Uniswaps UNI Token Faces Brief Correction Post Massive Rally
- The decision to alter the fee system in favor of UNI token staking is the primary reason.
- Other DeFi protocols have also seen a dramatic increase in trade volumes.
On Friday, February 23, Uniswaps native token UNI saw a significant surge in value. The decentralized exchanges decision to alter the fee system in favor of UNI token staking is the primary reason for the 75% price increase in Uniswap. However, at the time of writing, the price faced a brief correction, mostly due to investors and traders booking huge profits.
To encourage more participation and engagement in the governance ecosystem, the proposal proposes a fee-sharing structure that UNI holders may use to stake and delegate their tokens. Focus is moving away from the AI trend and toward the growing decentralized finance (DeFi) industry, according to on-chain data provider Santiment.
Shifting Focus Towards DeFi
According to Santiment, there have been significant price gains in assets that allow for decentralized crypto lending, borrowing, and exchange, including $UNI, $COMP, $SUSHI, and $AAVE. The Uniswap ecosystems central proposition to reward staked and delegated token holders is the cause of this sudden increase in value.
As a result, investors are shifting their focus away from the once-hyped AI industry and toward decentralized financial solutions, as seen by the increasing popularity of DeFi protocols.
Other DeFi protocols have also seen a dramatic increase in trade volumes. For instance, trading volumes for COMP surged 410% to over $175 million, aligning with the rising price. Likewise, trade volumes have increased by an astounding 153% and the price of SushiSwap (SUSHI) has increased by 27%.
Along with the Uniswap fee sharing plan, some crypto industry watchers think that Blur and Lido Finance might also follow down the same path. There has been a noticeable capital rotation in the crypto market, as seen by the recent trends showing a boom in decentralized finance (DeFi) assets and a commensurate decrease in the value of AI tokens.
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Read more: https://thenewscrypto.com/uniswaps-uni-token-faces-brief-correction-post-massive-rally/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
