Uniswap’s daily active addresses and new wallets reached new highs.
UNI’s Chaikin Money Flow suggests that now could be a good time to buy.
The number of daily active addresses on Uniswap [UNI] climbed to a two-year high as the meme token experienced an unprecedented rise in value over the past few weeks.
According to the on-chain data provider, “Daily active addresses on Uniswap are surging to their highest level since May 2021.”
The decentralized exchange (DEX) recorded 25,409 active addresses as of May 9. Uniswap’s daily active addresses have been rising since the beginning of the year, thanks to the overall market bullishness in the first quarter and the meme token frenzy of the past few weeks.
Additionally, Delphi Digital found that the number of unique wallets on Uniswap rose to its highest level in nearly two years, recording nearly 80,000 users. This surge marks a significant increase in the number of unique wallets created on the DEX since May 2021.
While Uniswap’s network activity has grown quite nicely over the last year, data from Token Terminal shows that some of the DEX’s key ecosystem metrics have declined. For example, last year’s trading volume was $519.3 billion, down 38.30%.
A natural consequence of the decline in Uniswap’s trading volume is a drop in fees, with the protocol’s annualized fees also falling by 22.05%.
Additionally, data from DefiLlama also shows that Uniswap’s total locked value (TVL) has been on a downward trend over the last year.
The DEX had a TVL of $3.92 billion and has since fallen 24%. Additionally, the TVL of Uniswap V3, the protocol’s most commonly used deployment, has also fallen 15% over the same period.
While UNI’s price is trending down on the daily chart, its Chaikin Money Flow (CMF) remains in an uptrend at 0.10. This bullish divergence is common when an asset’s price drops to new lows but its CMF moves in the opposite direction.
Therefore, it is often considered as a buy signal as it shows that the price might be about to correct upwards.
However, it is key to point out that selling pressure outweighed buying momentum at press time. As a result, key momentum indicators were found to be below their respective neutral points. Likewise, the Aroon Up Line (orange) was at 14.29%.
When an asset’s Aroon Up line is close to zero, the uptrend is weak and the most recent high was reached a long time ago.
Conversely, UNI’s Aroon Down Line (blue) is pegged at 71.43%. When the Aroon Down Line approaches 100, it indicates that the downtrend is strong and the most recent lows were hit relatively recently.
