After a dramatic surge yesterday, Uniswap’s UNI token has pulled back sharply, illustrating the volatility that still grips the DeFi market.
On Wednesday, UNI spiked more than 35%, climbing from $3.21 to $4.36 following news that BlackRock plans to integrate its Treasury-backed digital fund, BUIDL, onto UniswapX. However, the momentum quickly faded. As of Thursday, UNI is hovering around $3.38, roughly 23% below yesterday’s peak.
The sharp pullback came amid heavy selling, with whales offloading roughly 5.95 million UNI tokens, worth about $27 million, during the spike. The move was compounded by leveraged traders getting liquidated in a FOMO-driven frenzy.
Broader market sentiment remains cautious: UNI is still down 29% over the past month, suggesting the rally was driven by headlines and short-term trading rather than lasting demand.
BlackRock Sparks Initial UNI Rally
Uniswap’s UNI token spiked on Wednesday after Uniswap Labs and Securitize announced a strategic integration to make BlackRock USD Institutional Digital Liquidity Fund (BUIDL) shares available to trade via UniswapX technology.
The move will make BUIDL shares available on UniswapX, with Securitize handling the tokenization of real-world assets. BUIDL gives investors on-chain access to short-dated U.S. Treasuries, cash, and repo agreements.
Beyond the mechanics, the bigger story is that a major traditional asset manager is now engaging directly with DeFi liquidity, signaling a notable wave of institutional interest.
Legal Setback for Rivals Clears the Way
The announcement came with a legal boost for Uniswap, as a U.S. federal judge dismissed a patent infringement lawsuit against Uniswap.
The case, brought by entities linked to Bancor, had claimed Uniswap’s early automated market maker design infringed patents. The court ruled that the claims were too abstract to be upheld under U.S. law, removing a significant legal overhang for the protocol. The dismissal is procedural, giving the plaintiffs a window to amend and refile.
Why This Matters
BlackRock’s entry signals growing institutional confidence in DeFi, while the legal win removes a key barrier, highlighting both the promise and persistent volatility of decentralized markets.
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People Also Ask:
UNI is the governance token of Uniswap, a leading decentralized exchange (DEX) that allows users to trade cryptocurrencies without intermediaries.
It signals legitimacy and growing adoption, potentially increasing liquidity and confidence, while showing that traditional finance is engaging with decentralized markets.
DeFi markets are less regulated, less liquid, and heavily driven by news and sentiment, making price swings more extreme than traditional assets.
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