- Even with the complete unlocking of UNI, over 700 million tokens are still retained by major stakeholders, including a16z.
- Recent net outflows indicate a trend of UNI accumulation, but uncertainty in the market persists as large holders wait for favorable circumstances.
Uniswap [UNI] has achieved a critical milestone, having 100% of its supply completely unlocked.
Nonetheless, only 25.83% of the total supply of 1 billion UNI tokens (about 258.3 million) is currently available in the market, as per @EmberCN analysis.
This is mainly attributed to the significant amount of tokens held by the community treasury, team members, investors, and advisors, who have not released a substantial part of their holdings.
Current Circulation and Distribution
Early on, 17% of the total UNI supply was distributed through rewards for liquidity providers (LP) and airdrops to early adopters. These tokens have already been introduced into the market, forming part of the circulating supply.
Conversely, the remaining 83% were allocated to the community treasury and key stakeholders, including the core team, investors, and advisors.
Up to now, the community treasury has unlocked its entire allocation of 430 million UNI, but only roughly 30 million UNI has reached the market.
Similarly, the 400 million UNI designated for the team, investors, and advisors has been entirely unlocked, yet merely around 58.16 million UNI has been exchanged.
This cautious behavior from major stakeholders, such as investors like a16z, has played a vital role in maintaining a stable market price by avoiding a sudden increase in the circulating supply.
Long-term Confidence Among Holders
Even with the full unlocking of UNI tokens, there has been no major sell-off from significant stakeholders.
The choice to retain a large chunk of the supply—over 700 million UNI tokens—demonstrates a firm holding mentality amongst key investors.
This has assisted in preventing a drastic rise in circulating supply, potentially helping to stabilize the market.
This holding behavior could indicate solid confidence in the long-term prospects of Uniswap, as stakeholders such as a16z seem to be biding their time for advantageous market conditions before dispersing more of their tokens.
This restricted circulation may influence forthcoming market dynamics, particularly if significant stakeholders decide to offload more UNI tokens.
Accumulation Surge Indicated by UNI Outflows
In the last few weeks, the UNI market has experienced both inflows and outflows, according to IntoTheBlock data. On September 16th, net outflows reached 62,350 UNI, showing that more tokens were withdrawn from exchanges.
This could indicate that holders are getting ready to stake or keep their UNI for the long term instead of selling quickly.
Source: IntoTheBlock
In the past week, net inflows have risen by 19.38%, indicating a level of accumulation by major holders.
Nonetheless, over the past 30 and 90 days, a pattern of net outflows has emerged, suggesting a gradual decline in the activity of large holders.
Source: IntoTheBlock
Despite these fluctuations, UNI’s price has shown notable stability, reflecting a 2.55% rise over the last 24 hours and a 1.09% increase in the past week, indicating that the market is adapting well to these transitions.
Read Uniswap’s [UNI] Price Prediction 2024–2025
At the time of writing, UNI was priced at $6.63, featuring a trading volume of $138 million over the last 24 hours and a circulating supply of 750 million UNI tokens. This positions Uniswap’s market capitalization close to $5 billion.
While the latest netflows indicate potential accumulation, upcoming market fluctuations may present risks if significant stakeholders choose to divest more of their holdings.
