The surging UNI tokens experienced a drastic pullback in price as well as TVL.
Liquidity Pools(LPs) are speculated to have been behind the plunge by cashing out their rewards and dump UNI
The major reason behind the drop is said to be the uncertainty due to the end of UNI farms
More than $70 million removed from Uniswap Liquidity
The UNI price has witnessed a drop in the price in the past couple of days. The price which had almost doubled from $2.82 to $4.26 plunged back to the current level of $3.73 with a drop of 2.72 percent.
Also, the Total Value Locked(TVL) in Uniswap has declined dramatically by more than 40 percent. The maker has replaced Uniswap to dominate the DeFi space after the liquidity on Uniswap plunged nearly $1.171 billion in just 24 hours.
The major reason behind this plunge is said to be the yield farming which has ended on Uniswap exchange. However, the community is still making proposals. According to UNI Whales, whale analytics for Uniswap, nearly $73 million worth of ETH-DAI, ETH-USDT, and ETH-WBTC liquidity are removed from Uniswap.
However, the wallet still has over $500 million TVL, out of which the largest Liquidity Pool position is held by ETH-WBTC pool with over $256 million.
Will UNI Price surge to $4 or drop to $1?
While the Uniswap LP rewards have been stopped, the UNI token experienced a plunge in the recent past. However, it is believed to go to the moon towards its ATH after a slight pullback in the short-term.
In the contrast, other analysts believe the token will plunge more to the rock-bottom levels. However, the support levels are formed at $3.29 and further if it plunges deep, then it might visit the strong support levels at $1.75. Conversely, the resistance levels are formed at $4.37
Therefore, the UNI price may dip further a little but is expected to bounce back in the coming days.