Uniswap, one of the leading decentralized exchanges, introduced a 0.15% transaction fee to its users with its latest update.
After this fee update, there has been a drop of more than 5% in the UNI price in the last few days.
UNI, which shot up to $4.27 with the fake Bitcoin spot ETF news, is at $3.92 at the time of writing, despite the decline it experienced.
At this point, evaluating the price drop in UNI and onchain mobility, Santiment pointed out that despite the falling UNI price, UNI's onchain activity, especially address activity, has increased rapidly in the last few days.
Stating that many investors sold UNI after transaction fees, Santiment said that this situation created FUD for UNI.
“Uniswap onchain activity, especially address activity, has increased rapidly in the last few days.
With the introduction of transaction fees on the network, many people are abandoning the asset and creating FUD.
At this point, Uniswap's introduction of the transaction fee leads to speculation in the direction of 'sell the news' in terms of the UNI price.”
Stating that despite the falling price of UNI, the increasing on-chain activity, especially Active Addresses and Network Growth, is noteworthy, Santiment said, “This difference shows that interest is increasing despite the downward trend in price.” said.
According to Santiment, although the falling price and increasing chain activity indicate that short-term UNI investors are at a loss, this difference points to positive market trends for UNI.
🦄 #Uniswap's #onchain activity, particularly address activity, has grown quickly in the past couple of days. With the introduction of fees to the network, many are dumping the asset and creating #FUD. Read our quick insight on what to expect from $UNI. https://t.co/DP5UuqzGKg pic.twitter.com/MU4VcE7Tlp
— Santiment (@santimentfeed) October 19, 2023
*This is not investment advice.
