UNI, the native token of Ethereum-based decentralized exchange Uniswap, has registered a strong price rally in the last seven weeks. The UNI price has gained by more than 150% in the last seven weeks putting it once again among the ranks of the top fifteen cryptocurrencies by market cap.
On-chain data provider Santiment shows that the recent UNI price rally has been due to strong whale accumulation and rising address activity.
As per Santiment, the daily active addresses for Santiment have surged to more than 1,100. This shows that the price action could be more sustainable as it’s followed up by strong address activity.
Uniswap Whale Accumulation
Since May 2022 crash, Uniswap whale addresses have been accumulating a large number of UNI tokens in heavier percentages. The whale addresses with 100k to 1m UNI has seen a large accumulation spike in the last two weeks. Santiment reported:
Speaking of whales, the amount of large transactions (which we deem to be transactions valued at $100k or more) are rising back to May levels as well. We can clearly see the major clump of big whale transactions that began forming one week ago, just prior to the major price rise up to $9.69.
Furthermore, the active average trader returns for Uniswap have also shot up. The 30-day MVRV is currently up by more than 22.5%. Santiment notes that this is well above the ‘Danger Zone’ of +15% or more.
However, Santiment asks new investors to remain cautious after the sharp price surge recently. It notes:
Mid-term trading returns beginning to overflow, the good news is that long-term traders (in the 365-day MVRV) are still well under water. This means that there may be an upcoming downturn in the next week or two for UNI, but its future for the long-term still looks to be undervalued.
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