-76.3% of designated UNI has already been claimed
-More than 56% of all claimed UNI has already been moved to exchanges
-How UNI’s whale redistribution preceded its price correction
-UNI’s on-chain activity remains high, but declining fast
-UNI exchange metrics suggest diminishing sell-side pressure
-UNI-related network congestion issues now largely gone
Last week’s launch of Uniswap’s governance token UNI remains one of the hottest talking points in crypto – and for good reason.
The largest decentralized exchange protocol rewarded its existing users and liquidity providers with thousands of $ worth of UNI, generating insane hype and propelling the freshly-minted cryptocurrency to spot #37 by market cap at the time of writing.
And yet, despite capturing market-wide interest, most UNI discussions on social media remain dangerously esoteric, fueled by a healthy blend of baseless rumors, half-truths and FOMO-led assumptions. It’s like 2017 all over again, except no one goes to coffee shops anymore.
So in our bid to be the change we want to see in the world, last week we published a set of UNI dashboards, providing real-time data on UNI token distribution, total amount of UNI claimed, amount of UNI on centralized and decentralized exchange, top UNI transactions and more. Based on this set of metrics, here’s a very early overview of UNI’s ‘historical’ on-chain activity, token holder behavior and other fundamental indicators delineating one of the hottest virtual commodities of the year:
The UNI token was officially launched on September 17th to raving reviews both off and on-chain. Given the incentives, the coin’s network activity unsurprisingly peaked almost immediately, with over 178,000 addresses interacting with (sending or receiving) UNI in the first 24 hours. In comparison, Chainlink (LINK), one of the most popular ERC-20 coins, recorded just 5974 daily active addresses in the same time span.
As users claimed their free tokens, the amount of unique addresses interacting with UNI has continued to decline, with ‘only’ 22753 addresses recorded in the past 24 hours. While the downtrend in UNI network activity has been swift, this still makes it the second most utilized ERC-20 coin today, trailing only behind Tether.
Speaking of claims, our new Uniswap dashboard gives a detailed breakdown of all UNI that has been claimed to date as well as the coins’ post-claim activity, a metric that will likely prove crucial in determining UNI’s short to mid-term potential.
At the time of writing, a total of 114,450,677 UNI has been claimed, amounting to 76.3% of the total distribution pool. Of the 114 million, 58.1m UNI has been claimed by historical users of the Uniswap platform, while another 56.2m UNI was appropriated by its historical liquidity providers:
What’s even more important, however, is what happened to all this UNI once it was claimed. For this, we created a post-claim activity dashboard, which tracks the distributed UNI across network addresses.
Out of the 114.5m claimed Uniswap tokens, 26.2m UNI has remained completely dormant since, suggesting that around 23% of all claimed UNI is intended for HODLing – at least for now.
This means that 88.1m claimed UNI tokens have already moved to at least one more address, with further breakdown revealing the most popular end destinations:
64m UNI (56% of all claimed UNI so far) has already found its way to known centralized exchanges – mainly Binance and Huobi – suggesting mounting sell-side pressure and virtually immediate profit-taking initiative by the majority of UNI claimers. Also – keep in mind that we don’t currently track Coinbase Pro wallets for Uniswap, so the final tally of UNI located on exchanges is likely to be higher by at least a few million.
In other words, the majority of existing UNI claimers have shown little to no interest in waiting for a sustained price rally, and have been quickly offloading their ‘free money’ to centralized exchanges. And with over 57% of UNI claimed in the first 24 hours, it’s no surprise that we saw a swift price correction after UNI climbed all the way up to $8.3 on September 18th. Uniswap’s governance token has lost -49.3% since, and is trading at $4.26 at the time of writing.
Another telling precursor to UNI’s price correction was the on-chain activity of its large holders, which pivoted to distribution in the hours before the coin’s all-time high.
The combined balance of all addresses holding between 1k-10k UNI ($4260-$42600) has shrunk by 1,650,000 UNI as the coin first broke above $5. Similarly, the combined balance of all addresses holding between 10k-100k UNI ($42600-$426000) has also diminished by an additional 1,900,000 UNI at virtually the same time:
In total, the amount of addresses holding more than 1000 UNI has declined by 681 briefly before the coin reached its all-time price high, suggesting a network-wide shift from accumulation to profit-taking:
More clues that we were headed for a price correction can be found in UNI’s exchange-based metrics, which – similar to its daily addresses – positively exploded within the first 24 hours of the coin’s launch.
The amount of active UNI deposits (addresses used to move UNI to centralized exchanges) has surged to a massive 14305 during the first day, signaling massive sell-side pressure and little desire by most UNI claimers to hold on to their bags:
To demonstrate the sheer scale of UNI-related sell offs indicated here, the amount of active LINK deposits on the same day peaked at 375. Not 375 thousands – just 375.
That said, the amount of UNI deposits has continued to swiftly decline since its initial surge, with just 867 active deposits recorded in the past 24 hours. The diminishing exchange-bound activity could bode well for the price of UNI, but strong caution is advised – the majority of claimed UNI remains on exchanges, and it’s wholly possible that there’s still some sell-side pressure left to work through.
That UNI sell-offs have started tapering off can also be seen on the coin’s exchange-bound inflow, which has evidently peaked within the first 48 hours. More recently, the only notable spike in the flow of UNI to exchanges is the one recorded earlier today almost exactly as UNI broke below the $5 support level, signalling another wave of capitulation and ‘weak hand’ sell-offs to start the week:
With more than ¾ of the intended UNI claimed and much of it already dumped on exchanges, the coin’s role in rising Ethereum fees has also been significantly reduced. The first 24 hours of UNI’s launch decidedly clogged the entire network, causing the highest-ever amount of trx fees – 42760 ETH – to be paid in a single day:
The average daily fees have largely settled down since, shrinking from $11.6 on September 17th to a more palatable $2.29 within the past 24 hours. Still, UNI remains the 4th largest coin by the amount of ETH spent on transaction fees in the past 7 days:
For more information on Uniswap’s governance token, check out our brand new UNI dashboards, providing real-time data on UNI token distribution, total amount of UNI claimed, amount of UNI on centralized and decentralized exchange, top UNI transactions and more!
This report was produced using Santiment’s growing suite of market and network analytics tools – Sanbase and Sandata – which help users analyze the crypto market and find data-driven investment opportunities.
Santiment provides clean and reliable on-chain, social media and development information on over 1000 crypto assets, and develops unique metrics, signals, strategies and reports on top of our custom datasets.
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