2 November 2024
Get Ready For The Release Of $1 Billion Worth Of Ethereum
Uniswap's first yield farming will end on 17th November. The project was released in September, where it allowed users to earn UNI by depositing liquidity into the decentralized exchange. It was the most popular yield farms, garnering $1 billion, then $2 billion worth of deposits over mere weeks.
The initial yield farming opportunity has come to an end and with that $2 billion in cryptocurrency locked up as Uniswap liquidity will be deployed back into the markets.
An investment analyst, Darryl Wang, stated that around $1.1 billion worth of ETH and that much in stablecoins in Wrapped Bitcoin will soon exit Uniswap’s staking pools.
There is a question been raised about where that capital will go?
As per Wang, much of this liquidity will “leave the Uniswap system in search of higher yields.” He believes that 50 percent of the liquidity, so around $500 million in ETH and then another $500 million in stablecoins and Wrapped Bitcoin.
Considering Ethereum, there are lots of other opportunities for holders, including staking in DeFi applications like SushiSwap or Alpha Homora, or even in ETH2; being held for the long term, or being sold for stablecoins and altcoins.
He thinks, that most of it will be sold off. On the day when UNI yield farming launched, the altcoin went up by around six to seven percent. He said that it was a byproduct of farmers accumulating ETH to farm with:
“Commercial farmers loaded up on ETH to capitalize on UNI rewards and when they end, it is likely these farmers will offload their ETH as well.”
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