UNI Crashed 30% But Crypto Locked In Uniswap Reached $2 Billion

UNI crashed by 30% and the trading volumes are drying up as well, but the amount of locked crypto in Uniswap grows to $2 billion as we are reading more in today’s latest crypto news.

The Uniswap governance token UNI crashed by 30% overnight from the all-time high level of $7.37 to a price of $5.13. the trading volume of the coin also crashed from the daily average from yesterday of $6 billion to $2.2 billion today. However, as the token falls in price, the business on Uniswap is booming.

The coin that was launched on Wednesday, and it is considered the high-profile governance coin minted by a decentralized finance protocol. Uniswap is an automated market maker which means that it facilitates the token swaps. To swap ETH for example for UNI, one can draw upon the reserves of the pairing that are provided by other users. UNI soared in price after the launch from $1 on Thursday to a level of $7.37. Major exchanges such as Binance, Coinbase, and Bitfinex listed the token but the pump didn’t last. Four days into trading, there are no conclusions created about the fate of the coin.

The coin is a riposte to SushiSwap or a clone of Uniswap which also launched its own governance token SUSHI. Similarly to UNI, Sushi is earned from using the protocol and the platform also took business away from Uniswap so the latter minted its own governance token. The plan worked so far. The day after the launch, customers locked about $748 million worth of cryptocurrency in the smart contracts of uniswap according to Defi pulse. Now about $1.93 billion is locked in the smart contracts but the amount of crypto locked of SushiSwap declined to $516 million today from the recent $1.41 billion.

The coin was released retroactively to the historical users of the platform but even still, the governance token surged shortly after the launch, shaking of the strong selling pressure from those that dumped their fee allocations. From the lows put in an hour after the launch, the Ethereum-based UNI surged to 600 percent, reaching a price point of $7 as of the time of writing.