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    Market volatility leads to 12% gain for UNI

    msmarkBy No Comments3 Mins Read

    With the broader market swing suggesting that most cryptocurrencies are on an upward trajectory, Uniswap has continued its upward trajectory, capturing some of the broader market momentum. According to Queen GeckoThe token’s value has risen by about 12% since last week despite the market falling slightly yesterday, August 21.

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    Uniswap’s position within the crypto community remains largely intact, especially after its recent on-chain development which is showing exceptional growth as a market. However, there are some areas where the platform is showing some weakness, which puts UNI’s long-term position into question.

    Uniswap sees massive increase in trading pairs on Uniswap v2

    In X’s latest post, Uniswap subscriber Dune query submitted by Austin Adams, a research fellow at the platform. He revealed that since the release of Uniswap v2 It was launched. On the platform’s main partner blockchains, trading pairs on the latter have risen significantly.

    from Initial form From 79,277 in February, it wasThe number of novel coronavirus cases has risen to more than 636,562 as of August 19, a massive 703% increase since it was first reported.

    The largest share of the pool was held by Base, CoinBase’s internal Ethereum layer, with over 512,545 pairs alone to deploy Uniswap v2. The trust built during this period between Uniswap and a major market player like CoinBase will help the ecosystem in the long run.

    However, criticism has arisen about how the data is translated and what it represents.

    Bonzo Finance Labs CEO Brady Gentile, Stated The data was strange and surprising to him, leading him to conclude that the data represented that many of the pools listed in the figure of 636,562 did not have sufficient liquidity, thus creating the need for multiple liquidity pools for the same pair.

    UNI stock is currently trading at $6.9. Chart: TradingView

    This sentiment was echoed in most of the comments on the post. This air of skepticism about the way the data is presented and the lack of any chance that Uniswap will address this issue could affect the overall perception of the platform.

    Breaking $6.8 level in the short term

    With minor drama surrounding how the data was represented on the platform, the broader sentiment flipped from bullish to bearish as bears dealt with the breakout at the $6.8 ceiling.

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    With exchange reserves of the token Access With the monthly gains, UNI bulls are feeling overwhelmed and under pressure from the market in the short term, which will inevitably lead to losses. UNI could fall to $5.8 in the short term before settling at $5.8-6.8 in the medium term before another attempt in the long term.

    However, this can only happen if the market itself is bullish, but with the recent ups and downs it has seen, caution should be exercised to prevent further losses.

    Featured image from FineProxy, chart from TradingView

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