CandleFocus

Uniswap TVL Drops Over 10% As Prices Replicate a Similar Drop

Author: Content Editor
Uniswap's total value locked (TVL) on the Polygon network has dropped by over 10% in the past month, reflecting a broader decline in DeFi activity on the platform. Other DeFi protocols on Polygon, such as Aave and Balancer, have also experienced a decrease in TVL during the same period. Despite the pullback, Uniswap remains a significant DeFi platform, with a total value of $844 million locked on Polygon. The drop in TVL has been accompanied by a decrease in the price of Uniswap's native token, UNI, which has fallen by over 9% in the past 30 days. The decline in Uniswap's TVL and token price is attributed to lower DeFi engagement, competition from other solutions, and macroeconomic uncertainty. However, there has been a recent rebound in UNI's price, and if the momentum can be sustained, the asset could face higher resistance levels. The increasing volume of green bars in the volume delta analysis suggests positive buying activity and confirms the recent breakout. Overall, it is speculated that UNI/USD has found a local bottom and the breakout could potentially reverse the trend.

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