Key Insights
UNI token climbed 32% from monthly lows as the Unification vote gained majority support and neared its quorum requirement.
The proposed 100 million UNI token burn is expected to lower supply and introduce continued burn mechanisms tied to network fees.
UNI broke key resistance levels, with technical indicators suggesting potential for further gains toward $7.81.
The UNI token extended its rally for a third consecutive day, reaching $6.35—its highest level since November 20—as Uniswap’s ongoing Unification vote gained significant support. The proposal, which aims to incinerate 100 million UNI tokens, has received overwhelming community approval, pushing trading sentiment higher.
At the time of reporting, over 34.1 million UNI tokens have been cast in favor of the Unification proposal, with only 740 against it. With the quorum threshold set at 40 million, the vote appears close to being finalized. The move signals the beginning of a major supply shift, as the 100 million tokens slated for destruction represent the amount that would have been burned since inception if the burn mechanism had existed earlier.
Supply Decline Adds to Upward Momentum
Market dynamics reflect growing confidence among token holders. The supply of UNI on exchanges has dropped from 683 million to 664.39 million over the past month. This trend suggests that investors are moving tokens off exchanges, often interpreted as a sign of long-term holding behavior. Whale accumulation has also ticked upward slightly, rising from 8.1 million to 8.22 million tokens this month.
Source: TradingView
Beyond the upcoming token incineration, the proposal outlines a long-term structure that will continue to reduce UNI’s circulating supply. A significant portion of network fees will now be burned periodically. The upgrade will also introduce aggregation hooks, enabling Uniswap v4 to function as an on-chain aggregator for external liquidity while collecting fees.
UNI Price Technical Indicators Turn Positive
From a technical perspective, the UNI token rebounded from a monthly low of $4.8720 on December 18 to its current level of $6.33. It formed a double-bottom pattern with a neckline near $10.2, a structure often seen as bullish. The token also broke out of a falling wedge and surpassed the 50-day exponential moving average. Additionally, the Relative Strength Index climbed to 60, supporting the likelihood of continued momentum toward the $7.81 resistance level.
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