In Wednesday trading, the week-old UNI token by Uniswap turned out to be the winner, as its price rebounded and its market cap ended up exceeding $100 million in the last 24 hours. According to data from CoinGecko, there has been an increase in the price of the UNI token by almost 20%, as it went from a value of $3.80 to more than $4.60 at the same time frame. This prompted the market capitalization of the coin to jump by almost $120 million, which means it went from $460 million to about $580 million. This made UNI the 33rd biggest crypto in the market as it had a market cap of about $581 million and its individual tokens were trading at a value of about $4.75.
In the last few days, increasing concerns about a 2nd expected lockdown in UAS as well as Europe has ignited a macro sell-off and this caused a serious impact on all the digital assets. Since Saturday, the total market cap of this market has been shaved off by almost $30 billion. UNI also faced the same circumstances. On Friday, the token had a record-high of about $8.40, but across the weekend and entering the new week, its price had hit a new low of $3.44 on Tuesday.
However, the price rebound that it has experienced within the last 24 hours is quite different from the lackluster movements of other, more established, and popular cryptocurrencies in the same market. The largest digital asset by market capitalization, Bitcoin has been stuck somewhere between $10,400 and $10,500, since it fell on Monday by $500. The second-largest crypto, Ether has increased in value of about $4 in the same time frame. Moreover, bitcoin’s net inflow into exchanges, which indicates that holders are prepared to sell, has also risen to levels that hadn’t been seen since the market crashed on March 13th.
UNI was launched last Wednesday and it has been designed for powering on-chain governance decisions on Uniswap. This is one of the most popular and renowned platforms in the decentralized finance (DeFi) market. There is a possibility that the price of UNI could be protected from some of the ‘real world’ macro effects that have pushed other more widely renowned and established digital assets into trouble because this DeFi coin is barely a week old. However, there is also a possibility that it didn’t suffer from the same effects because the market is expecting greater institutional involvement in the whole DeFi space.
On Wednesday, it was reported that Panxora, a crypto money manager is looking to introduce a new DeFi hedge fund and they are seeking to raise $50 million for it. According to their CEO Gavin Smith, this new branch of the firm seems to have ‘great potential’. Indeed, it could be true because even though there isn’t a major surge in all DeFi tokens across the board, there was a 7% increase in the native tokens of two alternative protocols, yEarn and Band, within the last 24 hours.