Uniswap (UNI) Plunges 7% Amid Revenue-Sharing Vote as Crypto Market Shows Signs of Recovery
Decentralized cryptocurrency exchange Uniswap (UNI) experienced a significant price drop following a shift in the community’s revenue-sharing vote. This decline comes amidst overall weekly gains in the digital asset market, which also saw an uptick in daily trading figures. Currently, the total market capitalization stands at $2.56 trillion, marking a 0.5% increase as bullish investors aim to accumulate after mid-week lows.
Uniswap’s price fell sharply, reflecting Ethereum’s (ETH) earlier losses, which were over 0.1% after the excitement around spot ETF approvals waned. UNI is now trading at $10.86, representing a 7% daily drop, placing it below other top 20 cryptocurrencies by market capitalization. This drop has reduced Uniswap’s monthly gain to 41.72%, though daily movements have remained relatively flat.
Uniswap’s trading volumes grew by 19% alongside increased on-chain activity due to recent developments. Last week, UNI processed $20 billion in trades, highlighting the growing adoption of decentralized finance (DeFi) protocols and their increasing Assets Under Management (AUM).
Revenue Sharing Drives Uniswap
UNI was set to vote on the “fee switch” today, a proposal that would enable token holders to share in the exchange’s revenues. Ahead of the vote, Uniswap disclosed its financials to support the autonomous distribution of funds.
“Next Friday, May 31, the Uniswap Foundation (UF) will initiate the on-chain vote to upgrade the protocol, allowing its fee mechanism to reward UNI token holders who have staked and delegated their tokens. If you are a UNI holder who wishes to vote on this proposal, you must have your UNI delegated…”
Despite the positive outlook, some Uniswap users are concerned that this move might draw the attention of the Securities and Exchange Commission (SEC), potentially leading to stringent regulations.
Market Recovery Continues
The broader cryptocurrency market has shown signs of recovery following previous bearish sentiments that led to significant outflows. Today, both Bitcoin (BTC) and Ethereum (ETH) posted gains of 0.75% and 1.24%, respectively, with Bitcoin trading at $68,643 and Ethereum at $3,816. Other cryptocurrencies, such as Binance Coin (BNB) and Solana (SOL), also experienced slight inflows. Additionally, meme coins saw a resurgence, driven by renewed positive sentiment in the market.
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