Uniswap Price Surges as Whales Pump Capital into Protocol

Uniswap has seen its price surge more than 10% in recent days, driven by institutional and whale positioning, as well as an increase in burn rate. According to data from Arkham, three wallets belonging to whales were aggressively buying Uniswap tokens from Upbit, hinting that Asian participants are pumping capital into the protocol.

The wallets moved over 146K UNI tokens worth $647K from Upbit's hot wallet to a cold wallet, while another 47.563K UNI tokens costing over $209K were transferred from Binance's hot wallet to Wintermute's market-making address. This suggests that whales have faith in the Uniswap project and are investing heavily.

On the other hand, these wallets sold 9.6 million POL tokens worth over $1 million, indicating they believe more in the UNI project than in Polygon. The burn rate of Uniswap has also been on the rise, with the altcoin recording its biggest daily burn in USD totaling about $590K on August 21st.

The increased burn rate has reduced the circulating supply of the token, contributing to the uptrend. However, despite breaking above the $4-$4.60 zone, Uniswap is still facing resistance and testing the 9-EMA in the 4-hour chart. The Up/Down Volume was dominated by bears at the time of press, with a disparity of $2.17 million against $1.26 million from bulls.