• 29 May, 2024
News

UNI Token Faces Resistance at $4.47 Amid DeFi Evolution

Uniswap, the pioneering decentralized protocol, has just unveiled a significant development set to reshape the landscape of decentralized finance (DeFi). As revealed by the founder and CEO, Hayden Adams, Uniswap will introduce a 0.15% swap fee on certain tokens starting from October 17.

Adams expressed his satisfaction with Uniswap’s continuous efforts to disrupt traditional financial gatekeepers and promote accessibility and ownership in the digital asset realm. He also emphasised Uniswap’s commitment to sustainability, transparency, and its core values since its inception.

This move marks a significant departure from Uniswap’s history, introducing a nominal interface fee of 0.15% on both the Uniswap web app and the wallet. Remarkably, within the industry, this fee remains one of the lowest. The list of affected tokens encompasses well-known assets like ETH, USDC, WETH, USDT, and DAI, among others, as documented on the Uniswap help centre.

It’s important to note that this fee will apply to trades executed via Uniswap Labs interfaces on the mainnet and supported Layer-2 protocols. However, two categories of tokens are exempt: those involved in swaps between stablecoins and those facilitating the conversion between ETH and wrapped ETH (WETH).

Users have the flexibility to engage with this service through aggregators, other user interfaces, or by directly interacting with the smart contracts. It’s crucial to distinguish this new swap fee from the Uniswap Protocol fee switch, which requires a vote from UNI token governance.

Uniswap’s UNI, currently trading at $4.04,  experienced a 4.36% swing during intra-day trading, rebounding from the $3.99 support level. Nevertheless, the next significant hurdle for UNI’s recovery looms approximately 8% above the current trading price at the $4.47 resistance level, coinciding with the 50-day Exponential Moving Average (EMA).

The Relative Strength Index (RSI) currently sits in the bearish zone, signalling a challenging road ahead for UNI. If the altcoin breaks below the $3.99 support line, it could potentially tumble to $3.50. However, a bullish market sentiment could invalidate this bearish outlook, provided the $4.47 resistance level transforms into support, allowing UNI to target the 100-day EMA at $4.73.

Uniswap’s introduction of a nominal swap fee marks a significant step in its journey towards sustainability and transparency, impacting selected tokens while preserving accessibility for users across various interfaces. The fate of UNI’s price remains uncertain, hinging on market sentiment and key technical levels.

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