The decentralized finance (DeFi) space is gaining momentum as Bitcoin and the rest of the crypto market struggle. In fact, many DeFi applications are entering a sublimation phase due to such market adjustments and Uniswap is one of them.

Like most other DeFi projects, Uniswap peaked throughout the first half of 2021. In fact, despite the unusual June events, the volume of the decentralized exchange (DEX) continues to grow throughout the year.

DEX volume | Source: The block

Although the market leading DEX was seeing high volumes, activity on the network was still limited.

As UNI’s value in the market drops, users are now trading and using the token less. While it had previously shown signs of recovery, this was only a short-term trend. The UNI price bounced off the $ 14 mark with no upward momentum.

Falling prices along with the bitcoin market have alienated traders from the uniswap market. The proof is the decrease in the number of daily active addresses. Since the price hit $ 48 in May, interest has also waned across the board.

In addition, data from Santiment suggests that many users may have left the company and no new speculators have entered the market.

Daily active addresses are still decreasing since the priceaSlope | Source: Mood

With users no longer interested, prices are still under heavy downward pressure.

However, is this market weakness an unexpected shock?

Actually the answer is no. The Network Growth Index showed signs of weakening from mid-May and did not hit any new highs other than those seen in the first quarter of 2021. The above mentioned growth indicator has now stopped as the price of UNI continues to fall on the chart.

Source: Santiment

The lack of growth in the network is an indication of the lack of speculators in the market for the past 30 days. If the index continues to fall, the price can fall accordingly.

However, it’s worth noting that this is the first time the Uniswap team has hired a COO to expand the development of this DeFi project. Mary-Catherine Lader, who has worked at asset management firms such as BlackRock, will be tasked with expanding the reach of the network. New leadership can make a huge difference in how Uniswap operates, but it will take time to reflect on the results. As Santiment put it, “they were exhausted from the V3 and L2 story”.

Minh Anh

According to AMBCrypto

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