What Uniswap’s network growth can teach us about the current market

ambcrypto.com:

Now that the crypto market has delivered an overall bullish performance so far this year, it is important to assess the demand sources. Spot and derivatives demand has been quite active but more importantly, the DeFi segment has also performed quite well.

Uniswap, one of the largest DeFi platforms across the world, experienced healthy activity amid the market recovery. However, some observations may indicate that a sizable change is about to take place.

For example, Uniswap’s network growth just dropped out of its average 4-week range and is now at its lowest level seen in the same period.

The above observation might offer some insights into the current market conditions, and hence the demand for Uniswap.

Most top cryptocurrencies traded on the DeFi platform experienced a surge in demand in the last few days. However, the demand is now slowing down, as the market anticipates the next move.

The outcome reflects the drop in transaction volume observed in the last 24 hours. This is more clearly reflected in the daily active addresses which also dropped significantly during the same period.

Source: Santiment

The aforementioned drop in network activity is reflected in address activity on the network. Both the sending and receiving addresses declined since 16 February, confirming the lower trading activity.

Despite this, the number of receiving addresses remained slightly higher than sending addresses.

Source: Glassnode

Oscillations in the address flows are quite common and do not necessarily suggest a pivot. However, they may be aligned with such a market outcome, especially at resistance zones.

UNI has been stuck in a zigzag price pattern since mid-January and has delivered an overall bullish performance in the last seven days. This