Uniswap price remains bullish as UNI holders anticipate incoming revenue-generating proposal
- The Uniswap protocol is deliberating a proposal to switch on Liquidity Pool Fees.
- If approved, it could enrich UNI token holders.
- Hope around this proposal has kept the altcoin bullish despite the wider market turning to previous bearishness post-CPI inflation reading.
Uniswap decentralized exchange (DEX) community members are deliberating a proposal that could deliver wealth to the hands of UNI holders. The proposal, which entails switching on fees for most of Uniswap liquidity pools (LPs), marks the latest development in a time-hallowed debate on the network’s protocol fees and overall finances.
Uniswap to switch on LP fees: Implications for users
If the proposal passes, the Uniswap protocol could increase its treasury repository and offer rewards to UNI holders. The decision to increase the monetization of its platform by turning on fees for most of its V3 LPs and all of its V2 pools could set a paradigm or standard for the wider DeFi market, out of which Uniswap bears a 70% market share.
According to the proposal’s author, Getty Hill, Uniswap can “monetize and bring in all these dollars by building a great open-source protocol that gets usage then that will incentivize other folks to do this too.” On this note, Hill holds:
I am hopeful that this kind of changes some of those industry norms.
Notably, Uniswap V2 has around $1.2 billion total value locked (TVL), with DeFiLlama data showing that the protocol recorded an average of approximately $367 million in daily volume on Ethereum over the past week.
On the other hand, Uniswap V3 has approximately $2.9 billion TVL and is live on several networks, including SushiSwap, Curve, Balance, and PancakeSwap.
Currently, discussions are underway about how the protocol would collect the fees, where the fees would be channeled to, and the type of projects that the tokens would facilitate. Further, users will streamline the details in community-based debates before the proposal goes to an official vote.
This would not be the first time Uniswap community members have proposed activating fees on the LPs. Another similar proposal was presented last summer, marking a point of dispute within the UNI community. Ultimately, however, the proposal toppled as opponents feared it could have wider tax implications for the protocol and its users.
Uniswap price outperforms the wider market amid proposal-related hope
Uniswap (UNI) price has outperformed Bitcoin (BTC) and Ethereum (ETH), rising 2.71% in the last 24 hours. In the same timeframe, trading volume was up 45%, suggesting investor interest in the altcoin as the buyer count increased, evidenced by the growing market value.
An increase in buyer momentum could see Uniswap price shatter the immediate hurdle at $5.37. Further north, the altcoin could tag the $5.90 resistance level or stretch a neck up to the $6.63 resistance level in a highly ambitious case. Such a move would denote a 30% uptick.
UNI/USDT 1-Day Chart
The alternative case is a gain-shedding exercise that could see UNI bulls collect sell-side liquidity under $5.10.
Also Read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: April lows could prove significant for BTC and ETH
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
