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Binance Whales Are Quietly Buying Up Uniswap’s UNI Token Amidst Market Weakness
TL;DR
Uniswap’s native token, UNI, began October trading near $7.50 but slipped sharply mid-month, dropping below $6.50 before stabilizing in the $6–$6.80 range. While the broader DeFi market remains sluggish, on-chain data indicates that large investors—commonly known as whales—are accumulating UNI through significant withdrawals from Binance.
Whales Signal Renewed Confidence in UNI
According to data from CryptoQuant, whale outflows of UNI from Binance have surged, reaching a daily peak of 17,400 UNI and a monthly peak of 5,250 UNI, the highest in three months. These movements are typically interpreted as signs of accumulation, as tokens leaving exchanges reduce sell-side pressure and suggest long-term holding intentions.
Market analysts note that whales often move strategically, positioning ahead of potential recovery phases. The latest activity implies that large holders may view UNI’s current levels as an attractive entry point following the DeFi market’s correction since July.
Although UNI hasn’t regained its early-October strength, the renewed whale presence hints at growing bullish sentiment and a possible shift toward accumulation within the Uniswap ecosystem.
Valuation and Governance Under Scrutiny
Earlier this year, Bitwise CIO Matt Hougan said Uniswap was undervalued when its market capitalization stood above $6 billion, comparing it to the 400th largest company in global financial services. Today, that figure has fallen to around $4.13 billion, suggesting the token may be trading below its perceived intrinsic value.
However, governance concerns remain a topic of discussion. A study published on arXiv found signs of centralization within Uniswap’s network, noting that much of its total value locked (TVL) is concentrated in a small number of tokens and liquidity pools. Complementary data from Token Terminal revealed that about 340 wallets hold over $1 million in UNI, underscoring the network’s uneven distribution of wealth and influence.
Despite these concerns, whale accumulation trends suggest that institutional and high-net-worth investors continue to see long-term potential in Uniswap’s role within decentralized finance.
