Uniswap Faces Valuation Challenges Amid Fee Switch Activation

According to BlockBeats, Dragonfly partner Omar Kanji has highlighted concerns regarding Uniswap's current valuation following the activation of its fee switch. The decentralized exchange is now valued at approximately 240 times its annualized fees, equating to a fully diluted valuation (FDV) of $5.4 billion against $23 million in annualized fees. Kanji also pointed out that with the planned expenditure of 20 million UNI tokens this year, valued at $6.16 each, the protocol is expected to incur a loss of around $100 million. This financial outlook raises questions about the sustainability of Uniswap's current valuation model.