Key takeaways
- Uniswap’s UNI is the best performer among the top 30 cryptocurrencies by market capitalization, rising about 20% in 24 hours.
- The rally follows a “UNIfication” governance proposal filed by Uniswap Labs and the Uniswap Foundation on Monday.
UNI surges on UNIfication proposal
UNI, the native token of the decentralized exchange Uniswap, is the strongest performer among the top 30 cryptocurrencies by market cap. The token climbed roughly 20% over the past 24 hours and is trading above $8.50.
It reached an intraday high of $10.20 on Monday before pulling back slightly. The surge followed the submission of a governance proposal dubbed “UNIfication” by Uniswap Labs and the Uniswap Foundation.
The proposal, co-authored by protocol founder Hayden Adams, Uniswap Foundation executive director Devin Walsh and Uniswap researcher Kenneth Ng, would reduce the circulating supply of UNI in part by implementing a token burn mechanism.
If approved, the change would mark a significant shift for Uniswap and its token holders. The proposal also calls for activating a so-called “fee switch,” which would redirect a portion of trading fees—previously distributed to liquidity providers—toward the protocol’s treasury or UNI holders.
Under the plan, fees earned by the Uniswap DEX and the Unichain sequencer would be used to burn tokens. In addition, the proposal would immediately burn 100 million UNI tokens currently held in Uniswap’s treasury.
The proposal would also prevent Uniswap Labs from collecting fees from its interface, wallet and API. However, details remain unclear about exactly what percentage of fees would be allocated to token burns.
UNI could fall to $7.20 if bullish momentum eases
The 4-hour UNI/USD chart shows a bullish but inefficient move after Monday’s UNIfication news-driven pump. The token is currently retracing and may gain efficiency in the short term.
Technical indicators remain bullish: the RSI sits near 73, suggesting UNI could soon enter overbought territory, while MACD lines remain in positive territory, signaling a continued bullish bias.
If the retracement continues, UNI could decline to around $7.20 as the market seeks to normalise price action. In a deeper pullback, bulls would likely defend support near $6.60.
If the bullish trend resumes, UNI could reclaim the $10.20 high reached on Monday within the coming hours or days.