Uniswap’s decision to launch its own blockchain, Unichain, could seriously threaten Ethereum’s revenue stream and network operations.
Uniswap’s (UNI) introduction of its new blockchain called Unichain is expected to be the first blockchain to be launched in 2024, according to DeFi researcher and educator Wajahat Mughal.
He stated that it was a negative sign for (ETH).
Mughal emphasized that Uniswap may charge certain fee classes through its new network, which could jeopardize Ethereum’s economic structure and network activities. Uniswap recently made a big impact on the ecosystem by announcing its Unichain project. Uniswap (UNI) will be able to charge transaction fees (gas) and MEV (Maximal Extractable Value) fees after switching to its own chain. Although it is not yet clear how much of the operation these two revenue streams will shift from the Ethereum (ETH) network to the new chain, it is thought to be significant.
This will reduce Ethereum’s network activity, thus affecting the speed at which Ethereum tokens are burned. The fees being funneled directly to the Uniswap (UNI) team will also weaken Ethereum’s revenue stream.
It is stated that Uniswap’s transition to its own blockchain has weakened Ethereum’s promises in many ways. Uniswap, which is the largest source of income in the DeFi space, has decided to keep this income within itself, which has started an interesting discussion that questions the current state of Ethereum.
With lower L1 (Layer 1) activity, declining GWEI, and falling cash flow, there are expert opinions that Ethereum is not an “ultra-sound money.”
Ethereum, which has gained 2% in value in the last 24 hours, is trading at $2,444 at the time of writing.