Key Notes

Key Notes:

Uniswap’s Unichain deployed 13.8k new Layer 2 contracts, boosting network growth.Uniswap gained market share, while Raydium’s dominance dropped significantly.Whale interest in UNI has declined, with holdings falling from $13.59 billion to $9.34 billion.UNI’s price near $9 shows potential for a bullish comeback.

In January 2025, the DEX to CEX trading volume ratio reached a peak of 20.02%. This reflects a shift of traders towards decentralized exchanges like Uniswap and PancakeSwap amid the increasing possibility of a new bull market.

With the shift towards decentralized exchanges, Uniswap, witnesses network growth. Will this short-term recovery propel UNI token price UNI $9.06 24h volatility: 4.6% Market cap: $5.44 B Vol. 24h: $213.33 M on a new parabolic rise?

In an X post by Token Terminal, Unichain has deployed 13.8K new contracts on Layer 2. This marks a significant recovery and positive trend over the last few days.

Daily contracts deployed on the @unichain 🦄⛓️

Yesterday saw ~13.8k new contract deployments on the L2 pic.twitter.com/I6Td50oLbV

— Token Terminal | 🔜 ETHDenver (@tokenterminal) February 20, 2025

Along with the increasing contract deployment, Uniswap’s share in the decentralized exchange trading volume is resurging.

Uniswap’s share in the DEX volume stood at 21.96% in January 2025, which has increased to 23.65% this month. The recovery comes as Raydium protocol, a Solana-based DEX, witnesses a decline in dominance. It dropped from 27.11% to 16.14%.

Currently, PancakeSwap dominates a big chunk of DEX volume share. The PancakeSwap share has increased from 17.23% to 29.17% over the past month.

On an additional note, the monthly data is yet to complete. Thus, a significant surge of inflow in the market could reshape the current landscape.

In the last month, out of the total $457.49 billion worth of DEX volume, Uniswap accounted for $100.47 billion. Raydium Protocol was the biggest shareholder with $124.03 billion worth of DEX volume in January 2025, and Pancake at third with $78.82 billion.

With the rising share in the Decentralized Exchange Volume, Uniswap is witnessing a surge in the number of large transactions. As per IntoTheBlock, the number of large transactions on Uniswap in the past week has increased from 96 to 169.

This marks a significant recovery for Uniswap, reflecting its growing adoption among crypto whales.

Despite the positive growth over its network, the balance by holding of UNI in terms of USD has witnessed a significant downfall. As per IntoTheBlock. Since the start of 2025, the total holding has dropped from $13.59 billion to $9.34 billion.

In the downfall, the holdings with more than $100,000 worth of UNI have dropped from $13.28 billion to $9.11 billion. This clearly signifies the declining interest of whales in Uniswap.

However, the stability in the Uniswap market price near the $9.00 mark and resurgence in DEX volumes could result in a bullish reversal.

Over the past week, the UNI token price has taken support near the $9 mark. Currently, it shows a second bounce back, hinting at a potential double bottom pattern.

Uniswap price chart

Supporting the chances of a bullish recovery, the daily RSI line reveals a bullish divergence. However, the prevailing downfall since December 2024 has accounted for more than a 50% drop.

With the bearish influence, the 50 and 100 EMA lines have given a bearish crossover and warn of a death cross between the 50 and 200 EMA line. In case of a bullish reversal, the uptrend will likely face the position near the 23.60% Fibonacci level near $12.

On the flip side, a breakdown under $9 will likely test the support level near $7.30, followed by the next line of defense at $6.20.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.

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