three whale wallets were aggressively buying UNI from Upbit, with these wallets moving over 146K UNI worth $647K from Upbit's hot wallet to a cold wallet. During the same period, 47.563K UNI costing more than $209K were transferred from Binance's hot wallet to Wintermute's market-making address.
According to AMBCrypto, Uniswap's burn rate reached new milestones with the biggest daily burn in USD totaling approximately $590K on August 21st. Ethereum contributed $267K to these fees, while Base and Robinhood Chain accounted for $165K and $87K respectively. The same week saw the second-highest daily burn of 150K UNI tokens, resulting in reduced circulating supply and contributing to the uptrend. The increased burn rate has been a key factor in the token's price appreciation, with the burn being part of Uniswap's fee switch mechanism that uses trading fees to buy and burn UNI tokens, reducing supply and creating deflationary pressure.
As reported by AMBCrypto, Uniswap is facing resistance in the $4-$4.60 zone after breaking above this level, which represents the top of the sideways range. The price is testing the 9-EMA in the 4-hour chart, indicating short-term reduction in bullish strength. However, the price remains far from the 9-EMA on the daily chart. Network activity has increased significantly, with transfer count on Binance rising from 8.57K to 24.3K, showing a 3x increase in activity. Coinalyze data revealed that Open Interest has cooled down slightly, with the funding rate close to neutral levels, while the Spot CVD climbed to underline strong spot demand. Despite the positive price action, the Up/Down Volume shows bears dominating at $2.17 million against $1.26 million from bulls in the $4-$4.60 supply zone.
