Is the price of UNI, Uniswaps native token, doomed?
Since UNIs high of $44 in May 2021, UNI has seen gradual negative price action; most consider to be due to the current bearish cycle. However, could there be more to it?
Down over 70% on it’s All-Time High, UNI is suffering heavily in the bearish cycle that we have remained in since late 2021, reaching a low of $7.
One opinion on UNIs struggling price is the impact of decreasing volumes on the leading Decentralized Exchange.
Uniswap was the pioneer of the DEX market, which big DEXs like Sushi and pancake swap quickly followed suit, as Uniswaps code was available on Github. Recently, March’s Uniswaps transaction count was 83% lower than last may; the period surrounding it’s All-time high.
Unfortunately for UNI holders there does not seem to be a bright light at the end of the tunnel. As we spiral deeper into a bearish market, UNI has been predicted to hit as low as their initial market prices of $3 which would bring the tokens price back full circle.
Ultimately, Uniswap is still the biggest DEX by far and is not going anywhere soon. However as we have seen countless times already in the crypto sphere, having a good product does not guarantee that positive price action will follow.
If other DEXs continue to grow while Uniswap stagnates or decreases in volume, UNI may have already seen its highest highs. .