UNI (Uniswap) up 4.35% in the last 24 hours, currently at $6.27

Gate News Bot Message, December 29th, according to CoinMarketCap data, as of press time, UNI (Uniswap) is trading at $6.27, up 4.35% in the past 24 hours, with a high of $6.52 and a low of $5.60. The 24-hour trading volume reached $444 million. The current market capitalization is approximately $4.58 billion, an increase of $191 million from yesterday.

Important recent news about UNI:

1️⃣ Proposal for protocol fee switch overwhelmingly approved, initiating 100 million UNI burn mechanism

The Uniswap protocol fee switch proposal, UNIfication, was passed with an absolute majority, with approximately 125 million UNI votes in favor and only 742 against, with community support nearing 100%. After a 2-day time lock period, Uniswap Labs has completed the burning of 100 million UNI tokens, valued at $596 million, and activated the fee switch mechanism for Uniswap v2 and v3 on the Ethereum mainnet. The activation of this mechanism signifies a shift of UNI from a purely governance token to a value-capturing asset. The protocol’s collected fees will be continuously used for token burns, directly reducing circulating supply and creating long-term deflation expectations.

2️⃣ Application and API interface fees reduced to zero, lowering user costs

Uniswap has lowered all interface fees for its applications and APIs to zero, further reducing the entry barrier and costs for ecosystem users. This move was launched simultaneously with the official activation of the protocol fee switch, indicating Uniswap’s consideration of balancing user experience optimization and value capture, which is beneficial for expanding ecosystem activity and protocol usage.

3️⃣ Market pre-pricing governance expectations, continuous net capital inflow supports price

From December 20th when voting started to December 29th, UNI’s price rapidly increased from about $5.30 to $6.27, a total increase of over 18%. The market had already priced in governance changes during the voting process, fully reflecting investors’ positive expectations for the deflation mechanism and fee capture. Spot funds showed continuous net inflows, indicating a high consensus among institutions and retail investors on the improvement of UNI’s fundamentals, providing solid capital support for the price increase.

This message is not investment advice. Investors should be aware of market volatility risks.