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Will Uniswap’s new fees leave UNI in the dust?

3min Read

Uniswap may need to do more than win back its community’s trust based on recent events. But for market players, UNI’s decline may be a chance to accumulate the token cheaper.

Will Uniswap’s new fees leave UNI in the dust?

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  • On-chain activity on the Uniswap network increased despite the latest fallout.
  • Some unrealized profits plunged into losses.

In the last seven days, the price of Uniswap [UNI] has reduced by 5.13%— a notable contrast to what happened with several altcoins within the same period. However, there were grounds for the decrease, which saw a number of UNI holders sell off the tokens previously held.


Read Uniswap’s [UNI] Price Prediction 2023-2024


The community is not satisfied with the clarification

According to on-chain analytic platform Santiment, Uniswap’s decision to change its swap fees was highly responsible for the dump. On October 17, the decentralized exchange announced that the new swap fees for traders would now be 0.15%, but the structure would only affect specific tokens.

Some tokens impacted include Ethereum [ETH], Circle [USDC], DAI, Wrapped Bitcoin [WBTC]. The introduction of this fee structure means that Uniswap’s most active traders would need to deal with additional costs when making transactions on the protocol.

However, the decision did not seem to sit well with Uniswap users and some UNI holders. Although Uniswap founder Hayden Adams tried to explain the importance of the resolution, comments under his post did not find his statement detailed enough.

Before the latest controversy, users of the protocol cast doubts over the project’s commitment to Decentralized Finance (DeFi). This was because Uniswap was planning on introducing KYC requirements on the latest version of its wallet.

According to the critics, such a feature contradicts the fundamentals of the sector in which the project is built.

Activity rises and provides an opportunity

Despite the fall in price, there has been an increase in on-chain activity on the Uniswap network. According to Santiment, UNI active addresses jumped from 4656 on 12 October to 5805 at the time of writing. 

Daily active addresses show the number of distinct addresses involved in transactions. This metric indicates the daily level of crowd interaction with a token. So, the increase in UNI’s Active Addresses means there has been more speculation around the token than a few days back.

UNI price and Uniswap active addresses

Source: Santiment

While the jump in active addresses indicates rising interest in the token, the Network Growth showed otherwise. Network Growth shows the number of new addresses interacting with a network. 

At press time, Uniswap’s Network Growth was down to 208. This decrease means that there has been less adoption of the UNI token and a fall in traction on the network. Another metric that felt the impact of the fallout was the Market Value to Realized Value (MVRV) ratio.


Is your portfolio green? Check out the UNI Profit Calculator


As a measure of the market cap to realized cap numbers, the MVRV ratio shows how much of a fair value a token is. As of this writing, the MVRV Ration (7d) was down to -4.595%. This simply means that the number of UNI holders in unrealized profit had fallen.

At the same time, the fall offered market players an opportunity to buy the token at a discount.

Uniswap MVRV ratio and network growth

Source: Santiment

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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