‘UNI Holders Can Earn a Very Large Revenue in February 2021’- Analyst!
UNI is among the popular DeFi tokens which jumped into the wallets of the Uniswap customers for free. Well, that was the biggest surprise of the lifetime for the platform customers. However, the icing on the cake faded very soon as the token plunged drastically within no time.
But one of the analysts has predicted a major bull run for the UNI token and also the Uniswap exchange in the coming days.
UNI – The Single Cheapest Asset in Future
A well-known crypto asset manager, Jeff Dorman, CIO of an investment management firm ARCA, has presented a theory explaining how UNI is and would remain a cheap asset. The ex-COO of Harvest Exchange, Wall Street, said UNI has said that UNI’s bull run is pretty clear despite the decline in DeFi Space.
In a series of tweet, Dorman termed Uniswap as the ‘uncontested leader’ of the DeFi space.
“ Uniswap is the clear leader in DEX trading. Like “ETH vs smart contract protocols”, there’s not even a close second to $UNI in DEX trading.”
He further said the Uniswap will soon integrate a model where UNI holders will obtain a part of trading fees generated by the platform. Explaining how UNI token is and would remain the cheapest asset, Dorman wrote,
“Expected annual earning for Uniswap: $380 mm
(based on $360mm avg daily trade volume @0.30% fee)
→ $66mm distributed to UNI token holders after the fee switch (1/6th of fees)
→ 13% divd yield
→ 1.30x Price/Sales
→ 7.5x Price to distributed CFs
That’s really cheap!”
Dorman said that as the market participants start giving the same benefit of the doubt that they give to ETH in terms of future value accumulation, then UNI token will be considered as the cheapest asset.
Why Do People Fear Owning UNI?
Conversely, Dorman also listed the possible reasons for the people not holding UNI token at present.
However, he also said that only argument 1 stands strong but the other is only short-sighted.
UNI Misinterpreted as ‘Governance Token’
According to Jeff Dorman, UNI is among the projects in the digital space that have real use cases. He said that UNI is more than just a governance token, a pass-thru token, where the revenue will be passed through the token.
He made a big revelation that the UNI holders will earn a very large revenue in February 2021. Hence UNI is such a token through which Uniswap generates revenues.
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