Lowering fees in crypto markets is making a few players more powerful, not less.

We usually think that lower fees lead to more competition and more distributed volume across different pools. But when Uniswap introduced a tiny 0.01% fee tier, it triggered a 'winner-take-most' effect that consolidated price discovery into a single pool. That one pool now handles 67% of the price discovery for Ethereum compared to a massive exchange like Binance. Instead of a diverse ecosystem, we’ve created a single point of failure and dominance. For the average trader, it means the 'decentralized' future is becoming just as concentrated as the old system, just with lower overhead.