Binance Whales Are Quietly Buying Up Uniswap’s UNI Token Amidst Market Weakness

Uniswap’s native token, UNI, kicked off the month trading near $7.50 and held steady for the first couple of weeks before a sharp mid-month drop sent it below $6.50. Since then, the asset has been trying to regain its footing, mainly hovering between $6 and $6.8.

Despite a few small rebounds, it hasn’t yet recovered its early-October strength. This comes in the backdrop of weeks of subdued activity across the DeFi sector. But whales on Binance are showing renewed interest in UNI.

On-chain data shared by CryptoQuant indicates a significant uptick in UNI outflows from Binance, particularly among the top 10 largest transactions, which are typically linked to whale wallets.

UNI Moves on Binance

This pattern of UNI tokens being moved from exchange wallets to external addresses can be interpreted as a signal of accumulation or strategic repositioning by large investors. According to recent data, Binance recorded a daily peak of 17,400 UNI in whale outflows, while the monthly peak was 5,250 UNI.

This is the highest level seen in three months. Such movements are drawing attention, as whales are known for acting with strong conviction and typically enter positions only when they identify clear technical or fundamental signals. Their growing activity around UNI comes as the token continues to recover from the market correction that began in July.

UNI hasn’t quite bounced back yet, but the growing presence of whales hints that sentiment might be turning. The uptick in big transactions shows that major players could be quietly positioning themselves for a potential comeback, and means that fresh momentum might be building within the Uniswap ecosystem.

Governance Concerns

Bitwise CIO Matt Hougan had said that Uniswap is undervalued when its market cap was hovering at a little over $6 billion. The exec had argued that if it were a traditional company, it would rank around the 400th largest in global financial services. The market cap has suffered a significant decline since then and is currently at $4.13 billion.

For instance, a paper published on the research platform arXiv earlier this year raised concerns about how decentralized Uniswap really is. The study found signs of centralization in how its token network and liquidity pools are structured. In particular, much of the total value locked (TVL) is concentrated among a few key tokens and pools, which indicates an uneven distribution of influence within the network.

This aligns with more recent findings by Token Terminal, which found that Uniswap has created around 340 millionaires through its UNI governance token. Out of roughly 381,600 UNI holders, this small group holds wallets worth over $1 million each.

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