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Uniswap’s Yield Farming is about to end, Will UNI Price Plunge?

Highlights

    Uniswap platforms yield farming opportunity is going to end on 17 November 2020

    ETH and stablecoins in wrapped bitcoins worth $1.1 billion is about to enter DeFi space

    A breakdown with the UNI price can be expected in the coming days

DeFi space is about to be flooded with liquidity

Uniswap during the launch of its governance token also rolled out a yield farming opportunity. The users could earn UNI tokens by depositing liquidity into decentralized exchanges.

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 It became very popular and soon the yield farming accumulated $2 billion in cryptocurrency in Uniswap liquidity pool

Now, when the opportunity is about to end, the liquidity is expected to flow back into the markets flooding billions.  Therefore, the analyst is also uncertain whether the liquidity would flow into the stablecoins or other altcoins.

Also Read: Uniswap Exchange Review – A Detailed Guide to Token Swap

Will UNI and ETH price be impacted?

With the launch of the Uniswap yield farming, the ETH price rallied nearly 6 percent to touch close to $390. Also, the UNI price surged to its current all-time high above $8. As a huge amount of ETH is expected to enter the space, the traders are expected to influx them into other altcoins.

This may add up to the altcoin season. But what about UNI?

UNI price is expected to be impacted to some extent, as the UNI selling pressure may mount up as the traders may let off their holdings in search of another yield farm. However, the Uniswap platform is expected to remain less affected as half of the TVL is still intact.

Also Read: Uniswap (UNI) Price Prediction: How High Will UNI Token Go?

Uniswap TVL crossed $3 billion

Uniswap, the most dominant decentralized platform recently reached a milestone of attaining $3 billion Total Value Locked(TVL) in USD. The total TVL is $13.74 Billion, where-in Uniswap dominates by 21.94% attaining $3.01 billion TVL.

As the yield farming is about to end, a large portion nearly 50% of the total Uniswap TVL is expected to stay within the pools.

Collectively, the Uniswap Yield Farming which is about to end may reverse the liquidity flow back into the market, but the Uniswap TVL would remain less affected. However, the UNI price may also face some rejections forcing it to enter the correction phase.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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