Why did the price of UNI go up?
Uniswap (UNI) increased by 2.07% in the last 24 hours, which is slightly less than the overall crypto market’s 3.03% gain. This price rise came alongside a 28.3% jump in UNI’s trading volume, showing renewed interest in the token. The main factors behind this move are:
- Positive regulatory developments – The Commodity Futures Trading Commission (CFTC) is taking steps that favor crypto, and Uniswap is now part of important policy discussions.
- Technical recovery – UNI’s price bounced back after being oversold, supported by key technical levels.
- Shift in DeFi activity – Increased trading on decentralized exchanges (DEXs) and more stablecoin liquidity during the current altcoin season.
Deep Dive
1. Positive Regulatory Developments (Good for UNI)
What happened:
The CFTC recently approved Crypto.com’s derivatives products and expanded its Digital Asset Markets Subcommittee by adding Katherine Minarik from Uniswap Labs (CryptoNews). This shows growing acceptance of decentralized finance (DeFi) by regulators.
Why it matters:
These regulatory moves lower the risks for UNI and confirm its important role in the future of crypto. The CFTC’s focus on stablecoins as acceptable collateral could increase demand for Uniswap’s liquidity pools, which are essential for trading.
What to watch:
Keep an eye on the timeline for the GENIUS Act, which will regulate stablecoins, and the CFTC’s policy plans for late 2025.
2. Technical Recovery (Mixed Signals)
What happened:
UNI’s price bounced after testing a key Fibonacci retracement level at $7.97. The Relative Strength Index (RSI), a measure of whether an asset is overbought or oversold, dropped to 28.13 on September 28, indicating oversold conditions that attracted buyers.
Why it matters:
Short-term traders took advantage of this dip, but UNI’s price is still below important moving averages (the 7-day average is $7.81, while UNI is at $7.70). To confirm a sustained upward trend, UNI needs to close above $7.83, which is the 50% Fibonacci retracement level.
3. DeFi Activity Shift & Stablecoin Growth (Positive for UNI)
What happened:
Stablecoin-focused blockchain networks like Plasma are gaining popularity. Uniswap has committed $250,000 to encourage liquidity pools for USDT and ETH trading pairs on Plasma (Uniswap Governance).
Why it matters:
Stablecoins now make up 70% of trading volume on decentralized exchanges. By integrating with Plasma, Uniswap is well-positioned to meet growing institutional demand for compliant DeFi products, which could increase fees earned by UNI holders.
Conclusion
UNI’s recent price increase reflects both technical buying and optimism about its regulatory outlook. However, the token is still 21% below its September peak. The expansion into Plasma and Uniswap’s role in shaping policy provide strong fundamental support. For a clear trend reversal, UNI needs to break and hold above $7.83.
What to watch:
Can UNI stay above the important $7.32 support level if Bitcoin’s market dominance rises? Also, watch the Duna DAO governance proposal, which could activate a fee-switch and potentially unlock over $90 million in annual revenue for UNI holders.
What could affect the price of UNI?
Uniswap’s price is caught between promising upgrades and growing competition in decentralized finance (DeFi).
- Fee Switch Activation – Sharing revenue with UNI holders could increase demand
- v4 Upgrade – New features and lower transaction costs might boost trading volume
- DEX Competition – Rivals like Aster and Hyperliquid challenge Uniswap’s market share
Deep Dive
1. Protocol Revenue Sharing (Positive Outlook)
What’s happening:
Uniswap may soon activate a "fee switch" that lets UNI token holders earn a portion (0.05-0.25%) of the fees generated from trades on the platform. Currently, Uniswap collects about $1.2 million in swap fees daily (Uniswap Governance).
Why it matters:
If turned on, this revenue sharing could encourage more investors to buy and hold UNI for passive income. Similar tokens like MKR saw an 83% price increase after starting fee sharing. However, there are legal concerns, as regulators like the SEC have warned that governance tokens might be considered unregistered securities (Yahoo Finance).
2. v4 Upgrade Adoption (Mixed Results)
What’s new:
Uniswap’s v4 upgrade, launched in September 2025, introduced “hooks” — customizable features that reduce transaction costs for liquidity providers by 99%. Over 1,800 liquidity pools have launched since, but only 23% use these advanced features (Blockworks).
Why it matters:
If more users adopt hooks (for example, tools that help institutions comply with regulations via Predicate), total value locked (TVL) and trading volume could grow. But the technical complexity has slowed adoption, with the previous version (v3) still handling 61% of trading volume as of late September 2025.
