Recently, the prominent decentralized exchange Uniswap launched its token called UNI. The token has performed extraordinarily as it has shown a price rally of 600%.
However, it has plunged to $5.6 from $7 after decreasing by 15% in the past 24-hours. When it was surging exponentially in the past, some crypto analysts predicted a negative, and it’s happening now. But overall, it is still in a bullish position as the price is above $5. The market cap of UNI token touched the figure of $1 billion recently.
$1 Billion Market Cap of UNI Token
A DeFi focused crypto consultant Maple Leaf Capital said that UNI’s token reach to $1 billion market cap can start another rally for DeFi. Maple Leaf Capital said:
“10th reaction and it’s a real alpha leak. As UNI gets to 1-1.5 Bn circulating and hopefully market doesn’t shit the bed, all these defi coins will look cheap again and the ceiling is now opened up + funds take some profit go rotate back.”
In the Friday session, UNI jumped to $8.50 and then plunged to $6 in just five minutes. At the same time, Yearn.finance surged by eight percent. Similarly, other DeFi coins also showed a bullish pattern along with Bitcoin and Ethereum.
Relief Rally for DeFi
The former head of the product for Messari, Qiao Wang, has a different viewpoint for UNI. According to Wang, the UNI token will prove as a relief rally for DeFi sector.
“It all started with COMP. SUSHI was the blow-off top. UNI was the relief rally. Mini-winter is nice though as we can focus on building again. Next year will be a good year. Micro lots of new exciting products and macro risk-on everywhere,” Wang said.
According to many analysts, after a period of rapid growth, there will be a period of static state in the DeFi sector. People now fear the loss of funds due to low user experience. The capital entering the DeFi space has slowed down. Financial watchdogs have also started to probe cases of DeFi as stablecoin is a threat for governments as well.