UNI 24-hour increase of 5.05%: Dual drivers of deflation expectations and institutional endorsement

UNI has increased by 5.05% in the past 24 hours, trading at $6.21, with its market capitalization rising to $3.947 billion. Behind this surge is not only a short-term technical rebound but also a substantial improvement in Uniswap’s fundamentals. From the implementation of the fee conversion proposal to the advancement of institutional ETF applications, UNI is gaining increasing market recognition.

Price Performance and Market Response

Short-term gains are evident, but the medium-term trend warrants more attention

UNI’s performance is not limited to the 5.05% increase today. Over a longer time frame, it has risen 4.20% in the past 7 days and 10.93% over the past 30 days. This indicates that UNI’s upward trend is not a one-day event but supported by continuous fundamental improvements.

The 24-hour trading volume reached $529 million, with market cap increasing by $190 million from yesterday, reflecting active market participation. From a high of $6.34 to a low of $5.62, the fluctuation range shows that the supply and demand imbalance around $5.50 is being maintained, laying a foundation for further rebounds.

Key Price Levels and Technical Signals

On the technical indicators, MFI and MACD are gradually turning bullish, indicating improving short-term momentum. However, a genuine breakout above $6.25 requires volume confirmation.

Fundamental Improvements: From Policy to Institutional Recognition

Deflation expectations become the core driver

On December 26, the Uniswap community officially approved the fee conversion proposal, marking a key turning point in the protocol’s fundamentals. According to the proposal, Uniswap will burn approximately 100 million UNI tokens (worth about $591 million at the time), and a portion of future protocol fees will also be used for ongoing token burns.

This deflationary mechanism directly changes the narrative around UNI’s value. From being a purely governance token, it has evolved into an asset with tangible deflation expectations. This provides substantial support for medium- to long-term price outlooks.

Industry position is solid, revenue model is sustainable

As the world’s largest decentralized exchange, Uniswap generated over $1 billion in total fees in 2025, ranking third in the industry. This data is significant because it reflects real and sustainable revenue-generating capacity.

Unlike some projects, Uniswap’s fee revenue model is more rational: a portion of swap fees goes to the protocol, most directly to LPs, rather than inflating revenue figures through token issuance. This design aligns better with the protocol’s long-term development goals and is more likely to earn market trust.

Institutional-level product innovation enhances recognition

Bitwise has submitted applications for 11 cryptocurrency ETFs to the US SEC, including the Bitwise UNI Strategy ETF. This ETF’s investment strategy involves allocating 60% of assets directly into UNI, 40% into ETPs that invest in the token, and possibly using derivatives to gain exposure.

This indicates that UNI is now regarded by traditional financial institutions as a mainstream crypto asset. Once approved, this will open a new institutional capital channel for UNI.

Market Impact Assessment

The significance of this rally lies in reflecting market recognition of Uniswap’s fundamental improvements. Deflation expectations, institutional acceptance, and stable revenue capabilities collectively create a structural advantage for UNI.

In the short term, upward breakthroughs still depend on overall market conditions and trading volume. But from a longer-term perspective, Uniswap’s fundamentals are now more solidly supported.

Summary

This wave of UNI’s price increase is not an isolated event but the result of multiple factors working together. The deflationary outlook driven by the fee conversion proposal, the progress of institutional ETF applications, a stable industry position, and revenue streams all underpin UNI’s price.

From a technical standpoint, signs of improvement are already visible in the short term, but a true breakout requires market environment cooperation. Key resistance zones to watch are between $6.25 and $6.55, and whether the support below $5.30 can hold. With fundamentals continuously improving, Uniswap has built a structural advantage, but market conditions remain the decisive factor.