UNI is completely unlocked! However, only 25% are in use while large investors, such as a16z, await a breakout.
- Despite the complete unlocking of UNI tokens, more than 700 million tokens are still retained by significant stakeholders, including a16z.
- Current net outflows indicate a trend of UNI accumulation; however, market volatility persists as major holders anticipate more favorable conditions.
- The situation reflects a cautious approach among large investors, who are monitoring the market landscape before making further moves.
Uniswap [UNI] has achieved a noteworthy milestone, as the entirety of its supply is now completely unlocked.
Nevertheless, only 25.83% of the total 1 billion UNI tokens, which equates to approximately 258.3 million, are presently in circulation within the market, as indicated by an analysis from @EmberCN.
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This situation is primarily attributed to the fact that a substantial portion of the supply is retained by the community treasury, team members, investors, and advisors, who have not yet made a considerable amount of their holdings available for trading.
The dissemination and present circulation.
A total of 17% of the UNI supply was initially distributed via liquidity provider (LP) staking rewards and airdrops to early adopters. These tokens are now part of the circulating supply, having already been introduced into the market.
Conversely, the remaining 83% of the supply was designated for the community treasury and essential stakeholders, which encompass the team, investors, and advisors.
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As of now, the community treasury has fully released its allocation of 430 million UNI; however, only approximately 30 million UNI has been made available in the market.
Similarly, the 400 million UNI designated for the team, investors, and advisors has been completely released; however, only approximately 58.16 million UNI has been transacted.
This prudent strategy adopted by key stakeholders, such as investors like a16z, has played a significant role in maintaining a stable market price by averting a rapid increase in the number of tokens available in the market.
Holders exhibit sustained assurance
In light of the complete release of UNI tokens, there has been a notable absence of substantial sell-offs by primary stakeholders.
The choice to retain a significant share of the total supply—exceeding 700 million UNI tokens—demonstrates a robust holding strategy among prominent investors.
This approach has contributed to the mitigation of a rapid increase in circulating supply, which may serve to stabilize the market.
Such holding patterns could signify a long-term optimism regarding Uniswap’s prospects, as investors like a16z seem to be biding their time for more advantageous market conditions before distributing additional tokens.
Future market patterns may be impacted by this restricted circulation, particularly if major stakeholders decide to sell more UNI tokens.
UNI outflows indicate a spike in accumulation
- In the past few weeks, the UNI market has experienced a combination of inflows and outflows, as reported by IntoTheBlock data. On September 16th, there was a net outflow of 62,350 UNI, suggesting that a greater number of tokens were being removed from exchanges.
This trend may indicate that holders are positioning themselves to stake or retain their UNI for an extended period, rather than opting for short-term sales.
In the past week, net inflows have risen by 19.38%, indicating a potential accumulation by significant investors.
Conversely, an analysis of the last 30 and 90 days reveals a pattern of net outflows, which may suggest a decline in the engagement of large holders over an extended period.
Notwithstanding this, the price of UNI has exhibited a degree of stability, reflecting a 2.55% increase in the last 24 hours and a 1.09% rise over the preceding week, indicating that the market is effectively accommodating these fluctuations.
At the time of reporting, UNI was priced at $6.63, accompanied by a 24-hour trading volume of $138 million and a circulating supply of 750 million UNI tokens. This results in a market capitalization for Uniswap of approximately $5 billion.
Although recent net flows indicate possible accumulation trends, there is a risk of future market volatility should significant stakeholders opt to liquidate a portion of their assets.
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