Uniswap’s native token, UNI, began the month trading around $7.50 and remained strong for the first few weeks before plummeting mid-month to below $6.50. Since then, the asset has been trying to regain its footing, hovering primarily between $6 and $6.8.
Although there have been several small rebounds, the market has not yet regained the strength it had in early October. This comes against the backdrop of weeks of subdued activity across the DeFi sector. However, Binance whales are showing renewed interest in UNI.
On-chain data shared by CryptoQuant shows a significant increase in UNI outflows from Binance, especially among the top 10 largest transactions related to whale wallets.
UNI moves to Binance
This pattern of UNI tokens being moved from exchange wallets to external addresses can be interpreted as a signal of accumulation or strategic repositioning by large investors. According to recent data, Binance recorded a daily peak of 17,400 UNI in whale outflows, with a monthly peak of 5,250 UNI.
This was the highest level in three months. Such moves are notable because whales are known to act with strong convictions and typically only enter positions when they identify clear technical or fundamental signals. Their increased activity around UNI comes as the token continues to recover from the market correction that began in July.
Although UNI has not yet fully recovered, the increasing presence of whales suggests that sentiment may be changing. The increase in large-scale deals indicates that major players may be quietly poised for a potential comeback and means new momentum may be building within the Uniswap ecosystem.
Governance concerns
Bitwise CIO Matt Hogan said Uniswap was undervalued, with its market cap hovering at just over $6 billion. The executive claimed that if the company were a traditional company, it would rank around 400 in the global financial services industry. Since then, its market capitalization has decreased significantly and currently stands at $4.13 billion.
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For example, a paper published on research platform arXiv earlier this year raised concerns about how decentralized Uniswap actually is. The study found signs of centralization in the structure of token networks and liquidity pools. In particular, much of the total value locked (TVL) is concentrated in a small number of key tokens and pools, indicating an uneven distribution of influence within the network.
This is in line with Token Terminal’s recent findings that Uniswap has created approximately 340 millionaires through its UNI governance token. Of the approximately 381,600 UNI holders, this small group each holds wallets worth more than $1 million.
