The governance token of the Uniswap decentralized finance platform, UNI, has experienced a significant surge, climbing 46% to surpass the $17 mark, a price point not observed since January 2022.
This upward movement in UNI’s price is matched by a 120% increase in its trading volume within the past 24 hours, reaching $1.18 billion. Additionally, its market valuation has seen a 44% rise over the previous week, positioning it as the 16th largest digital currency by market cap at $9.4 billion.
The catalyst for this impressive performance is a proposed update by the Uniswap Foundation aimed at revising the platform’s governance structure to facilitate fee redistribution, thereby bolstering community engagement. The focal point of this proposal is to allocate protocol fees to UNI token holders.
Announced via a February 23 post on X, the Uniswap Foundation outlined that this update intends to incentivize UNI holders who actively stake and delegate their tokens.
🔈 New Governance Proposal Posted 🔈
UF Governance Lead @eek637 just posted a proposal to upgrade Uniswap Protocol's governance system. Specifically, this upgrade would reward UNI holders who have staked and delegated their tokens.
— Uniswap Foundation (@UniswapFND) February 23, 2024
The proposed adjustments seek to modify the ownership of the UniswapV3Factory contract on the mainnet, enabling a more decentralized and automated collection of protocol fees.
The Uniswap community has expressed positive reception towards these governance enhancements, viewing them as a move towards granting UNI token holders a more pronounced role in the platform’s decision-making processes.
UF's proposal to upgrade Uniswap Protocol Governance has garnered a lot of support from both delegates and the broader community.
The next step is a Snapshot poll to gauge community sentiment. The poll will run for five days here: https://t.co/Nlg14bJuIy https://t.co/92G1CqjjpO
— Uniswap Foundation (@UniswapFND) March 1, 2024
The voting process for this proposal, conducted through Snapshot, began on March 1 and is scheduled to conclude on March 7.
Feedback from the Uniswap Foundation highlights substantial backing from the community for this proposal, with 55 million UNI votes in unanimous support as of 11:00 pm ET.
Market Dynamics and Community Response
Recent analytics from Lookonchain indicate significant whale activity, with a purchase exceeding $12.5 million in UNI tokens within a 48-hour timeframe.
Giant Whales is accumulating $ARKM and $UNI!
Whale"0x3794" withdrew 1M $UNI($12.5M) from #Binance in the past 2 days.https://t.co/KZzZGG4u0D
Whale"0x81DA" withdrew 4M $ARKM($9.68M) from #Binance in the past 24 hours.https://t.co/SfylmkAAJq pic.twitter.com/VR9dMy7xrd
— Lookonchain (@lookonchain) March 3, 2024
Further insights from Token Terminal reveal a notable uptick in Uniswap’s network utilization. The platform’s daily user count has escalated from approximately 75,000 in October 2023 to 168,106 on March 2, indicating a growing interest in the Uniswap ecosystem and a corresponding increase in demand for UNI tokens.
Daily avg trading volume per user on @Uniswap ~$10.9k pic.twitter.com/k4DKPvhOGG
— Token Terminal (@tokenterminal) March 3, 2024
The price of UNI has seen an extraordinary rally, soaring over 143% from a low of $7 on Feb. 23 to an intraday peak of $17.03 on March 6, based on data from TradingView.
The Relative Strength Index (RSI) indicates a bullish trend, with a reading of 87 suggesting a strong buying interest. Market participants may aim to push UNI’s price towards the recent high of $17 as a precursor to challenging the $20 resistance level.
However, the RSI also signals potential overbought conditions for UNI, hinting at the likelihood of a market correction that could temper the ongoing bullish momentum.
