Earlier today, Yearn.finance (YFI) and Ether (ETH) rose sharply after the token Uniswap UNI fell 22% from $ 8.00 to $ 6.80.
Launched less than 48 hours ago, UNI has gone from $ 1 to $ 8 in a short amount of time. After impressive 8x gains, the token is starting to decline, but the volume indicates that traders are looking for higher prices.
YFI and ETH are merging as UNI is fixed
When UNI started to hold equivalent meetings starting at $ 1, the cryptocurrency funding rate on major exchanges went negative.
Traders, who were mostly on the FTX exchanges, closed UNI in anticipation of a strong pullback. These merchants probably believed that most holders of the 400 UNI tokens sent to UniSwap users wanted to make money after it was valued at $ 2,640.
The exact opposite happened, within 5 hours of Binance’s launch, Coinbase Pro and FTX UNI were listed. This has become the fastest list among the three largest exchanges for the token launched recently, and it has led some cryptocurrencies to question whether exchanges are violating their listing policies in their pursuit of quick profits.
The rapid listing of these exchanges increased demand for UNI, and a negative FTX funding ratio further exacerbated the rally as card holders were expelled from their positions.
Finally, the token peaked at around $ 8.60 on Binance, followed by a 22% correction as the price consolidated in the $ 6.50 range and then returned to $ 7.00. When this happened, YFI price increased 10.72% from $ 31,158 to $ 34,509.
Ether is also up by just over 1% after the UNI price drop.
Hsaka, a famous crypto analyst on Twitter, pointed out what he calls comments between UNI and tokens like DeFi like YFI. This indicates that many DeFi users were trading UNI, he said, but once UNI reached its peak, profits returned to DeFi tokens with YFI as the main recipient.
View top dealerships on UNI Rally and Sharp Correction
While the sudden rise in UNI surprised many investors, some traders expected to collect the governance token.
An analyst under a pseudonym “DC Investor” said UNI’s strong performance as the most-used app on Ethereum was not surprising. He said:
“I can’t comment on the short term price much. But I’m just amazed at the amazement of people at UNI as a race. The most used app, the fees are higher than Bitcoin, the volume is higher than many CEXs, and one of the best Ethereum demos. Learn to see and buy real.”
Another popular crypto trader on Twitter, known as “Crypto Medici,” said that the UNI is likely to be underestimated and expects a valuation of between $ 3 billion and $ 5 billion in the long term. Dealer Note:
UNI will be valued at $ 3-5 billion (conservative). Still hugely underestimated. The token distribution was brilliant and many of those who sold will re-enter FOMO when we cross one billion dollars. That’s before V3 comes out and liquidity recovery accelerates. “