- Uniswap’s fees per core developer declined from $150 to $10 million
- The fall in UNI’s price could be a reason, and the fee switch might have further impacts
The “fees per developer” indicator for Uniswap [UNI]The most popular decentralized exchange (DEX), platform. Ethereum According to Total Value Locked, has been dropping dramatically lately. Could there be a decline in the number working developers?
Read Uniswap’s [UNI] Price Prediction 2023-2024
Uniswap declines in fees per core developer
At the height of the bull market in 2021, Uniswap earned approximately $150 million in “fees per core developer,” according to Data Published by Token Terminal, 11 December.
The bull market was at its peak last year. @Uniswap A ‘fees per Core Developer’ figure of $150M was used🤯
Momentan, it is approximately $10M
If the fee switch is activated, the’revenue per developer’ could be anywhere from 10-15% of this amount pic.twitter.com/jOwWctEwo0
— Token Terminal (@tokenterminal) December 11, 2022
In today’s market, however, the same statistic dropped to roughly $10 million. In other words, in just a few months, the base developer’s cost fell by more that half.
The “fees per core developer” metric measures how much revenue is made per core developer of a given coin. Investors interested in evaluating the financial health and potential risks associated with a cryptocurrency project may find this useful. It can also be used to determine the level of dedication and devotion of the development team.
A high “fees per core developer” ratio may indicate a strong and well-supported project. A low ratio could indicate that the project is struggling to raise enough money to pay its developers.
There are many possible causes for this decline
The devaluation UNI This was a significant factor that affected Uniswap‘s decreasing developer’s fee. All cryptocurrency prices have experienced a drop in the current market. UNI is no exception. A decline in value could result in less USD due to developer fees being originally priced in UNI.
According to the Uniswap development activity metric, the project’s activity dropped significantly around May, from over 500 to under three. The development activity was at 78.05 as of this writing and is showing signs of increasing.
Source: Santiment
The governing body of Uniswap will vote on whether to test a “fee switch” on a subset of pools in the next few days. In July 2022, there will be a proposal Uniswap had the intention to charge fees on a restricted number of liquidity pools.
The code allows a minimum fee of 10% for the selection pools. Fee moves will not affect users who use the protocol to swap. A small amount of current payments to liquidity providers will instead be retained.
If the fee switching proposal is approved and activated the core developer fee could be reduced to between 10% and 15% of its current level.
Analyzing UNI’s MVRV and active addresses
According to a review done of the Market Value To Realized Value (MVRV), UNI owners were in a loss at the date of writing. UNI has lost less that 1% in the last 30 days, with the MVRV ratio being 0.2.
Source: Santiment
A look at the active address metric over the past 30 days showed that UNI had seen a record number addresses. This number was over 46,000 at its peak, but it has fallen to 42,000 by the time this article was written.
UNI in a daily timeline
In the daily timeframe, it could be noticed that UNI’s rally, which began in late November, witnessed a pause. At the time this was written, the asset was trading at a price around $5.8.
Relative Strength Index, (RSI), also indicated a shift to a downward trend. The volume indicator showed that sellers were in control. Therefore, the RSI line was lower than the zero line.
Source: TradingView