As Altcoins Rise, Ethereum’s Bearish Signal Again: Rival Project Will Hit Back!
Uniswap’s decision to launch its own blockchain, Unichain, could seriously threaten Ethereum’s revenue stream and network operations.
DeFi researcher and educator Wajahat Mughal stated that Uniswap’s (UNI) decision to introduce its own blockchain network, Unichain, is a negative sign for Ethereum (ETH) in 2024.
Mughal emphasized that Uniswap (UNI) could charge some fee classes on its new network, which would endanger Ethereum’s economic structure and network operations. As it will be recalled, Uniswap had recently created a shock effect in the ecosystem by announcing its Unichain project.
Uniswap (UNI) will be able to collect transaction fees (gas) and MEV fees after moving to its own chain. Although it is not yet clear how much of the operation will shift from the Ethereum (ETH) network to the new blockchain, it is thought to be significant.
This will reduce Ethereum's network activities, which will affect the speed at which Ethereum tokens are burned. Directing the fees directly to the Uniswap (UNI) team will also weaken Ethereum's revenue stream.
It is stated that Uniswap's (UNI) migration to its own blockchain weakens Ethereum's promise in many ways. It is reported that Uniswap, which is the largest application in the DeFi field in terms of revenue, has decided to keep this revenue for itself, which has led to an interesting discussion that questions where Ethereum is today.
With lower L1 (Layer 1) activity, less GWEI, and falling cash flow, there are experts who state that Ethereum is not an "ultra-sound money".
According to CoinGecko data, Ethereum, which has increased by 2% in the last 24 hours, is traded at $2,444 at the time of writing.