UNI closed at 7.627 on Binance’s daily chart on November 4, then at 4.888 on the 14th—a 36% drop in ten days. On the 14th alone, it plunged from 5.748 to 4.888, touching an intraday low of 4.619 and returning to its late-August levels.
I looked around, and nothing happened to Uniswap itself. No hack, no unlock, no negative announcement—it was simply sold off along with the broader market, only much harder than BTC. The Fear and Greed Index even fell to 10.
Looking at it the other way around, on-chain: Uniswap’s daily fees on DefiLlama were just $1 million on November 7, then $2.49 million on the 14th—the week’s highest. The total over the past 30 days was about $72.94 million. The more turbulent the market, the more people reshuffle their positions, and the busier DEXs get.
My take is that the protocol’s ability to generate revenue hasn’t weakened; what’s weakened is sentiment around the token price. But higher fees don’t necessarily mean the token price has to rise. In September, it climbed from a little over $3 in August to $10.22, largely on discussions about the fee switch. When sentiment faded, the price fell back too. Now it’s rebounded to $5.135, so it’s caught its breath a bit.
Do you think DEX revenue can support the token price, or do we have to wait for the fee switch to actually be implemented?