Uniswap Explodes Above $8.47 Amid the Announcement of New Governance Proposal

Uniswap (UNI) is currently trading at around $8.60, and the price has registered an increase of 22.97% in the past 24 hours. The market cap reached $5.42 billion. The trading volume surged past 500% to reach $3.44 billion. The UNI has gained more than 60% in the past week. The current rally is attributed to the Uniswap governance proposal announced jointly by Uniswap Foundation and Uniswap Labs. 

Uniswap CEO Hayden Adams Announces New Governance Proposal

Uniswap announced a new governance proposal for the platform. According to the Uniswap CEO, Hayden Adams post on X, the governance proposal stipulates protocol fees and aligns incentives across the Uniswap ecosystem. The key points of the proposal include turning on protocol fees and using them to burn UNI. Moreover, Unichain sequencer fees will also go toward the UNI burn. Additionally, the proposal envisions burning 100M UNI from the treasury. This would represent missed historical burns. 

The proposal also introduces Protocol Fee Discount Auctions and “aggregator hooks”. The Protocol Fee Discount Auctions is envisioned as a new way to improve LP outcomes and internalize MEV to the protocol, according to the post. While “aggregator hooks” are expected to turn Uniswap v4 into an on-chain aggregator. The post further notes that the 

Uniswap Labs is refocusing entirely on protocol growth and adoption. As a part of it, the platform will stop charging fees on its wallet, API, and interface.

The “UNification” proposal announced jointly on Monday by Uniswap Foundation and Uniswap Labs has sent the price surging. The suggestion of burning the token shifted the demand and supply dynamics in favour of the token. 

Uniswap ( UNI) Technical Analysis & Future Outlook

The UNI is currently trading above both the 10-day Exponential Moving Average (EMA) and 10-day Simple Moving Average (SMA). The 14-day Relative Strength Index (RSI) value of 67 suggests a strong bullish momentum. Both technical indicators and the market oscillators are sending a buy signal. 

If the token can hold the current level, the next resistance is at $10.037, and the price is projected to reach $10 to $12 in the upcoming week. A surge to $15 towards the end of the year can not be ruled out, given that the crypto market could see some tailwinds in the form of monetary policy or legislation, which is highly likely as the current administration in the U.S is following a pro-crypto policy. 

Final Thoughts on Uniswap 

The activation of the current proposal and the prevailing macro climate will decide the price of the UNI in the upcoming days. In fact, the new governance proposal is solidifying the long-term prospects of the token and the parent platform.

Although the broader crypto community largely remains optimistic, it is worth noting that the crypto market is highly volatile and dynamic. Thus, investors are advised to follow prudent financial practices to avoid any risks.