It is difficult for UNI to break the previous high
UNI's potential outbreak points:
1. SEC litigation risk is lifted: In April, UNI plummeted because Uniswap was sued by the SEC. Now it has not gotten rid of the litigation risk, so it is difficult for the price to rise. If the litigation risk is lifted, it will greatly boost the confidence of UNI investors.
2. Uniswap is the beta factor of the Ethereum ecosystem. Uniswap is not only in the Ethereum mainnet, but also in Arbitrum, OP, Base and other head L2s. It is also the leader of DEX. If the Ethereum ecosystem ushered in a big explosion under the promotion of subsequent ETFs, Uniswap will be one of the main beneficiaries.
This will be the main driving force for UNI's future rise.
However, UNI also has an important uncertainty factor, which is about the activation of the protocol fee switch.
UNI has always been unable to capture the value of the protocol, which is where UNI has been criticized. The Uniswap community has also been hoping to activate the protocol fee switch. At the end of May, it was planned to vote on the proposal to enable the protocol fee for the V3 pool, but it was postponed again.
However, enabling the protocol fee switch is actually a double-edged sword, and its impact is difficult to predict.
First, the protocol fee is separated from the LP fee, and LP is very sensitive to changes in income. Enabling the protocol fee may cause some LPs to lose;
Second, the protocol fee may not be distributed to UNI holders after it is collected, because if it is done, it is likely to confirm the accusation that UNI is a security, and the risk of SEC litigation will be more difficult to eliminate; and if it is not distributed to UNI holders, it seems that there is little difference between collecting the protocol fee or not.
A more realistic possibility is to enable the fee switch but not distribute it to UNI holders, and the risk of SEC litigation will be eliminated.
In this case, it is not difficult for UNI to break $30, but it feels difficult to reach a new high.
