Arbitrum AirDrop not only brought benefits to the platform itself but also to other protocols such as Uniswap. Many ARB recipients used Uniswap to exchange their tokens, contributing to increased activity and market revitalization for UNI.
The cryptocurrency AirDrop Arbitrum[ARB] attracted the attention of the cryptocurrency community, especially the Uniswap[UNI] protocol, which benefited from the situation. A whopping 92% of all ARB holders chose to exchange their tokens via Uniswap, rather than using other decentralized exchanges (DEX).
Data analyzed by Santiment shows that the number of active addresses using UNI has increased in recent days, which may suggest that the token price should rise. However, investors expecting a UNI price increase should be cautious considering the decreasing number of hodlers. Short-term holders are more likely to sell their positions as prices rise, which may affect the token value’s decline in the short term.
It is also worth noting the recent increase in the UNI MVRV ratio, suggesting that many holders may soon begin to realize profits, and selling pressure on the token may increase.
Although UNI’s future may look promising, the Uniswap protocol still has much to do. Token Terminal data indicates that fees collected by Uniswap have dropped by 29% in recent months, despite an increase in the number of active users on the platform.
The fee decline may be related to a large amount of bot activity on the Uniswap protocol. Dune Analytics data suggests that MEV (Miner Extractable Value) bots accounted for 41.1% of the total trade value on the decentralized exchange. MEV bots can negatively impact DEX by so-called “front-running“, which means inserting their own transactions ahead of others to benefit from price changes.
This kind of activity can cause original transactions to fail or result in worse prices than the trader expected. As a result, it may discourage the use of DEX and affect Uniswap’s reputation.
In conclusion, Arbitrum AirDrop brought benefits not only for the protocol itself but also for Uniswap. The increase in user activity and interest in UNI tokens shows that the cryptocurrency market is still dynamic and evolving. Nevertheless, issues related to MEV bots and the changing structure of token holders require monitoring and may affect Uniswap’s further development.
