Almost $50 Million UNI Goes Into Governance But Price Tanks to $3

Uniswap’s native token, UNI, is flowing into the protocol’s governance mechanism but its prices are still tanking despite an increase in collateral.
According to recent metrics from Dune Analytics, around $47.5 million in UNI tokens have been delegated to protocol governance. The dashboard also revealed that there are over 2,000 delegates and over 87,000 UNI holders.
Almost 50M $UNI delegated to governance ???? ????⚖️
Follow @UniswapProtocol governance via this great dashboard by @Lsquaredleland ????https://t.co/jrBuv2VfJS pic.twitter.com/PiV77RUIDk
— Dune Analytics (@DuneAnalytics) October 5, 2020
As with most DeFi governance systems, a few large addresses hold most of the voting power which effectively gives the whales control over the direction of the protocol.
Late last month, a Glassnode report delved into the Uniswap token distribution roadmap and governance plans concluding that the protocol falls far short of true decentralization. At the time, it stated that only 15 addresses control at least 10 million UNI.
Four of these are reserved for the governance treasury, and one is the airdrop distributor address. Of the remaining ten addresses, nine of them contain part of the team and investor token allocation, and the last one is controlled by Binance.
Uniswap TVL at All-Time High
Centralization concerns aside, Uniswap metrics are continually improving in terms of liquidity provision. The protocol is at the top of the list in terms of total value locked according to Defipulse.com.
TVL is at an all-time high on Uniswap at just under $2.4 billion, or 22% of the total collateral across all DeFi platforms. Over the past two months, it has surged almost 1700%, driven largely by SushiSwap and the launch of its own liquidity mining pools in mid-September.
At the time of writing the amount of crypto collateral locked across those four pools was $1.78 billion, or 75% of the total locked on the platform. The most popular pool is the ETH/USDC one with almost half a million dollars worth locked up.
The pools are currently earning 583,333 UNI per week each and will continue to do so for the next six weeks.
UNI Prices Sliding
The positive collateral figures have not helped UNI token prices, however, as it continues to slide. At the time of writing, UNI was changing hands for $3.12, down 11% on the day according to Uniswap.info.
Since the beginning of October, UNI has dumped 30% and since its peak, shortly after launch, it has lost 60%.
Like most recently launched DeFi tokens, UNI is going off the boil and being sold off as ‘degen’ farmers flock to the new latest craze.
- Michael Saylor Says “No New Orange Dots” Pausing Bitcoin Buys as Holdings Hit Record $79B
- Experts Turn Bullish on Pudgy Penguins as PENGU Leads Meme Coin Buys on Solana
- ASTER to Launch Phase 2 Airdrop on October 10 as Open Interest Tops $5B in Two Weeks
- El Salvador’s Bitcoin Holdings Hit $475M Profit as BTC Becomes World’s 7th Largest Asset
- Breaking: Bitcoin Hits New ATH Above $125k as ‘Uptober’ Kicks Off in Full Force
- Dogecoin Price Rebounds 15% From Buy Zone as Whales Add 30M DOGE – Can Bulls Push Beyond $0.30?
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
- Bitcoin Price Hits $120K Ahead of Q4 — Can Citigroup’s Forecast Hold Up?