MakerDAO and Uniswap lead on the DeFi front; will UNI and MKR comply?

Uniswap [UNI] and MakerDAO [MKR] have distinguished themselves from other DeFi tokens by having fewer holders holding at a loss. In a period when most DeFi tokens and other cryptocurrencies are seeing most of their holders incurring losses, this achievement sets these tokens apart.

Less Maker and Uniswap holders at a loss

The crypto market experienced an extended period of decline, leading to a decrease in the value of various assets, including DeFi tokens. This downturn also contributed to a rise in the number of holders experiencing losses, as reported by Into The Block.

However, amidst these circumstances, MakerDAO and Uniswap have emerged as standout performers among DeFi tokens. 

While many altcoins are experiencing unprecedented losses, with over 90% of holders incurring losses, principal DeFi tokens are showing some resilience.

An examination of the profit and loss profiles of holders over the past year reveals that most are in a similar position… pic.twitter.com/miXAX5YdLX

— IntoTheBlock (@intotheblock) August 24, 2023

According to Into The Block’s report, MakerDAO [MKR] displayed a figure of approximately 52.3% of its holders in a loss position. Similarly, Uniswap [UNI] secured the second position, with roughly 72% of its holders facing losses.

To provide context, Compound [COMP] and Ox exhibited higher numbers, with around 93% and 86% of their respective holders incurring losses. On the other hand, Aave recorded 76.3% of its holders dealing with losses.

MKR and UNI flash bearish signal

Examining MakerDAO on a daily timeframe revealed that it was not exempt from the broader market’s downward price movement. However, the impact appeared relatively moderate; the chart illustrated a trend with a steadier ascent rather than a decline.

As of this writing, it was exchanging hands within the range of approximately $990 to $1,000. Nevertheless, the trend exhibited a distinct bearish nature, as evidenced by its Relative Strength Index (RSI).

In contrast, Uniswap exhibited greater price volatility, evident from its daily chart. Its press time trading value hovered around $4.5, declining over 1%. The RSI also pointed toward a bearish trajectory for Uniswap, with its signal being more pronounced since it had slipped below the 30 mark.

Maker and Uniswap’s TVL declines

A broader perspective on the Total Value Locked (TVL) for MakerDAO and Uniswap revealed a noticeable decline. At the time of this assessment, Maker’s TVL hovered around $5 billion, according to data from DefiLlama. Comparatively, just before 12 August, the TVL exceeded $5.9 billion. However, a steep reduction became evident, leading to the present TVL level.

Similarly, Uniswap encountered a significant drop in its TVL on 22 August, causing it to plummet to approximately $1 billion, per DefiLlama. Nonetheless, at the present moment, the TVL has rebounded and stabilized at around $3.4 billion.