Crypto analyst Jamie Coutts says Uniswap’s (UNI) recent proposal to alter its fee structure could be a pivotal moment for digital assets.
Uniswap recently put forth a proposal that would reward traders who have staked and delegated UNI with portions of the protocol’s revenue.
[adinserter block="1"]With Uniswap’s revenue on par with some stock markets in traditional finance, Coutts says the DEX can be an example of how profitable the digital asset industry can be and could boost UNI into an outperformance of Bitcoin (BTC).
“Uniswap ‘fee switch’ could be a pivotal moment for crypto assets in this cycle as it demonstrates just how cashflow generative some of these open finance protocols have become. Not to mention a big FU to the SEC (U.S. Securities and Exchange Commission). UNI token has rallied 50% since the news.
This is a $10 billion market cap asset on track to do $760 million in fee revenue this year, which is the equivalent of the 2023 revenues for the 13th and 14th largest global exchanges (Australian Securities Exchange and Singapore Exchange).
It trades on a 14x P/S (price-to-sales) multiple, which isn’t necessarily ‘cheap’ by traditional standards but is the same multiple as the CME (Chicago Mercantile Exchange) with one difference (of many) – Uniswap has an effective workforce of around 40 developers, which means it collects around $18.75 million in sales per employee versus the CME at $1.45 million per employee.
On the chart, the breakout from the base pattern is clear, but on the relative chart versus Bitcoin, it still has yet to prove it is in the small and select camp of cryptos that could outperform the king asset this year.”
At time of writing, UNI is trading for $12.39.
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