DeFi
DeFi Tokens UNI and MKR Lose Their Chance: What’s Happening?
- Token volume fell 71.30% after hitting a high in March.
- Sentiment began to improve, but participants were hesitant to add liquidity to the protocols.
Two months after recording a dramatic increase in trading volume, Uniswap [UNI] And Maker [MKR] lost part of this figure.
According to data from IntoTheBlock, last week’s volume was only a little over $1 billion.
This represents a decrease of 71.30% since the increase in March. Volume can have a positive impact on price action. For example, when the metric surged in March, the price of these tokens increased.
The numbers are falling
At that time, there was speculation that UNI and MKR could lead the revival of lagging DeFi tokens.
DeFi stands for Decentralized Finance, and these cryptocurrencies have sector-related fundamentals.
Source: In the block
At the time of writing, UNI’s price was 7.50%, down 33.62% in the last 24 hours. MKR also plunged during the same period by 23.17%.
These declines could be linked to the drop in interest in tokens. This could also serve as proof that AMBCrypto inference that DeFi tokens would struggle to compete with meme coins could be valid.
In addition to price action and volume, Uniswap and Maker have been displaced from their place in the ecosystem. Previously, both projects were among the top three in TVL.
TVL is an acronym for Total value locked. The higher the TVL, the more reliable a protocol is perceived. But at press time, Maker was number four, while Uniswap was sixth.
Source: DeFiLlama
Participants are not yet convinced
Despite the price correlation, the feeling around the two tokens differed. For example, Santiment data showed that UNI’s weighted sentiment was 0.181.
Sentiment for MRK, at press time, was -0.242. Positive values of the metric indicate an increase in positive feedback on a project.
On the other hand, the negative readings suggest that the participants are not bullish on a token.
Therefore, it can be inferred that the market offered some goodwill to UNI while the same was not true for MKR. But one thing AMBCrypto noticed is that weighted sentiment for MKR was increasing.
Source: Santiment
Realistic or not, here it is Market capitalization of MKR according to UNI terms
If the metric jumps into the positive zone, interest in the token could improve. In the short term, the trading volume of MKR and UNI may not reach the levels seen in March.
Furthermore, the prices of the token could move sideways for some time. However, if altcoins start to rise simultaneously, the UNI price could return to $10. For MKR, an uptrend could lead the value to $3,300.