$1 billion worth of Ethereum is about to be released into the DeFi market

In a few days' time, on Nov. 17, Uniswap's first yield farming opportunity will end.

When the project's governance token released in September, a yield farming opportunity was launched that allowed users to earn UNI by depositing liquidity into the decentralized exchange.

This rapidly became one of the most popular yield farms, garnering $1 billion, then $2 billion worth of deposits over the span of mere weeks.

With the initial yield farming opportunity coming to an end, the $2 billion in cryptocurrency locked up as Uniswap liquidity will be deployed back into the markets.

According to Darryl Wang, an investment analyst at leading DeFi fund DeFiance Capital and a former JPMorgan investment banker, around $1.1 billion worth of ETH and that much in stablecoins in Wrapped Bitcoin will soon exit Uniswap's staking pools.

The UNI yield farming opportunity launched with the token will end unless soon extended.

Focusing on Ethereum, he said that there are a number of other opportunities for holders, including staking in DeFi applications like SushiSwap or Alpha Homora, or even in ETH2; being held for the long term, or being sold for stablecoins and altcoins.

As many remember, on the day UNI yield farming launched, the altcoin rallied by around six to seven percent.

"Commercial farmers loaded up on ETH to capitalize on UNI rewards and when they end, it is likely these farmers will offload their ETH as well."

This fact, coupled with a rally going on in the altcoin market as I write this, lead Wang to suggest that Ethereum being sold for altcoins down the risk curve has a high probability of playing out.