UNI, the native token of the Uniswap Protocol rose to $5.23, gaining roughly 5% on the day as trading volume jumped more than 80% to $359 million. The move coincided with confirmation that UNI’s long-awaited “UNIfication” governance proposal has entered its final voting phase.
Governance Vote Reprices UNI Supply
Uniswap founder Hayden Adams confirmed that voting runs from December 20 to December 25 on a proposal that would burn 100 million UNI from the treasury and activate protocol fee switches on Uniswap v2 and v3.
If approved, circulating supply would fall from about 630 million to roughly 530 million UNI, a meaningful reduction relative to current float.
More importantly for price, protocol and Unichain fees would be routed into an ongoing burn mechanism, directly linking Uniswap’s revenue generation to UNI supply reduction.
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With Uniswap having processed over $4 trillion in lifetime volume, the market response reflects a shift in how UNI Coin is valued: from a passive governance token toward a yield- and burn-linked asset. The volume spike supports that repricing, showing active positioning rather than thin liquidity drift.
Uniswap Price Reclaims $5 as Short-Term Trend Flips Up
Short-term charts show a decisive break from the prior consolidation range. UNI traded between $4.87 and $5.33 over the last 24 hours, with price pushing through the $5.00 area on expanding Bollinger Bands. On the 15-minute chart, price sits above the 20-period EMA, signaling short-term trend control by buyers.
Momentum indicators align with the move. RSI stands near 65, elevated but not extreme, suggesting strength without immediate exhaustion. MACD remains positive with a widening histogram, confirming bullish momentum following the sharp upside expansion. The earlier compression phase, visible before the breakout, resolved higher, which explains the speed of the move rather than gradual grinding price action.
On-chain data also shows that exchange reserves sit near 87.2 million UNI, still elevated relative to earlier cycles. While price has rebounded, available supply on exchanges remains sufficient to cap runaway moves unless demand accelerates further.
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