The decentralized cryptocurrency trading platform, Uniswap (UNI), is gaining attention today for its outstanding success, having had its greatest week in more than two years.
As of this writing, the value of UNI has increased by over 40%, hitting a high of $12.79, demonstrating one of the best trading weeks since January 2022. However, UNI’s price fell to around $10.78 with a noticeable dip in trading volumes.
Source: CoinMarketCap
The price increase is in response to Uniswap's suggestion that holders of UNIs participate in revenue sharing. The plan, which is slated for an on-chain vote on March 8 after a snapshot vote on March 1, has generated a lot of attention from investors and helped drive UNI's recent price surge.
Before the spike, there were allegations that a UNI liquidity provider had taken out 1.2 million tokens, worth $8.7 million, from liquidity pools and put 1 million UNI tokens, worth $7.25 million, into Binance.
A little while after, the price of UNI increased by more than 60% as 220,574 UNI tokens, worth $2.69 million, were placed into Binance by three wallets that were probably owned by the same person.
The wallets in question have been seen to take UNI out of Binance during periods of low volatility and deposit it into centralized exchanges during periods of high volatility. This has led to an estimated realized profit of $1.49 million, which represents a noteworthy 91% gain.
Uniswap continues to earn significant fees and holds the title of the largest decentralized exchange despite recent volatility. Uniswap has racked up fees of $71.6 million in the last thirty days—more than Lido Finance.
Investors, ready to seize any chance provided by Uniswap's developing ecosystem, are watching the results of the impending votes with great anticipation as UNI's proposal for a revenue-sharing mechanism moves further.