Decentralized exchange (DEX) Uniswap’s UNI token is seeing a reduction in supply on Binance crypto exchange. Latest exchange data shows strong token outflows from the trading platform, suggesting that UNI could be on the cusp of a supply-scarcity driven uptrend.
UNI token supply on Binance shrinks
According to the UNI Binance exchange netflow (total) chart, the token’s netflow bars are becoming increasingly denser, highlighted by consistent outflow trends. It shows that the so-called ‘smart money’ is accumulating UNI close to its macro-bottom.
High exchange outflows typically indicate that long-term holders (LTH) are depositing their holdings to self-custodial wallets or deploying them for yield-generating strategies across decentralized finance (DeFi) protocols.
As a result, the selling pressure on the underlying asset decreases. Reduced selling pressure, over time, lays the foundation for a solid accumulation zone, which is usually followed by a bullish rally.
The following 2-hour UNI chart shows some recovery in the token’s price since Monday. Over the past 3 days, the token has posted gains worth over 9 percent, showing signs of renewed strength and momentum.
If UNI is able to sustain heightened exchange outflows then it could soon see a fresh rally, propelling it to its first major resistance around $4.14 on the daily timeframe. However, to understand whether UNI has a real shot at challenging its previous highs, it is important to look at some protocol-level metrics.
What does Uniswap protocol data indicate?
According to data from Token Terminal, Uniswap’s total token trading volume over the past year is slightly more than $140B. While decent, it is still on the lower side when compared to data over the year, especially in relation to the spike observed in November 2025.
Meanwhile, the number of token holders over the past year remains flat, hovering around 382,000 as of Monday. Worse, the total value locked (TVL) on the protocol has been trending downward over the last year, just above $4.28B as of Monday.
One silver lining is that Uniswap continues to be the dominating DEX in the Ethereum DeFi ecosystem. On May 6, the DEX hit a new milestone as it recorded $3T in all-time volume on the Ethereum mainnet.