The Unibot token was among the top crypto gainers in July as its price rallied by 400% to reach an all-time high of $199.90 on July 28. The project defied the market’s negative trend as both Bitcoin (BTC) and Ether (ETH) dropped by nearly 4%.
However, by Aug. 3, 2023, the token’s price retraced 44% from its peak, leading to doubts about whether this surge was merely a fleeting trend. Nevertheless, it is essential to consider the project’s fundamentals, which seem to suggest otherwise.
The project is a harbinger of a newfound bullish narrative around decentralized Telegram bots for trading on decentralized exchanges (DEXs). The total market capitalization of the sector surged above $150 million from around $20 million at the start of July, per CoinGecko.
While a number of copycats have launched in the market, Unibot (UNIBOT) has a dominant market share, with 72.3% of the total market for decentralized Telegram bots for trading on DEXs. Since May 2023, Unibot has gained popularity with increased usage and price.
It provides features such as limit orders, maximum extractable value protection and sniping. Sniping enables instant purchase of newly listed token pools on Uniswap, which is preferred among high-frequency traders.
Sniping LPs & reading the chain used to give a huge edge for short-term trading
Now that we have tools like $UNIBOT, that edge is fading
What’s the edge now?
— 0xPajke (@0xPajke) July 26, 2023
Unibot has become popular among sophisticated decentralized finance (DeFi) users, reflected in its increased usage. The token has a low price-to-earnings (PE) ratio compared to other DeFi protocols, providing fundamental strength to its price despite the astronomical price surge.
Telegram bots trading could be a lucrative DeFi niche
Although Unibot’s design may not be revolutionary or feature any technological breakthroughs, the Telegram bot offers a superior trading experience on Uniswap, making it increasingly popular among traders.
Unibot’s trading volumes nearly tripled in July, reaching a high of $7.63 million on July 23, per a Dune dashboard.
Uniswap bot trading volumes. Source: Dune
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