Uniswap has been in a downtrend since early May
Recently, Uniswap Labs restricted access to a series of tokens on the protocol interface it supports, due to regulatory issues. This managed to stir up the UNI HODLers. Despite the less-than-welcome move, the token value has ended up appreciating more than 6% in the last 24 hours.
So, at this juncture, what makes the most sense? Hold Uniswap or exit the market? This can be better measured after looking at your data in the chain.
Unaffected volumes and TVL
UNI’s volume, at the time of writing, hardly seemed to be affected. According to CoinMarketCap data, aggregate volume stood at $371.46 million as of July 22nd. The same on the 23rd reflected a slightly inflated figure of $394.61 million. When compared to previous data, the magnitude of the fluctuation appeared smaller.
In addition, the total blocked amount (TVL) at Uniswap was also not impacted. The same has happened in the $5 billion range in recent days.
Decrease in transaction size but increase in active addresses
However, there was one metric in particular that felt the pinch. UNI’s average transaction size started to gain traction on 21 July. However, the same could not persist for long and on the back of the regulatory situation, this metric has witnessed a sharp decline from $173k to $84.6k in just the last 24 hours.
The total number of addresses associated with UNI witnessed a slight increase from 249.03 thousand to 249.63 thousand in the same period. This metric particularly tracks the total number of holders of a crypto asset. An increase in the number of HODLers is definitely a good sign. So, if it continues to rise, the price of UNI could rise in the coming days.
Notably, Uniswap was trading at $18.55 at the time of this writing. Only 39.22% of addresses were profitable and 54.31% of them have losses. The remaining addresses remained in a no-gain and no-loss state. Therefore, for all addresses to break even, the asset price needs to stay above this $19.86 level.
In fact, a break-even price is the change in the value at which an asset must be sold to cover acquisition costs and HODL. The numbers mentioned have barely fluctuated in the last 24 hours. Consequently, holding the asset until the “break even” would make more sense at the moment.