Uniswap developments on the social front could have this impact on UNI holders

  • Uniswap [UNI] witnessed a spike in social mentions
  • Its weighted sentiment metric also noted an increase
  • However, its network growth and daily active addresses have declined.

According to new data provided by Lunar Crusha social media analytics company, the social mentions of Uniswap reached an all-time high, thanks to increased interest in DEXs after the collapse of FTX. But the relevant question remains: is there more than meets the eye?

Lily Uniswap [UNI] Price prediction 2022-23

Something to note

The spike in social mentions could also be attributed to Uniswapthe latest developments in the NFT space. Uniswap’s weighted sentiment measure has been positive over the past few days. And, the crypto community’s overall outlook towards the DEX has been quite favorable.

Source: Santiment

Even though Uniswap has been able to capitalize on investor interest, there are other areas where UNI needs to improve.

The chart below reveals high levels of order flow toxicity for Uniswap. Toxic flow refers to a situation where the price of an asset market in the future is worse than the execution price after taking into account fees and price impact.

This indicates that it can be difficult for retail investors to generate substantial profits from pools of liquidity on Uniswap.

Source: Dune

Despite this, Uniswap’s revenue has increased by 64.82% in the last 30 days, according to data provided by Messari. Along with this, growth was also seen in terms of transactions, which increased by 66% during the same period.

Uniswap metrics decline

The growth of the DEX network, however, continued to decline, indicating that new addresses transacting for the first time had decreased over the past seven days.

Additionally, daily active addresses on the Uniswap network have decreased, as per the image below. Thus, activity on Uniswap also declined last week.

Source: Santiment

Despite this, Uniswap held the largest market share among all other decentralized exchanges. As shown in the image below, UNI accounted for 53.6% of DEX’s overall volume.

Source: Dune

That said, at the time of writing, United was trading at $5.38. Its price had depreciated by 3.11% in the past 24 hours, according to data provided by CoinMarketCap and meIts volume also fell by 34.32% during the same period.

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