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Bitcoin Price Analysis: UniSwap

19 Sep 2020

bitcoin price action analysis

While many of the altcoins saw their price decrease during the last 7 days, Bitcoin price rose by 6%. Currently trading at $10,944.9, the crypto-asset reached the $11,000 mark on September 16 for the first time since September 3.

 

Intotheblock's In-Out Money Around the Current Price(IOMAP) uses machine learning to identify the ten most relevant clusters of investor positions at a range of plus-minus 15 percent of the current price.  The IOMAP indicator reveals that Bitcoin faces stiff resistance ahead. For Bitcoin to reach $12,000 again, it has go through 2.7 million addresses that previously bought roughly 1.8 million BTC. 

Looking at the levels of support, over 1.25 million addresses had previously purchased a total of 768 thousand BTC between $10,601 and $10,929.91. This is expected to act as support as holders in this range will attempt to remain profitable on their positions and push prices above this level.


Uniswap launches Governance Token UNI and the Ethereum Network breaks a new record.



Announced Wednesday night, the new token will be allocated to Uniswap community members (60% of all tokens), team members/future employees (21.51%), investors (17.8%) and advisers (0.69%).

 

This announcement took social media by surprise, as a minimum of 400 UNI was airdropped to everyone who used Uniswap prior to September. Not only that, but the token was able to emerge in less than 48 hours as a top-30 ranked token by market cap, according to our trusted partner, CoinMarketCap.

 

Within a single day, the UNI token was listed in some of the major exchanges such as Coinbase, Binance, Huobi, Okex or FTX, reaching a 24-hour volume of $3.1 billion and boosting its total capitalization (888 million at the moment of writing), but it also had a tremendous effect on the Ethereum network, as many of the addresses that received the UNI airdropped rushed to claim their tokens.

 

On September 17, the number of on-chain transactions on the Ethereum network reached a new all-time high of 1.32 million and a volume of 13.41 million ETH or $5.08 billion.

 

See the Ethereum Transactions Stats




   



This Week Analysis: Behind the SushiSwap Saga

uniswap ether  trade chart



One of the largest stories in recent weeks in crypto has been SushiSwap’s short, yet eventful history. To recap, SushiSwap is a fork of most of Uniswap’s code and was announced on August 27. The key difference is that SushiSwap provides liquidity providers with an additional liquidity mining reward in the form of its governance token, SUSHI, while Uniswap provides 0.3% of trading fees (which SushiSwap does too). This scheme has been called by many vampire mining, as SushiSwap “sucked out” Uniswap’s liquidity.

 

Being crypto, users naturally rushed to supply liquidity to earn SUSHI in return. Before even launching the decentralized exchange (DEX), liquidity providers were “farming” SUSHI and centralized exchanges were listing the token. Uniswap’s liquidity increased sharply as users providing tokens to selected pools were receiving SUSHI even before the DEX launched. This led to Uniswap’s total liquidity shortly reaching $2 billion.

 

Uniswap’s liquidity dropped over 70% the day SushiSwap launched, before recovering a substantial amount. The already controversial story took a turn when its anonymous founder Chef Nomi sold 10% of SUSHI tokens (worth $14 million) which were intended for a development fund, in what many labeled an exit scam. The SUSHI token, which had already been declining, lost over 50% of its value on September 5 following Chef Nomi’s actions.

 

Sam Bankman-Fried, CEO of FTX Exchange and Alameda Research, was then selected by the community to lead SushiSwap, with Chef Nomi transferring the keys to the treasury to him. On September 11, Chef Nomi publicly apologized in a Twitter thread and returned the $14 million worth of ETH to SushiSwap’s treasury.

 

By analyzing on-chain activity, we can take a closer look at what was happening behind the scenes of the SushiSwap saga.