Uniswap’s native token UNI witnessed a strong rally on Friday, February 23. The major catalyst behind the 70% Uniswap price rally is the decentralized exchange changing the fee mechanism to benefit those staking the UNI tokens.

The proposal advocates for the introduction of a fee-sharing system that incentivizes UNI holders to stake and delegate their tokens, thereby enhancing involvement and activity within the governance ecosystem.

Uniswap Price Rally Ignites DeFi Mania

On-chain data provider Santiment highlights a shift in focus from the AI craze to the burgeoning decentralized finance (DeFi) sector.

According to Santiment, assets facilitating decentralized lending, borrowing, and exchange of cryptocurrencies, such as $UNI, $COMP, $SUSHI, and $AAVE, have experienced notable increases in value. This surge in value follows a pivotal proposal within the Uniswap ecosystem, which aims to reward staked and delegated token holders.

The rising prominence of DeFi protocols underscores a growing interest among investors in decentralized financial solutions, diverting attention from the previously hyped AI sector.

Courtesy: Santiment

The trading volumes across other DeFi protocols have also shot up significantly. For e.g. the COMP price is up with trading volumes shooting up 411% to more than $175 million. Similarly, the SushiSwap (SUSHI) price has surged by 27% while the trading volumes have shot up by a staggering 153%.

Some crypto market analysts also believe that other DeFi protocols like Blur and Lido Finance could go down the way with the Uniswap fee share proposal.

$UNI Fee Share proposal will be an interesting one to follow. If it succeeds without too much regulatory issues, it might see other tokens follow.

First ones coming to mind would be $BLUR & $LDO.
Massive revenues, no fee shares yet.

— Daan Crypto Trades (@DaanCrypto) February 23, 2024

AI Coins Take A Dive

Recent market trends reveal a significant surge in decentralized finance (DeFi) assets, accompanied by a corresponding decline in the value of AI coins, signaling a notable capital rotation within the cryptocurrency market.

Analysts observe a clear shift in investor sentiment as DeFi protocols experience heightened interest, leading to increased investment flows. Conversely, assets associated with artificial intelligence (AI) are witnessing a downturn in value, indicative of a redistribution of capital among investors. some of the top AI coins like Worldcoin (WLD), Render (RNDR), the Graph (GRT), are trading in the red as of press time.

The post Uniswap’s 70% Price Rally Helps DeFi Steal Spotlight from AI Tokens appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am