The post Uniswap’s fee switch goes live – Will UNI’s price head to $8.4 or $4.5? appeared on BitcoinEthereumNews.com.

Uniswap reached a structural milestone recently, but market sentiment has been more cautious rather than euphoric since.  On 26 December 2025, Uniswap’s UNIfication proposal passed with approximately 125 million UNI voting in favor. Only 742 UNI opposed the proposal, reflecting strong governance consensus. Following a two-day timelock, Uniswap Labs is set to burn 100 million UNI tokens. The proposal also activated protocol fees across Uniswap v2 and v3 on the Ethereum mainnet, alongside fee capture linked to Unichain activity. Hence, the question – Did this governance victory immediately translate into market confidence? UNIfication strengthens protocol fundamentals The proposal reinforced Uniswap’s governance maturity and long-term economic design. Large delegates dominated voting participation, highlighting coordinated institutional alignment. Updated service agreements and refreshed pool data further reduced operational uncertainty. Source: CoinRank Most importantly, the activation of protocol fees marked a shift towards sustainable value capture. This change is in line with Uniswap’s growth with recurring economic flows, rather than pure volume expansion. Are UNI supply dynamics turning deflationary? The immediate burn of 100 million UNI materially reduced circulating supply. Beyond the one-time burn, the proposal introduced ongoing fee-driven burns tied to protocol usage. This added a structural deflationary component to UNI’s tokenomics. However, markets appeared to price these changes cautiously. Traders may be awaiting clearer confirmation of how fee revenues ultimately benefit UNI holders. Uniswap maintains DEX volume leadership Despite price hesitation, Uniswap’s dominance across decentralized exchanges has remained intact. In fact, data revealed that Uniswap recorded $60.7 billion in monthly volume, leading all competitors by a wide margin. PancakeSwap and Curve followed at significantly lower levels. Source: X High activity and liquidity reinforced Uniswap’s position as Ethereum’s primary DEX. Fundamentally, the protocol’s competitive standing highlighted sustained resilience. Is UNI building momentum or completing a long-term top? UNI peaked near the $19-zone, before…

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Filed under: News - @ December 27, 2025 2:08 am