Uniswap Price Prediction: Could UNI crash as founder faces backlash for introducing new swap fees?
- Uniswap founder Hayden Adams stated that starting October 17, a 0.15% swap fee will be charged.
- While Adams noted that the fees are only applicable on certain tokens, it included stable pairs, which make up 85% of the trading volume.
- Uniswap price stands far below the 50-day EMA, reclaiming which is crucial for recovery.
Uniswap price has marked some increase in the last few days, but the broader sentiment still remains rather bearish for the altcoin. To make things worse, the community did not seem to be on board with the protocol’s founder’s new swap fees idea.
Uniswap to charge swap fees
Uniswap founder Hayden Adams took to X, formerly Twitter, to announce that the protocol will now begin to charge its users a new swap fee. Adams noted that the fees are different from the Uniswap Protocol fee switch, which is voted on by UNI token governance.
The swap fee will be directed towards the improvement of the protocol. Adams reiterated,
“This interface fee is one of the lowest in the industry, and it will allow us to continue to research, develop, build, ship, improve, and expand crypto and DeFi.”
The swap fee, which has been set at 0.15% of the output token amount when the trade is settled, will only be applicable on certain tokens. Adams noted that the list will be updated frequently and currently includes - ETH, USDC, WETH, USDT, DAI, WBTC, agEUR, GUSD, LUSD, EUROC, and XSGD.
Some, such as Ari Paul, founder of Blocktower Capital, commended Uniswap’s move, saying,
“It’s ofc beyond reasonable to charge a fee for front end or extra features separate from protocol. Amusing to me you even have to explain this, but smart communications.”
However, others did not seem to be on board with people saying,
Not sure I see the value for the users or the holders.
— Crypto JAW (@jaw_crypto) October 16, 2023
Sounds like a new tax to me. Just how to extract more money from the users to the team.
Users called the list completely useless since the tokens included in it are mainly stable pairs, which make up 85% of the trading volume.
Uniswap trading volume by pair
Uniswap price could fall back
Uniswap price trading at $4.12 swung by 4.36% during the intra-day trading hours after bouncing back from the $3.99 support level a few days ago. However, the next crucial barrier necessary to initiate recovery stands nearly 8% above the trading price.
This $4.47 resistance level coincides with the 50-day Exponential Moving Average (EMA), reclaiming which is important for UNI to recover. But looking at the Relative Strength Index (RSI), which stands in the bearish zone at the moment, the outcome looks mostly bearish for UNI.
This would be verified if the altcoin falls through the $3.99 support line, which could send Uniswap price toward $3.50.
UNI/USD 1-day chart
However, if the broader market cues turn bullish, the bearish thesis could be invalidated, provided the $4.47 resistance level is breached and flipped into support. Uniswap price would then be looking to breach the 100-day EMA line at $4.73.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
