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Home Cryptocurrency

Uniswap Price Jumps 28% On $842M Token Burn Plan

by FeeOnlyNews.com
7 months ago
in Cryptocurrency
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Uniswap Price Jumps 28% On 2M Token Burn Plan
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The Uniswap price soared 28% over the past 24 hours to trade at $8.42 as of 2:29 a.m. EST on trading volume that soared 584% to $3.3 billion.

This comes as Uniswap Labs with Uniswap Foundation pushed a new proposal, UNIfication, which aims to reshape the decentralized exchange’s structure and future direction.

The governance proposal submitted by Uniswap founder Hayden Adams seeks to activate protocol fees, introduce a UNI-burning mechanism, and realign incentives across the ecosystem.

Today, I’m incredibly excited to make my first proposal to Uniswap governance on behalf of @Uniswap alongside @devinawalsh and @nkennethk

This proposal turns on protocol fees and aligns incentives across the Uniswap ecosystem

Uniswap has been my passion and singular focus for… pic.twitter.com/Ee9bKDric5

— Hayden Adams 🦄 (@haydenzadams) November 10, 2025

The announcement boosted investor confidence, with the UNI token surging to a two-month high. According to the proposal, at the launch of UNIfication, fees will apply to Uniswap v2 and major v3 pools on Ethereum.

For v2, liquidity providers (LPs) will earn 0.25% per trade, with 0.05% allocated to the protocol. For v3, governance will collect one-fourth or one-sixth of the liquidity provider fees, based on the fee tier.

The proposal calls for a burn of 100 million UNI, worth $842 million at current prices, from the Uniswap treasury as a retroactive burn. This represents the amount that might have been burned if fees had been active since the protocol’s start.

Uniswap could go parabolic if the fee switch is activated.

Even just counting v2 and v3, with $1T in YTD volume, that’s about $500M in annual burns if volume holds.

Exchanges hold $830M, so even with unlocks, a supply shock seems inevitable. Correct me if I’m wrong. https://t.co/39QjJsw9uQ pic.twitter.com/3FQzAmuOP3

— Ki Young Ju (@ki_young_ju) November 11, 2025

The proposal brings in permanency into the growth funding model, as from 2026 the firm governance would allocate a 20 million UNI yearly budget.

The proposal, if approved by the DAO, would set a new precedent for decentralized decision-making. 

Can the proposal still push the price of UNI higher?

Uniswap Price On A Recovery, Aims For A Rally Over Key Resistances

The UNI price, after bottoming in May within the $4.79 support, went through a sustained surge to clear major resistances.

The surge allowed the Uniswap price to hit a local high of $12.29, as indicated on the Fibonacci retracement levels.

After hitting this resistance, the price of UNI went through a retracement, trading within the confines of a falling channel pattern, as the bears took advantage of the death cross that had earlier formed on the $8.28 level.

However, after hitting the $4.79 support again, and as a result of the governance proposal, the price of the Uniswap token has since recovered above the upper boundary of the falling channel. The latest 3-day candle is soaring above major resistance on the Fibonacci retracement level.

As a result of the propelled prices, UNI crossed above both the 50-day and 200-day Simple Moving Averages (SMAs) on the 3-day timeframe, cementing the overall bullish outlook, but has since settled slightly below the price.

Meanwhile, the 50-day SMA ($8.488) is closing in on the 200-day SMA ($8.611), which could result in a golden cross. This could further allow the bulls to push the price even higher.

The Relative Strength Index (RSI) also supports the bullish rally, with the RSI recovering below the oversold levels, to now cross above the 50-midline level, currently at 55.82, as momentum picks up.

Moreover, the Moving Average Convergence Divergence (MACD) has turned positive, with the blue MACD line now crossing above the orange signal line, but remains under the zero line. This supports the rally while cautioning traders of minimal bullish signals.

Uniswap Price Chart Analysis Source: TradingView

UNI Price Prediction: Bulls Eye $10 And Above

According to the UNI/USD chart analysis on the 3-day timeframe, all indicators, including the RSI and the MACD lines, point to a sustained bullish rally.

If the UNI price crosses above the 0.382 Fibonacci level at $9.41, the next possible prices are above the $10 level, with the next key support level at the 0.236 Fib level at $10.52 and the 0 Fib level at $12.29.

Conversely, if the current rally is short-lived and sellers start to take profits, the Uniswap price could retrace back to the $0.618 Fib level at $7.66 or the 0.786 Fib level at $6.4 within the boundaries of the falling channel. 

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