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Home Articles Uniswap Price Reacts to $596M UNI Burn as Market Tests Key Levels

Uniswap Price Reacts to $596M UNI Burn as Market Tests Key Levels

Joseph Alalade
Joseph Alalade
Joseph Alalade
Author:
Joseph Alalade
News Lead and Editor
Joseph is a content writer and editor who has actively participated in crypto for over 6 years. He enjoys educating others about Web3 and covering its updates, regulatory developments, and exciting stories.
Updated: December 29th, 2025

Uniswap DAO has executed a one-time burn of 100 million UNI (~$596M), removing roughly 1.5% of supply from circulation. UNI is currently trading around $6.2, trading sideways in the last 24 hours, with elevated volume. The market is now weighing reduced supply, fee redirection toward burn, and visible technical resistance levels.

Uniswap Labs confirmed that “UNIfication has officially been executed on-chain,” detailing that Labs’ interface fees are now set to zero, 100M UNI has been burned from the treasury, fees are active on v2 and selected v3 pools on mainnet, and Unichain fees will flow to UNI burn after data costs. This links protocol activity directly to ongoing deflation.

The DAO-approved burn removed ~1.5% of supply, a meaningful one-time reduction. That means $596 million of Uniswap is gone permanently, with no reversals or unlocks. Another unique aspect of this vote is that it passed with 99.9% support, highlighting broad tokenholder alignment.

Analyst Tom Tucker described the change as “a deflationary flywheel,” noting 100M UNI tokens burned, treasury falling from $2.1B to $1.6B, web fees set to zero, and protocol fees now funding burns. The result is that the revenue now supports token reduction rather than only liquidity providers.

The fee-switch also redirects protocol fees toward future burns, with estimates suggesting potential annual burns near 10M UNI depending on activity. This is good for the DeFi token because when the number of tokens is reduced, and fewer are available, prices usually rise.

At the time of writing, UNI currently trades at $6.2. Meanwhile, analyst @CW8900 highlighted the next major resistance, stating, “The next sell wall for $UNI exists at $8.05.” This level anchors near-term upside expectations and is the key resistance to watch for now.

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Joseph Alalade
News Lead and Editor
Joseph is a content writer and editor who has actively participated in crypto for over 6 years. He enjoys educating others about Web3 and covering its updates, regulatory developments, and exciting stories.