Uniswap’s decision to start charging swap fees has sparked speculation about a “sell the news” reaction, but a closer look provides a different perspective.
Despite a 5% drop in the price of UNI since the initial announcement, activity on Uniswap’s chain continues to grow.
According to the latest data from Santiment, there is a notable divergence between the decreasing UNI price and the increasing on-chain activity.
The cryptocurrency analysis platform reports that the negative MVRV indicates that short-term UNI holders may be feeling uncomfortable.
However, both Active Addresses and Network Growth are at levels not seen since July of this year. Interestingly, this trend continues to rise despite the cryptocurrency market’s price decline.
Uniswap Labs, the organization behind the decentralized cryptocurrency exchange, implemented a 0.15% fee starting on Tuesday for transactions involving ETH, USDC, and other tokens. Only swaps made through Uniswap Labs’ new user interface are subject to this fee.
This fee is different from Uniswap’s current “protocol fee,” which is overseen by governance voters. Uniswap Labs is implementing this fee as part of its effort to sustainably fund its operations.
According to Uniswap creator Hayden Adams, this fee will enable them to continue researching, developing, building, deploying, iterating, and expanding cryptocurrency and DeFi.
While the fee implementation has led to many investors selling assets and creating FUD (Fear, Uncertainty, Doubt), a key point allowing Know Your Customer (KYC) verification on upcoming Uniswap v4 pools has sparked discussions about the future of DeFi, although it is an opt-in choice, not a requirement.