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Thursday, September 14, 2023

Uniswap’s 80% Gain Looks Scary

One of the biggest decentralized exchanges, Uniswap [UNI], is investigating the implementation of protocol fees. Recently, the decentralized network community started talking about how to activate protocol fees effectively.

A percentage of transaction fees will now go to the protocol thanks to the introduction of protocol fees. Several votes on the implementation of protocol fees have been cast in the past, but they have all been rejected. Additionally, liquidity providers frequently receive a portion of Uniswap trading costs. However, the implementation of protocol fees means that a portion of the money obtained through fees will be allocated inside the protocol.

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Uniswap Painting A Bearish Chart

Owners of UNI might profit from such a move, which explains the recent buzz around the UNI coin. At the time of publication, UNI was trading at $8.25, up 22.41 percent from the previous day. Its price at press time had increased by 143% from this year’s lowest point. If the Uniswap community decides to implement protocol fees, UNI will probably witness a significant increase in demand.

Even at its present pricing, the token is still considered cheap, especially in light of the fact that there are only about one billion of its coins in circulation.

UNI might increase its upside if the protocol fees are implemented, adding to its already outstanding performance since mid-June.

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A good accumulation following the significant price decline in the first half of 2022 has supported the performance. The accumulation significantly increased the mean dollar invested age over the past four weeks. UNI saw an exceptional rebound in profitability as a result of the significant inflows. The protocol turned a net realized loss of 159.33 million UNI into a profit of 3.76 million UNI on its existing network.

Its most recent upswing produced large profits, particularly for those who bought at or around the bottom.

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