Uniswap price crashes 7% in two days in wake of new interface fee racking up over $500,000 in a week
|- Uniswap price is close to losing the support of $4.09 after falling by nearly 7% since October 24.
- Uniswap founder Hayden Adams announced the fee last week, which will be dedicated to improving the protocol.
- In the span of a week, this fee brought in $524,457, most of which came from Ethereum.
Uniswap price surprised the crypto market after moving in the opposite direction of broader bullish cues. The reason behind this is likely the outcome expected of the most recent change made by the protocol's founder, Hayden Adams, last week.
Read more - Uniswap Price Prediction: Could UNI crash as founder faces backlash for introducing new swap fees?
New Uniswap interface fee makes big bucks
Uniswap founder Hayden Adams announced on X, formerly Twitter, that the protocol would be introducing a new swap fee, also known as an interface fee. After announcing it last week, the fee structure went live on the mainnet. In just the span of seven days, this fee managed to accrue more than $524,457.
Uniswap interface fee
The majority of this amount is made up of the swap of Ethereum with Optimism, with Polygon (MATIC) and Arbitrum contributing as well. Founder Adams has been clear from the beginning that at 0.15% of the output token amount, Uniswap's interface fee is one of the lowest in the industry. He also added,
"...it will allow us to continue to research, develop, build, ship, improve, and expand crypto and DeFi.
The feedback from the investors at the time of the announcement was not very positive, as many considered the fee to be nothing more than tax and a way for Uniswap to extract money from users. This sentiment is still prevailing, and it can be witnessed in the fact that Uniswap's price declined at a time when the entire crypto market was rallying.
Uniswap price takes a hit
Uniswap price at the time of writing is trading at $4.09 after declining by more than 6.82% in the span of a mere two days. This crash came at a time when the rest of the market was seeing green, with Bitcoin trading well above $34,000.
The bearish turn of events is being confirmed by the Relative Strength Index (RSI) as well, which is below the neutral line at 50.0. The indicator sitting in the bearish zone signals a confirmation that UNI could see further lows. Right now, the critical support level is at $3.99, and falling below it could result in the altcoin marking fresh 2023 lows.
UNI/USD 1-day chart
However, a bounce back from the $3.99 support level would give Uniswap price another shot at rising back to $4.47 resistance level. In doing so, UNI would also flip the 100-day Exponential Moving Average (EMA) into a support floor, invalidating the bearish thesis.
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