UNI Market Correlation

    Uniswap's native token, as well as a governance token, is the UNI token. The term "governance token" refers to the power of token holders to vote on platform modifications and advancements. Through a voting mechanism, holders of UNIs can have a significant impact on development choices.

    Introduction

    The bounty here addresses the price distribution of the UNI tokens and compares them with ETH and also with a well-known DEX token SUSHI$ over a chosen period of time.

    Methodology

    The token prices of UNI are obtained from the on-chain data and they are compared with ETH over the same period of time and further with SUSHI to see their correlation in the price fluctuations and variations.

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    This indicates that the price of UNI token has correlation with the price of ETH as the price of the ETH token had been increasing on a logarithmic scale when compared with UNI token which is the reason for the less trend in the chart.

    Imported Image Reference:https://www.macroaxis.com/invest/market/UNI.CC--compareProfile--ETH.CC

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    The second part of the bounty is addressed by this chart.This shows that there is a direct correlation in their prices between SUSHI and UNI tokens from the trend in the price variations over time.

    Reference:https://www.macroaxis.com/invest/pair-correlation/UNI.CC/SUSHI.CC/Uniswap-vs-Sushi

    Conclusion:

    Uniswap Protocol Token is predicted to produce 1.04 times better return on investment than Sushi during a 90-day trading horizon. Uniswap Protocol, on the other hand, is 1.04 times more volatile than Sushi. Per unit of risk, it trades roughly 0.17 of its potential profits. Sushi generates roughly 0.12 per unit of risk at the moment.

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