Uniswap’s Fee Switch Is Live—But Early Data Is Already Tearing Analysts Apart
Uniswap’s long-anticipated fee switch has gone live. However, it has failed to deliver immediate clarity on UNI’s long-term value capture.
Early on-chain data has sparked a sharp debate over whether the market is drawing conclusions far too soon or uncovering structural limitations in the protocol’s burn mechanics.
Is Uniswap’s Fee Switch Already Failing—or Is the Market Reading It Wrong?Initial estimates from on-chain analysts suggest that Uniswap’s newly activated protocol fees may be generating as little as $30,000 per day in hard assets. This figure falls well short of the incentive levels proposed under recent governance plans.
That early reading has raised uncomfortable questions about whether UNI emissions could outweigh fee-driven burns, at least in the short term.
“Analyzing current levels, UNI incentives are expected to exceed burns from the fee switch,” wrote one user, adding that the data invites reflection on how different the picture might look had fees been active historically.
The warning followed a detailed breakdown by on-chain research, which initially estimated roughly $95,000 in daily Ethereum-only protocol revenue under an optimistic scenario.
Quick check in on the the @Uniswap fee switch.
It is live, and my estimate on protocol revenue for the past ~24 hours is… $95k (Ethereum only)
Or it would have been if I had not dug a bit deeper…