In recent weeks, some crypto such as Starlink and Uniswap have shown signs of awakening.
Analysis of the Starlink and Uniswap cryptos
These are only signs so far, but at least they are quite obvious. However, there is nothing to suggest that they are already recovering from the losses of the last bear market.
Starlink’s STARL token has seen the most significant price movement.
However, to put these moves into context, you have to go back to 2021, the year of the bang.
STARL debuted on the crypto markets in mid-2021, after the first part of the last big bull run but before the second. At the time, we had just seen the flight of miners from China and an initial collapse from the April highs.
Virtually from the beginning until the peak of the bull run in November that year, it did nothing but rise, reaching 88 millionths of a dollar in just four months.
Then it began to fall, with the real collapse starting in January 2022.
During the bear market it fell to 2 millionths of a dollar and then fell again in 2023. The low point of this decline was the 0.5 millionths reached last month. At that point, the loss from the highs was over 99%.
In October, however, with the recovery of the crypto markets, it made a real small boom.
In fact, it climbed as high as 12 millionths last week, an incredible +2,000% in less than a month. But then it quickly fell back to just over 2 millionths, only to rise again yesterday to reach 8 millionths.
It is now around 6 millionths of a dollar, which is 967% above the lows, but still 95% below the highs. Today alone it is up 40%.
The reasons behind the Starlink and Uniswap crypto boom
The fact that the current price, after all these moves, is still 95% below all-time highs suggests that we are still a long way from a possible recovery, but the fact that it is up +100% since the beginning of the year seems to mean that the descent may be over.
However, the descent did not end at the end of 2022, as in the crypto markets, but only in September 2023, suggesting that the problems that caused the collapse are far from over.
On the contrary, given the volatility of recent weeks, its price movements seem purely speculative, probably due to the very low trading volumes and the persistent volatility of this October 2023 on the crypto markets.
It should be remembered that the Starlink token has nothing to do with Elon Musk’s famous Starlink company, and is instead just a token linked to an online game.
The official website now appears to be offline, although tweets are still being posted on the X profile. However, the tweets are nothing more than retweets from Warper Games. The last real tweet dates back to August, when the price was still plummeting, and there is nothing to suggest a concrete reason for the small boom in October.
UNI, the symbol for Uniswap, is a different matter.
In fact, Uniswap is still the most widely used DEX in the world, and UNI’s price movements seem less speculative.
The token was launched in 2020, but of course it was in 2021 that it made a splash.
It rose to almost $45 in May 2021, but then started to fall.
The real crash started in the second half of November that year, when the last big crypto bubble started to deflate.
This phase ended in June 2022 with a price of around $3.6.
In fact, the collapse stopped at that point, although after a good rebound in August, the price returned first to below $5 in late 2022 and then to $3.8 about ten days ago.
In other words, although it has never fallen below $3.6 since the middle of last year, it was close to those lows again a fortnight ago.
However, there was a 15% rebound in the following days, most likely due to the October awakening of the crypto markets. Although it has risen above $4.4, it has fallen back to around $4 in recent days, not much higher than the $3.8 it was trading at mid-month.
The reasons behind the trend
It is hard to imagine that there are any reasons behind these movements other than the general movements of the crypto markets.
The 24th of October, the day it rose to $4.4, was also the day of the big Bitcoin surge, and it is very likely that this is the only reason for this small rise.
On the other hand, as soon as the excitement died down, the price of UNI returned to its previous level, only slightly higher.
For more than a year now, it has practically done nothing but hover above $3.6, albeit with a peak of over $9.7 in July last year.
On the contrary, since August 2022, a new phase of downward lateralisation seems to have started, which may still be ongoing, bringing UNI’s price back close to the lows of the previous bear market after the July 2022 rebound.