The DeFi hype, which was expected to come in the second half of July, did not materialize. However, UNI Coin stood out. The altcoin, which saw double-digit growth last week after the launch, caught the attention of investors. So, can buying UNI Coin be a profitable move for investors?
The price of Uniswap (UNI) increased by 14% last week due to the positive response of the markets to the recent UniswapX protocol launch. In a blog post dated July 17, Uniswap CEO Hayden Adams announced the highly anticipated launch of the UniswapX Protocol. According to the company’s statement, the protocol based on the Dutch auction system will enhance trading between different liquidity sources on the network and develop a self-custody system for swap transactions.
The launch of the UniswapX protocol seems to have triggered a positive response among the participants of the Uniswap network. The number of Daily Active Addresses (DAA) has significantly increased for three consecutive days this week. According to data provided by Santiment, Uniswap’s active addresses increased by 22% from July 15 to July 18.
If the beta test of the UniswapX protocol is successful, Uniswap’s DAA may rise even further. Therefore, bulls may continue to wait for further price increases instead of selling. The first on-chain signals indicate that long-term investors expect UNI to add to the 15% gain it achieved in July, rather than selling. The Average Coin Age compiled by Santiment increased by 12% from July 15 to July 19, rising from 20.05 to 22.41.
A persistent increase in Average Coin Age is considered a bullish signal indicating that investors are holding their tokens for a longer period on average. In summary, increased network activity and accumulation trend across the network suggest that UNI may be ready to achieve further gains.
Considering the highlighted bullish indicators, investors with a bullish trend can expect a new move to reclaim $7. However, IntoTheBlock’s GIOM data clearly shows that the $6 resistance continues to be a daunting challenge for bulls.