- Despite UNI’s full unlock, over 700 million tokens remain held by key stakeholders like a16z.
Net outflows signal UNI accumulation, but market volatility looms as large holders await better conditions.
As a seasoned crypto investor with a knack for deciphering market trends and a penchant for long-term plays, I find myself intrigued by Uniswap’s [UNI] current state. Despite the full unlock of its supply, the majority of tokens remain in the hands of key stakeholders like a16z. This cautious approach has kept the market stable and prevented a sudden influx of tokens into circulation.
Uniswap [UNI] has reached a significant milestone, with 100% of its supply now fully unlocked.
Approximately 258.3 million UNI tokens out of a total supply of 1 billion are presently being traded on the market, as per an assessment by EmberCN. This means that just about a quarter (25.83%) of all UNI tokens are currently in circulation.
Most of the supply remains locked within the community treasury, with team members, investors, and advisors holding on to the majority. So far, they haven’t distributed a substantial amount of it.
Distribution and current circulation
As an analyst, I’ve found that approximately one-seventh of the total UNI supply was allocated at the outset through liquidity provider (LP) staking rewards and airdrops to early adopters. These tokens have since made their way into the market, contributing to the current circulating supply.
To clarify, the balance of 83% was distributed among the community fund, crucial partners such as the team, investors, and advisors.
So far, all 430 million units of UNI from the community’s reserve have been released, yet approximately 30 million UNI have been circulated in the market.
Similarly, out of the 400 million UNI that was distributed among the team, investors, and advisors, it has all been released. However, only approximately 58.16 million UNI have been traded so far.
The careful strategies adopted by key players, such as a16z among others, have helped maintain a steady market value by avoiding abrupt increases in the supply of tokens entering circulation.
Holders show long-term confidence
Even though all UNI tokens have been released, there hasn’t been a substantial selling spree from major investors.
Keeping more than 700 million UNI tokens suggests that significant investors have a firm belief and intention to maintain their ownership, demonstrating a strong holding stance.
This action could be instrumental in curbing a significant expansion of the available supply, possibly leading to a more stable market condition.
This holding pattern could indicate a lasting belief in Uniswap’s future, as entities like a16z seem to be biding their time, choosing to withhold their tokens until opportune moments when it seems advantageous to introduce more tokens into circulation.
Reducing the number of UNI tokens in circulation might influence future market tendencies significantly, particularly if major shareholders decide to offload more of these tokens.
UNI outflows signal accumulation surge
Over the past few weeks, the UNI market has experienced a mix of investments and withdrawals, according to data from IntoTheBlock. Specifically on September 16th, there was a net withdrawal of approximately 62,350 UNI, suggesting that more tokens were taken off exchanges than put onto them.
It appears that those with UNI might be planning to keep it staked or held over a longer period, instead of quickly selling it.
Over the past week, there’s been a 19.38% rise in net inflows, indicating that larger investors might be amassing more holdings.
Over the last 30 and 90 days, we’ve observed a pattern of decreasing investments (net outflows), which could suggest a potential decrease in large-holder involvement as time goes by.
Even though there were certain events or factors affecting UNI, its price has shown resilience, experiencing a 2.55% growth over the last day and a 1.09% uptick in the past week. This indicates that the market seems to be handling these fluctuations effectively.
Read Uniswap’s [UNI] Price Prediction 2024–2025
Currently, the value of UNI stands at approximately $6.63 per unit. In the last 24 hours, there have been trades worth about $138 million for this cryptocurrency. With a circulating supply of around 750 million UNI tokens, Uniswap’s market capitalization is close to $5 billion.
Based on current trends, there might be indications that some are accumulating assets. However, increased market turbulence may occur if significant shareholders choose to offload additional stocks in the future.
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2024-09-17 14:48