Binance Whales Accumulate UNI Amid DeFi Market Weakness

Uniswap’s native token UNI began October trading near $7.50, maintaining relative stability for the first two weeks before experiencing a sharp mid-month decline that pushed it below $6.50. Since that drop, the asset has been trading primarily between $6 and $6.80, unable to recover its early-month strength despite occasional small rebounds. This price action occurs against a backdrop of subdued activity across the decentralized finance sector, reflecting broader market uncertainty.

Contrary to the price weakness, on-chain data from CryptoQuant reveals significant whale activity on Binance. The platform has seen a notable uptick in UNI outflows, particularly among the top 10 largest transactions typically associated with whale wallets. The pattern of UNI tokens moving from exchange wallets to external addresses is widely interpreted as a signal of accumulation or strategic repositioning by large investors. According to the data, Binance recorded a daily peak of 17,400 UNI in whale outflows, while the monthly peak reached 5,250 UNI—the highest level observed in three months.

This whale activity is drawing market attention because large investors typically act with strong conviction, entering positions only when they identify clear technical or fundamental signals. Their growing interest in UNI comes as the token continues its recovery from the market correction that began in July. While UNI hasn’t fully bounced back yet, the increasing whale presence suggests sentiment might be turning, with major players quietly positioning themselves for a potential comeback that could inject fresh momentum into the Uniswap ecosystem.

The whale accumulation occurs despite ongoing governance concerns surrounding Uniswap’s decentralization. Bitwise CIO Matt Hougan previously argued that Uniswap was undervalued when its market cap hovered slightly above $6 billion, noting that if it were a traditional company, it would rank around the 400th largest in global financial services. Since then, the market cap has suffered a significant decline, currently standing at $4.13 billion.

Research published earlier this year on the arXiv platform raised questions about how decentralized Uniswap truly operates. The study found signs of centralization in both the token network structure and liquidity pool organization. Specifically, much of the total value locked (TVL) is concentrated among a few key tokens and pools, indicating an uneven distribution of influence within the network that contradicts the decentralized ethos of DeFi protocols.

These findings align with more recent data from Token Terminal, which revealed that Uniswap has created approximately 340 millionaires through its UNI governance token. Out of roughly 381,600 UNI holders, this small but wealthy group holds wallets valued at over $1 million each, highlighting significant wealth concentration within the Uniswap ecosystem. This concentration raises questions about governance distribution and whether the protocol truly achieves the decentralized ideal it promotes.

The contrasting signals—price weakness versus whale accumulation—create an intriguing market dynamic for UNI. While the token faces headwinds from both broader DeFi sector sluggishness and specific governance concerns, the strategic positioning by Binance whales suggests some large investors see underlying value at current levels. The significant outflows from exchange wallets indicate these investors are taking long-term positions rather than engaging in short-term trading strategies.

The whale activity pattern represents the highest level seen in three months, marking a potential inflection point in market sentiment. Historically, sustained accumulation by large holders has often preceded price recoveries, though the current governance concerns and wealth concentration issues present unique challenges for UNI. Market participants will be watching whether this whale accumulation translates into broader market confidence and whether Uniswap can address the decentralization concerns that have weighed on its valuation.