Try Quests to earn cryptoState of UNI LP when ETH price drops
On June 21, ETH dropped below $2k for the first time in months. Here is the reaction of Uniswap V3 LP-ers to the price action of ETH.
Although most liquidity provider had decreased liquidity at least once during the dip. Overall, the market is confident in ETH and/or providing liquidity (not only on UNI V3) as a means of earning passive income which is shown by the high % of increasing the liquidity back after decreasing it during the dip.
Throughout the dip, UNI V3 had experienced increased total value locked. This shows that liquidity providers are not very concerned about the dip in ETH value, if not confident that ETH will bounce back in price.
From the findings, only around 10% of the liquidity providers remain passive about the price change. Around 16% of the addresses decreased liquidity and did not provide liquidity again to UNI V3. About 87.8% of the addresses that decreased liquidity provided liquidity again some time during the past week. While it's not clear whether UNI V3 liquidity providers had moved all funds to other dexes, throughout the dip, most of the liquidity providers had at least provided liquidity in one other dex than UNI V3, which shows UNI liquidity providers are not afraid of changing environments to gain better yields.