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Uniswap News Today: Uniswap's Burn Event, Inspired by Bitcoin Halving, Triggers Explosive Bull Rally

Uniswap News Today: Uniswap's Burn Event, Inspired by Bitcoin Halving, Triggers Explosive Bull Rally

Bitget-RWA2025/11/11 22:46
By:Bitget-RWA

- Uniswap's UNI token surged 30% in 24 hours as the "UNIfication" governance overhaul introduced fee-switch mechanisms and token burns to create deflationary pressure. - The proposal, led by founder Hayden Adams, redirects trading fees to UNI holders and burns 100 million tokens, drawing comparisons to Bitcoin's halving events. - BitMEX co-founder Arthur Hayes invested $244,000 in UNI post-hiatus, amplifying market confidence while analysts predict potential $50 price targets if the proposal passes. - UNI'

Uniswap’s native asset,

, soared by more than 30% within a single day after the introduction of a governance revamp called "UNIfication" sparked renewed investor confidence. This surge was fueled by a proposed fee-switch and token burn, according to a . The initiative, led by Labs founder Hayden Adams, seeks to allocate trading fees to UNI holders and permanently remove tokens from circulation, introducing deflationary effects, as detailed in a . Observers have likened the proposal to Bitcoin’s halving, with some analysts forecasting a possible “parabolic” price surge, as mentioned in a .

BitMEX co-founder Arthur Hayes further fueled market excitement by acquiring $244,000 in UNI after a three-year break, according to a

. His purchase, coinciding with the proposal’s reveal, signals strong belief in Uniswap’s shifting economic structure. “This is more than just a token purchase—it’s an endorsement of DeFi’s future,” one analyst remarked, referencing Hayes’s history of spotting major crypto trends.

The UNIfication plan proposes activating protocol fees, burning 100 million UNI from the treasury, and incorporating Unichain sequencer fees into the burn process, as described in a

. These steps are intended to better align incentives throughout the platform, with Adams describing the initiative as a move toward making Uniswap the “go-to decentralized exchange for tokenized assets.” The proposal also introduces Protocol Fee Discount Auctions to enhance rewards for liquidity providers and aggregator hooks in Uniswap v4 to capture fees from outside liquidity, as reported in a .

The market responded quickly. UNI’s value climbed from $6.70 to nearly $10, marking a 74% increase over the week, according to a

. Trading activity surged to $3 billion, and UNI’s market cap exceeded $5.45 billion, as noted in a . CryptoQuant CEO Ki Young Ju estimated that if the burn mechanism is fully implemented, annual burns could reach $500 million, potentially causing a “supply shock” as large exchange-held UNI supplies dwindle, according to a .

Analysts remain cautiously optimistic. Tyrion Trades, a long-term UNI analyst, pointed out a multi-year ascending triangle pattern on the weekly chart, suggesting UNI could reach $50 if the proposal is approved, as referenced in a

. Altcoin Sherpa and others identify $12 as the next major resistance, with technical signals indicating ongoing , as highlighted in a . Still, some warn that short-term price swings are likely as the market processes the proposal’s potential impact.

The proposal also tackles governance issues. A 2024 arXiv paper observed that voting power is concentrated among major holders, but UNIfication introduces contractual protections to better align Uniswap Labs with the broader community, as reported in a

. This has sparked debate over whether the changes will broaden participation or further centralize authority.

With the proposal now undergoing a 22-day review period, as noted in a

, the crypto community is watching closely. If approved, the fee-switch could reshape DeFi revenue models, positioning UNI as a deflationary token with utility-based value. For now, Uniswap remains in the spotlight, as Hayes’s renewed involvement and Adams’s leadership challenge the current DeFi landscape.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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