Uniswap Strongly Bounces Back 17% Leading the DeFi Sector to Release Positive Signals

The leading decentralized exchange Uniswap's governance token UNI surged against the trend today by 17.44%, with the price rising to $6.37, standing out in a generally declining market and becoming the leader in the recovery of the DeFi sector.

This rise of UNI is not an isolated event; it is supported by multiple positive factors. Firstly, there is an improvement in the fundamentals of the Uniswap protocol itself, with the average daily trading volume in December stabilizing at $1.5-2 billion, an 8% increase from November, indicating enhanced user activity. Secondly, the overall sentiment in DeFi is warming up, with Ethereum's TVL holding above $70 billion, and active loan volumes for lending protocols like Aave remaining at a high level of $20-25 billion.

From a market cap perspective, UNI currently has a market cap of $4 billion, ranking 38th, which is still 67% lower compared to its peak of $12 billion, indicating that its valuation is at a historical low. Technically, UNI has built solid support in the $6.00-6.20 range, and after breaking $6.40, it is expected to challenge the previous high of $7.00.

It is worth noting that UNI's increase occurred in an overall market fear index of 28, where 75% of coins are falling, yet UNI managed to strengthen against the trend, indicating that funds are seeking certainty. As a fundamental infrastructure of the crypto market, DeFi possesses real income and users, showing stronger resistance to declines.

On-chain data shows that the net outflow of UNI tokens from exchanges reached 2,800,000 in the past 48 hours, valued at approximately $18 million, indicating that holders tend to withdraw coins to cold wallets for long-term holding. This behavior typically signals the formation of a price bottom.

In the short term, whether UNI can maintain its upward trend depends on two factors: one is whether Ethereum can stabilize at $3,000, and the other is whether other DeFi leaders like AAVE and CRV can follow suit. If the sector rotation starts, UNI is likely to continue its strength.