Uniswap Price News: UNIfication Lifts UNI – Can It Reverse The Downtrend?

Uniswap (UNI) has gone up by nearly 12% in the past 7 days as the protocol’s “fee switch” proposal will likely pass in a few days.

A total of 114.8 million “yes” votes have been received already, according to Uniswap’s official governance page, exceeding the required quorum by more than three times.

Voting Status UNIfication Proposal – Source: Uniswap

After being passed, a total of 100 million UNI tokens from the DAO’s treasury will be burned immediately to reduce the circulating supply.

In addition, the protocol will now collect trading fees in UNI and burn them progressively, which should cause a supply shock down the road and impact the price of the token positively in the long term.

Uniswap Produces Over $600M in Fees Per Year

According to data from DeFi Llama, Uniswap’s annualized fees currently sit at $646 million. Users typically pay 0.3% of the value of their swap to the protocol. All of these funds will now be used toward acquiring and burning UNI automatically.

Uniswap’s Monthly Fees – Source: DeFi Llama

As the largest decentralized exchange (DEX) in the Ethereum network by total value locked (TVL) and the 11th largest DeFi protocol, this proposal could have a huge impact on Uniswap’s tokenomics.

At the time of writing, the protocol’s market cap sits at $3.6 billion. Its annual fees yield around 17% of that market value. Once the token burn program is launched, this could result in the progressive reduction of UNI’s market cap.

An upward movement seems inevitable at this point, especially as users will now, either directly or indirectly, have to use UNI to execute swaps through its various platforms.

The voting proceedings end on December 25. A reversal of the current trend is nearly impossible at this point, especially as 100% of active voters have already made up their minds.

UNI Hits Resistance at $6 But RSI Says “Buy”

Despite the positive impact that this proposal could have on UNI’s economics, the price has now declined for three days in a row after hitting a key structural level at around $6.

UNI/USD Daily Chart (Kraken) – Source: TradingView

A descending triangle has formed as a result of the latest price action. The price seems to be compressing around the $5 level, which might be the market’s appraised fair value for the token for the time being.

However, if we get a decisive breakout above $6, we could expect a strong move ahead, especially if market sentiment improves in 2026.

The UNIfication proposal is not a minor technical overhaul. It could have massive financial implications for Uniswap’s futures, and the market is choosing to ignore it due to the latest wave of bearish momentum that has hit.

A move above the 200-day exponential moving average (EMA) will likely result in a retest of the levels we saw recently at around $12. This means a 100%+ upside potential for those with the stomach to buy at today’s price.

The Relative Strength Index (RSI) sent a decisive buy signal on December 19 as it rose above the 14-day moving average. Despite the latest retreat, the oscillator is still sitting above the mid-line.

This means that positive momentum is accelerating. Is Uniswap about to catch a big wave to new highs? Fundamentals seem to support that scenario.