- Uniswap [UNI] and Maker [MKR] tokens have seen a significant drop in volume, down by 71.30% since their March peak.
- Despite an improving sentiment, participants are still hesitant to add liquidity to these protocols.
- Both tokens have also slipped in the Total Value Locked (TVL) rankings, with Maker at number four and Uniswap at sixth.
After a surge in transaction volume in March, Uniswap [UNI] and Maker [MKR] tokens have experienced a significant decline, raising questions about their future performance.
Volume Decline Impacts Price Action
According to data from IntoTheBlock, the volume last week for both tokens was just over $1 billion, a 71.30% decrease since their March high. This decline has had a noticeable impact on price action, with UNI’s price down 7.50%—a 33.62% decrease in the last 24 hours. MKR also plunged within the same period by 23.17%. This decrease in interest could be a sign that DeFi tokens are struggling to compete with meme coins.
Shift in Ecosystem Rankings
Uniswap and Maker have also seen a shift in their positions within the DeFi ecosystem. Previously, both projects were in the top three for Total Value Locked (TVL), a measure of a protocol’s perceived trustworthiness. However, at present, Maker is fourth, while Uniswap is sixth.
Market Sentiment Varies
Despite the correlation in price action, market sentiment for the two tokens differs. Santiment data shows UNI’s Weighted Sentiment at 0.181, indicating a rise in positive comments about the project. In contrast, MKR’s sentiment is -0.242, suggesting a lack of bullish sentiment from participants. However, the Weighted Sentiment for MKR is on the rise, which could lead to increased interest in the token.
Conclusion
In the short term, it’s unlikely that MKR and UNI’s transaction volume will return to the levels seen in March. The prices of the tokens may also move sideways for some time. However, if altcoins begin to rally, the price of UNI could revisit $10, and MKR could potentially reach $3,300.
