Uniswap Price Plunges Amid Surge in Fees and Supply Pressure

Uniswap's (UNI) price has been experiencing a downward trend in recent days, with the asset currently trading at $5.72, down 7.6% on the day.

The market is under pressure from recent sellers, as UNI sits below its short- and medium-term moving averages but remains above its longer-term average.

This comes amidst a surge in Uniswap V3 protocol fees, which rose by 24.85% over the past 24 hours and surged 130.96% during the last 30 days, reflecting increased platform activity.

The implementation of a fee switch mechanism that burns an estimated $90 million in UNI annually has tightened supply dynamics, but price action has remained under broader selling pressure.