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DeFi Token UNI, MKR Lose Fluke: What’s Happening?
- Token volume fell by 71.30% after reaching a high level in March.
- Sentiment began to improve, but participants were hesitant to add liquidity to the protocols.
Two months after recording a dramatic increase in transaction volume, Uniswap [UNI] AND Creator [MKR] they lost part of that amount.
According to data from IntoTheBlock, last week’s volume was only just over $1 billion.
This represented a decrease of 71.30% compared to the increase that occurred in March. Volume can have a good impact on price action. For example, when the parameter rose in March, the price of these tokens increased.
The numbers are going down
At the time, there was speculation that UNI and MKR could lead the revival of DeFi tokens that were lagging behind.
DeFi stands for Decentralized Finance and these cryptocurrencies have fundamentals linked to the sector.
Source: IntoTheBlock
At the time of writing, UNI’s price was 7.50%, which is a drop of 33.62% in the last 24 hours. During the same period, MKR also fell by 23.17%.
These drops could be linked to declining interest in the tokens. It could also serve as proof that AMBCrypto inference that DeFi tokens would struggle to compete with meme coins may be valid.
In addition to price action and volume, Uniswap and Maker have been moved from their places in the ecosystem. Previously, both projects were in the top three when it comes to TVL.
TVL is the acronym for Total value blocked. The higher the TVL, the more reliable a protocol is perceived to be. But as of this writing, Maker was in fourth place, while Uniswap was in sixth place.
Source: DeFiLlama
Participants are still not convinced
Despite the price correlation, the feeling around both tokens differed. For example, data from Santiment showed that UNI’s weighted sentiment was 0.181.
Sentiment for MRK, at the time of writing, was -0.242. Positive metric values indicate an increase in positive comments about a project.
Negative readings, on the other hand, suggest that participants are not bullish on a token.
Therefore, it can be inferred that the market offered some goodwill to UNI while it was not the same for MKR. But one thing AMBCrypto noticed was that weighted sentiment for MKR was increasing.
Source: Santimento
Realistic or not, that’s it The market capitalization of MKR in terms of UNI
If the parameter were to move into the positive area, interest in the token could increase. In the near term, MKR and UNI transaction volume may not increase to the levels seen in March.
Furthermore, the token’s prices may move sideways for some time. However, if altcoins start rising at the same time, UNI’s price could revisit $10. For MKR, an uptrend could take the value to $3,300.