Crypto analyst Darkfost issued a significant warning today regarding the Uniswap (UNI) token, indicating that the recent influx of assets into exchanges could be placing downward pressure on its price. Following an impressive ascent, in which UNI soared by around 370 percent from its lows in June, the token is now experiencing a distribution phase.

Recent data highlighted that Uniswap’s total value of locked assets surpassed $4 billion as of September, and the trading volume for the decentralized exchange hit a remarkable $93.6 billion. However, despite these numbers indicating robust activity, UNI’s price has dropped more than 30 percent from its peak of $10.90.

Darkfost observed that inflows of UNI into Binance, one of the largest cryptocurrency exchanges, surged to their highest levels of the year during this period. Notably, daily inflows surpassed $40 million at certain points, indicating significant trading activity. The Z-score, which assesses inflow behavior compared to historical averages, also rose above 4 on multiple occasions, further illustrating the scale of this market movement.

Despite these high inflows, Darkfost noted a deceleration in the rate of new investments into the market. He suggested that if this trend continues, the current correction might be nearing its end.

Disclaimer: This analysis is not intended as investment advice.