Uniswap’s native token, UNI, started the month trading close to $7.50, remaining stable for some weeks before a sudden plunge took it below $6.50. Despite minor recoveries, it has struggled to regain its earlier levels, fluctuating between $6 and $6.8 amid a generally quiet DeFi landscape.

Notably, Binance whales are showing renewed interest in UNI. On-chain analytics from CryptoQuant show a marked increase in UNI outflows, particularly from the ten largest transactions typically associated with whale wallets.

UNI Movements on Binance

This trend of transferring UNI tokens from exchange wallets to private addresses could indicate accumulation or strategic reallocation by significant investors. Recently, Binance recorded a peak of 17,400 UNI in whale outflows in a single day, with a monthly high of 5,250 UNI, marking the highest activity level observed in three months.

Whales are known for their decisive actions, usually entering positions when they spot clear signals. The uptick in whale activities occurs while UNI attempts to recover from the market correction that started in July.

Whale movements may signal a shift in market sentiment. As these major players quietly position themselves, there’s speculation about possible renewed momentum within the Uniswap ecosystem.

Concerns Over Governance

Bitwise’s CIO, Matt Hougan, pointed out that despite Uniswap’s market cap hovering over $6 billion at one time, it is currently viewed as undervalued at approximately $4.13 billion. If Uniswap were a conventional company, it would rank around the 400th largest within global financial services.

Recent studies raise questions about the decentralization of Uniswap, noting that a large portion of the total value locked (TVL) is concentrated among a small number of key tokens and liquidity pools, indicating an uneven influence distribution.

Moreover, findings show that Uniswap’s governance token has created around 340 millionaires among its holders, highlighting a small but wealthy group of roughly 381,600 UNI holders who own wallets valued over one million dollars each.