We can see from both charts a trend. Amidst regular deposit volumes, Sushiswap recorded peak deposits of over 400M shortly after ETH price drop. Similarly, Uniswap V2 recorded peak deposits of over 200B on June 25, 2021.

On this note, it is reasonable to conclude that it is a high probability that investors who exited their positions in Uniswap V3 liquidity pools after ETH price drop moved to either UniswapV2 or Sushiswap, per available data.

Let's take a look at Uniswap V2 and Sushiswap hourly deposit sums after ETH dropped in price.

With the people who are decreasing liquidity and not coming back in are they holding the amount they took out of their positions or are they moving it to another DEX pool (Sushi, Uni v2)?

When ETH price dropped below $2,000 on June 21, 2021, this is how liquidity providers in the top-5 pools reacted:

• USDC-WETH 3000 60 - Investors started decreasing their liquidity and re-entered a new range gradually until June 24 when they decreased the pool's liquidity by a whopping 27%. The pool's reserve has since stayed put amidst what could be interpreted as investors re-entering new ranges.

• USDC-USDT 500 10 - Investors in this pool are seen to be of two types; those exiting for good and those re-entering new ranges. The pool's total reserve has dropped by ~31% since June 21, 2021.

• WETH-USDT 3000 60 - This pool of investors is more confident and staying put or re-entering new ranges. So far the reserves have dropped by only 2% since ETH's drop in price.

• SHIB-WETH - Investors in the top 2 SHIB-WETH pools have by far been staying put with minimal change in liquidity.

Are people decreasing liquidity of their v3 pools and re-entering it in a new range or are they staying put?

Pool Selection

To understand the effect of ETH drop in price, we query the top 5 liquidity pools and analyze how their reserves changed in reaction.