The Uniswap token (UNI) traded at $5.90 on December 26, 2025, as the cryptocurrency community pivots its focus toward an impactful governance proposal. Following the adoption of a crucial initiative, the market has shown signs of upward momentum, further fueled by a massive token burn that could elevate prices significantly.
Uniswap Approves ‘UNIfication’ Proposal
The Uniswap community has overwhelmingly endorsed a transformative governance proposal dubbed “UNIfication.” This initiative was co-presented by Uniswap Labs and the Uniswap Foundation and garnered nearly unanimous support during the governance voting process.
During several days of voting, over 125 million UNI votes were cast in favor of the proposal, significantly outnumbering a mere handful of opponents and easily surpassing the quorum required for approval.
This proposal activates long-dormant protocol fees. As the leading decentralized exchange (DEX) in the cryptocurrency sphere, Uniswap handles approximately $2 billion in daily transaction volume, translating into hundreds of millions in annualized fees according to data from platforms like DeFiLlama. Previously, these fees were entirely directed to liquidity providers, leaving UNI holders with only governing rights and no direct connection to exchange performance.
Moving forward, a portion of these fees will now flow into an on-chain system specifically designed to reduce the supply of tokens through burns. This creates a direct correlation: increased platform usage will lead to more tokens being removed from circulation, thereby potentially supporting long-term price appreciation.
Additionally, the approval initiates a unique retroactive burn of 100 million UNI tokens from the treasury. Valued at approximately $590 million based on recent market prices, this burn offsets the potential fees that could have accumulated since Uniswap’s inception in 2018, had the changes been implemented sooner. These new measures will take effect following a brief governance lock-up period, reinforcing Uniswap’s shift toward greater sustainability and alignment between protocol growth and token holders.
UNI Price Indicates Reversal Around $5.90
Following the proposal’s approval, the price of UNI has exhibited signs of gaining momentum, trading around the $5.90 mark as markets digest the deflationary implications of the initiative.
Technical indicators suggest a potential bullish reversal after a phase of consolidation. The Relative Strength Index (RSI) currently hovers above the neutral territory at near 53, showing a positive incline and indicating no immediate overbought or oversold conditions. This positioning allows for significant upward movement without the immediate risk of exhaustion, suggesting that buyers could engage aggressively in light of the positive developments.
More encouragingly, the Moving Average Convergence Divergence (MACD) has recently shown a positive histogram reading, reflecting increasing bullish momentum and providing a classic framework for trend reversals.
Analysts note that sustained momentum at this level could propel UNI to short-term targets, with the $6.50 to $6.60 range appearing pivotal for bullish traders if volume increases. The combination of these indicators, along with the fundamental catalyst of fee activation and supply reduction, supports an optimistic price outlook. As protocol activity is directly tied to token burns, UNI seems poised to regain its strength in the upcoming months.
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