Uniswap whale sell-off causes UNI to plummet
NAIROBI (Coinchapter.com) - The Uniswap whale sell-off has led to a massive drop in the price of UNI. On Thursday, June 6, the price of UNI dropped by 6% from $11.26 to $10.63. The drop was caused by a whale selling $7.08 million worth of UNI tokens. Crypto analytics firm Lookonchain believes that this large-scale transaction led to the price drop. The sell-off was unexpected, raising concerns among investors about the possibility of further declines. The event highlights the volatility of the crypto market and the huge impact that large holders can have on token prices.

UNI/USD 1-day price chart. Source: Coingecko
Uniswap whale activity and market impact
The whale’s actions significantly affected the Uniswap market. Lookonchain reported that the whale sold 606,088 UNI tokens. The sell-off led to a significant drop in the value of the token. The whale had previously withdrawn 1.3 million UNI tokens worth $13.7 million from Binance. The investor now holds 696,808 UNI tokens spread across three wallets with a total value of $7.46 million. The analysis company estimates that the whale made a profit of about $800,000 from the transaction.

Source: Lookonchain
The whale's sell-off coincided with a market rally led by Bitcoin, highlighting the volatility of the crypto market. Despite the whale's massive sell-off, UNI has retained more than 38% of its gains over the past 30 days. However, the impact of market sentiment on such large transactions cannot be ignored.

Tokens to be unlocked and future impact
Another factor contributing to the bearish outlook for UNI is the upcoming token unlock. More than $90 million worth of UNI tokens will soon be available to advisors, the team, and investors. This unlock is scheduled for June 16 and could increase selling pressure on the token. Historically, large-scale token unlocks have led to increased selling pressure, negatively impacting token prices.

As these tokens become available, the market may see increased volatility. Other large token unlocks in June include ARB's $106 million on June 16, APT's $105 million on June 12, and STRK's $78 million on June 15. Despite the recent decline, UNI has retained its gains of more than 38% over the past 30 days. However, the upcoming unlocking of tokens may affect the stability of its future price. Investors should pay close attention to these developments.

Historically, large-scale token unlocks have led to increased selling pressure, negatively impacting token prices. As these tokens become available, the market may experience increased volatility. Investors should closely monitor these developments.

In summary, recent whale activity on Uniswap has significantly impacted the price of UNI. The upcoming token unlocking further adds to the uncertainty. As the market reacts to these events, traders and investors should stay informed of potential developments. The behavior of large investors and the timing of token releases are key factors in crypto market dynamics.