UNI, the native token of Uniswap, one of the world's leading decentralized exchanges (DEX), is facing heavy selling pressure. From the daily chart of the UNI/USDT pair, the token is down 62% from its March peak, although the price has started to stabilize in recent weeks of trading.

Chart data shows UNI has rallied nearly 35% from its August low, indicating significant absorption of selling pressure.

UNI price is trending down on the daily chart | Source: TradingView

Uniswap Labs Generates $50M in Revenue While UNI Falls

While UNI is still far from its all-time high, down nearly 85% from its 2021 peak, several positive developments could help the token recover in the long term. According to data from Token Terminal, Uniswap Labs has generated over $50 million in interface revenue to date.

Last October, the protocol introduced a 0.15% fee on user transactions on its web interface and wallet app. The accumulated fees go to Uniswap Labs, marking a new revenue stream for the company. In mid-April, Uniswap Labs increased the interface fee from 0.15% to 0.25%.

Uniswap Fees | Source: @tokenterminal via X

Uniswap allows users to perform trustless token swaps across multiple platforms and blockchains. Uniswap initially launched on Ethereum in November 2018, before expanding to BNB Chain and other Ethereum layer-2 platforms such as Arbitrum and Optimism.

Thanks to its superior advantages, Uniswap has expanded its assets under management to over $4.738 billion, according to DeFiLlama. As of August 27, Uniswap is present on more than ten platforms, of which on Ethereum alone, the protocol is managing over $3.8 billion.

Uniswap TVL | Source: DeFiLlama

In total, data from DeFiLlama shows that Uniswap has generated more than $2.3 billion in trading fees. All of these fees come from swaps on Ethereum and other platforms. In the past 24 hours, Uniswap has generated more than $854,000 in trading fees.

Bright Outlook, Developers Prepare for Uniswap V4

As cryptocurrency prices grow, DeFi activity is likely to increase as well. Since recovering from mid-October 2023 to its peak in March 2024, the total value locked (TVL) in DeFi has more than doubled. This increase reflects growing interest and confidence from the community. According to DeFiLlama, DeFi TVL across all networks increased from around $40 billion in October to over $106 billion in March 2024.

With the high DeFi TVL, Uniswap will have the opportunity to perform more swaps, thereby increasing its revenue from trading fees. At the same time, this DEX will continue to be the preferred platform as it continuously improves its protocol.

Earlier this month, Uniswap Labs, the protocol's developer, announced a $2.35 million developer bounty fund to incentivize developers to find bugs in Uniswap v4 before its official launch. When it launches, the new version of the DEX will bring a number of groundbreaking features, including custom oracles and Hooks for increased flexibility.

Summary

Uniswap is the number 1 DEX in the market, but the UNI token is undervalued, possibly due to high selling pressure and market volatility, investors' expectations of UNI's use cases not being fully realized, along with competition and regulatory risks, all of which have reduced the value of UNI in the eyes of investors. However, in the long term, UNI has great potential for growth. Uniswap Labs has generated significant revenue of over $50 million from interface fees alone (note that this is different from the swap fees paid to liquidity providers on the Uniswap platform) and has grown its assets under management to over $4.73 billion.

Furthermore, with the upcoming launch of Uniswap V4, the platform will bring new features such as custom oracles and Hooks, which will not only strengthen Uniswap’s position in the DEX market but also add value to the UNI token. With the increase in DeFi activity and total value locked (TVL) in the ecosystem, UNI is likely to attract more investors as it realizes its long-term potential. Therefore, this could be a good opportunity to buy UNI while the price is still low before the market becomes more aware of its strong growth potential.

Source: https://tapchibitcoin.io/doanh-thu-uniswap-dat-dinh-uni-co-bi-dinh-gia-thap.html