Uniswap reclaims top DEX spot after brief Jupiter decline

• Uniswap’s trading volume briefly rallied past Jupiter’s.
• The drop in UNI demand has led to a double-digit price decline in the last month.

Leading Ethereum-based decentralized exchange (DEX) Uniswap [UNI] briefly regained its top spot as the DEX with the highest trading volume on the 3rd of February after being replaced by Solana-based DEX Jupiter [JUP].

As reported earlier, on the 29th of January, Jupiter’s trading volume exceeded $500 million to capture an 18% market share of the total DEX trading volume recorded on that day. Uniswap fell behind it with a trading volume of $443 million.

This surge was due to the anticipation around Jupiter’s JUP token airdrop event, which was conducted on the 31st of January.

According to data from CoinGecko, in the early trading hours of the 3rd of February, Uniswap’s trading volume briefly rallied past Jupiter.

However, this has since been corrected, with Jupiter sitting atop the ranking of DEXes with the highest trading volume in the past 24 hours.

As of this writing, Jupiter’s trading volume totaled $538 million. Uniswap came in second place with a trading volume of $531 million recorded within the same window period.

UNI demand plunges

At press time, UNI exchanged hands at $6.18, witnessing a 16% price decline in the last month, per CoinMarketCap. 

An assessment of the token’s network activity on a 30-day moving average revealed a steady decline in demand for the altcoin in the past month. According to Santiment, the daily count of addresses involved in UNI transactions dropped by 23% in the last 30 days.

Likewise, new demand for UNI also plunged. Information from the same data provider showed that the token recorded a 27% dip in the daily count of new addresses created to trade UNI in the last month.

Source: Santiment

AMBCrypto’s assessment of trend indicators on a daily chart confirmed the bearish sentiments in the UNI market. For example, the token’s Moving Average Convergence Divergence (MACD) line crossed below the trend line on the 21st of January, ushering in a bear cycle. 

Realistic or not, here’s UNI’s market cap in BTC’s terms

Further, as of this writing, the MACD line was positioned under the zero line, showing that selling pressure significantly outpaced all accumulation efforts.

Its key momentum indicators were spotted below their respective center lines, confirming the decline in demand for UNI. The token’s Relative Strength Index (RSI) was 48.71, while its Money Flow Index (MFI) was 41.19.

Source: TradingView

With a  negative weighted sentiment of -0.81%, per data from Santiment, UNI’s value might experience a further dip if wider market sentiment fails to improve in the short term.