Uniswap’s $UNI Token Price Drops 10% as 3.74 Million Tokens Moved to Binance

In the decentralized finance (DeFi) space, significant token transfers often stir the market and spark discussions. Recently, a substantial amount of Uniswap’s $UNI tokens, valued at millions of dollars, was moved from a time-lock contract. This event revealed a large sum of money that some might have hoped would remain untouched. On March 21, 2025, the contract unlocked 27.9 million $UNI tokens. In the days following, millions of these previously locked tokens were transferred to Binance, one of the world's largest crypto exchanges.

In the last eight hours, an additional 2.5 million $UNI tokens, worth around $15.31 million, were moved to Binance. This follows a couple of days of consistent $UNI movement to the exchange, which some are beginning to see as a potential setup for market manipulation, a liquidity shift, or a straightforward $UNI price pump, with or without a subsequent dump.

The native cryptocurrency of the Uniswap decentralized exchange, the $UNI token, has recently experienced price turbulence. This coincides with the transfer of several million tokens to centralized crypto exchanges, presumably for the purpose of selling them. In total, around 3.74 million $UNI, worth about $23.53 million, entered Binance in just the last two days. This has contributed to a further 10% dip in the token’s price.

In recent weeks, some have attributed the recent downtrend to the unlocked stash of approximately 35 million tokens. These massive transfers are common in the crypto world but always have an impact. When millions of $UNI tokens are shifted into a centralized exchange like Binance, it creates significant selling pressure that could lead to a price drop, especially if many of those tokens are subsequently sold. This potential price drop is why traders and investors tend to become anxious when they see such high volumes of tokens moving to exchanges.

The address managing $UNI transfers continues to send tokens to Binance. The wallet now contains 1.24 million $UNI (worth $7.73 million), but it seems that as much as 5 million $UNI, in total, could be transferred to the exchange. If this happens, it could push the price of $UNI even lower, unless the people who run the exchange decide to keep the $UNI they have in storage.

The 27.9 million $UNI tokens were unlocked from time-lock contracts on March 21 and are now circulating in the Uniswap ecosystem. This situation raises serious questions about the intentions of Uniswap Foundation members who now control a large amount of these governance tokens. Uniswap Foundation members now have significant governance power and can dictate the future direction of the protocol, potentially influencing a powerless community.

Given the large number of $UNI tokens moving to Binance in such a short timeframe, several possible reasons for these actions come to mind. Some traders might see it as a sign to take profits, while others might use it as a signal to enter new short-term positions. The transfer could also be institutional or whale-related, suggesting plans to sell. Transfers to centralized exchanges like Binance generally indicate intentions to liquidate assets.

The recent price dip of $UNI, caused by the initial token transfers to Binance, has raised concerns among some investors. Over the last few days, the price of $UNI dropped from $6.80 to $6.10. In the volatile world of cryptocurrencies, price dips and surges are common. However, with $UNI on the verge of transferring 5 million tokens to Binance, traders are on high alert, waiting to see how this will impact the price of the token.

Investors and market analysts are closely monitoring the situation to determine whether this large-scale transfer is a temporary adjustment or a more drastic shift in sentiment. The price of $UNI has historically been sensitive to large sell-offs, and if the remaining 1.24 million tokens in the transferring address are moved to Binance in the next few days, the pressure to sell could intensify, causing the price to diminish further.

Some are adopting a wait-and-see posture, cautioning that the price drop may be temporary. Their view holds that once most of the unlocked tokens have found homes in the market and the big sell orders have been worked off, the price of $UNI could stabilize or even rebound. The outcome depends significantly on how much of the transferred $UNI is actually liquidated to meet market demands versus what amount is held, staked, or otherwise put to work in the DeFi ecosystem.

The recent increase in $UNI transfers from the Uniswap time-lock contract to Binance marks a crucial moment for both the Uniswap protocol and the token’s price. Although the relocation of 27.9 million $UNI tokens might seem like just another temporary event in the life of a crypto asset, the ongoing transfer of an additional 5 million tokens could have some longer-lasting impact on how investors price, perceive, and feel about $UNI.

The cryptocurrency community is divided in its interpretation of these massive transfers. Some see the infusion of $UNI into Binance as a precursor to even more volatility, while others view it as a necessary adjustment following the release of locked tokens. Regardless, the situation serves as a reminder of the wild and unpredictable nature of the crypto world.

As $UNI continues to face price swings due to major transfers, it is vital for stakeholders to stay informed about developments and understand the dynamics of the situation. The outcome, if there is one, seems likely to depend on what the remaining unlocked tokens do and on the broader mood in the DeFi community. Currently, the crypto world is focused on Binance and how the situation will unfold for $UNI.