While the token, UNI, devalues and dries out its trading volume, the amount blocked at Uniswap grows significantly.
UNI, the governance token of the Uniswap decentralized exchange rate, fell 30% overnight, from its historical high of $ 7.37 to its current price of $ 5.13. Turnover for the currency has also dropped, from yesterday’s daily average of $ 6 billion to $ 2.2 billion today. But while its price has dropped, business at Uniswap is better than ever.
UNI, launched on Wednesday, is the latest high-profile governance currency coined by a decentralized financial protocol (others include Compound’s COMP and yearn.finance’s YFI). Uniswap is an automated market maker, which means that it facilitates token exchanges. To exchange, say, ETH for UNI, you can use the pairing reservations provided by other users.
UNI’s price skyrocketed shortly after launch, going from $ 1 on Thursday to a peak of $ 7.37 on Saturday. The main exchanges, among them Coinbase, Binance and Bitfinex, listed the token. But the UNI bomb did not last – although, with only four days of negotiation, no conclusions can be drawn about the currency’s fate.
Currency is a response to SushiSwap, a Uniswap clone that launched its own governance token, SUSHI. Like UNI, SUSHI is achieved using the protocol. SushiSwap took business from Uniswap, so Uniswap coined its own governance token.
So far, the plan has worked. On September 17, the day after the launch, customers had blocked $ 748 million in cryptocurrencies on Uniswap’s smart contract, according to DeFi Pulse. Now, $ 1.93 billion is blocked in their smart contracts. Meanwhile, the amount of cryptocurrencies blocked at SushiSwap has decreased, from a peak of $ 1.42 billion on September 12 to $ 516 million today.