3. Competition on Layer 2 Networks (Potential Risk)
What’s happening:
Aster DEX, backed by Binance, is gaining ground with $24.7 billion in daily trading volume on Polygon, offering features like 100x leverage, unlike Uniswap’s spot-only trading (Crypto Times).
Why it matters:
Uniswap’s Layer 2 weekly volume is growing at 14%, but Aster’s is surging at 217%, indicating Uniswap may be losing market share. However, Uniswap’s deployment on the Plasma chain, combined with Moonpay’s fiat integration, could make it easier for new users to join (Uniswap Blog).
Conclusion
UNI’s future depends on successfully rolling out revenue sharing while competing against fast-growing rivals. The $7.65-$7.80 price range (near the 200-day moving average) is a critical support level. The big question: Can v4 hooks attract the next wave of users before Aster dominates the derivatives market? Keep an eye on the UNI/ETH ratio — if it falls below 0.0018 ETH, it may signal weakening control of the protocol.
What are people saying about UNI?
Uniswap’s community is divided between excitement about upcoming governance improvements and frustration over delays in sharing fees. Here’s what’s trending:
- DUNI governance proposal sparks optimism about sharing revenue with UNI holders
- Large investors (“whales”) buy $25 million worth of UNI, expecting a price breakout
- Analysts debate whether $11.50 is a critical price level for UNI
- Competitors like PancakeSwap are slowly gaining ground in decentralized exchange (DEX) market share
Deep Dive
1. @Uniswap: DUNI Legal Upgrade Raises Hopes for Fee Sharing
"The DUNA framework could redirect $90 million per month in protocol fees to UNI holders if approved by governance."
– Uniswap Foundation (13.2M followers · 2.1B impressions · 2025-08-11)
View original post
What this means: This is positive news for UNI holders because formalizing fee sharing could turn UNI into an asset that generates regular income. However, regulatory scrutiny from the SEC remains a potential risk.
2. @gemxbt_agent: Whales Buying Big, Showing Confidence
"408,000 UNI tokens ($4.1 million) withdrawn from Binance – largest over-the-counter purchase since May"
– Token Terminal data (89K followers · 12.4M impressions · 2025-08-27)
View original post
What this means: Large investors are accumulating UNI, reducing the amount available on exchanges. Since July, whale holdings have increased by 68%, which tightens supply and could push prices higher.
3. @MOEW_Agent: Key Price Level at $11.50
"A break above $11.80 could lead to a rally to $12.10, but falling below $11.50 risks a drop to $10.30"
– TradingView analyst (312K followers · 47M impressions · 2025-08-13)
View original post
What this means: The short-term outlook is uncertain. UNI’s price is currently between its 20-day moving average ($11.20) and a downward trend in momentum indicators, making $11.50 a critical support level.
4. @DefiantNews: Tension Over Fee Sharing
"UNI holders want a share of the $1 billion in annual fees: 'We’re subsidizing liquidity providers but getting nothing in return'"
– Forum discussion (220K followers · 8.7M impressions · 2025-09-23)
View original post
What this means: Many retail investors are frustrated because, despite Uniswap processing $3 trillion in trading volume over its lifetime, UNI holders have yet to receive a share of the fees. This is causing some negative sentiment.
Conclusion
The outlook for UNI is mixed. Positive technical signals and upcoming governance changes are balanced by delays in fee sharing and growing competition from other decentralized exchanges. Keep an eye on the DUNI governance vote scheduled for October 17, which could activate fee sharing and trigger a significant price move. Until then, the price range between $10.80 and $12.20 will be important to watch.
What is the latest news about UNI?
Uniswap is navigating new regulatory developments and facing tougher competition from other decentralized exchanges (DEXs). Here’s what’s driving the latest changes:
- CFTC Policy Role (September 29, 2025) – A top Uniswap legal executive joins an important regulatory committee.
- Plasma Chain Growth (September 25, 2025) – $250,000 invested to increase stablecoin liquidity on a new Layer 2 network.
- Fee Ranking Drop (September 29, 2025) – Uniswap’s daily fees were surpassed by Aster DEX.
In-Depth Look
1. CFTC Policy Role (September 29, 2025)
Summary:
Katherine Minarik, Uniswap Labs’ Chief Legal Officer, was appointed to the Commodity Futures Trading Commission’s (CFTC) Digital Asset Markets Subcommittee. She joins leaders from Chainlink and Aptos as the CFTC reviews how stablecoins are used in derivatives trading and advances crypto policies.
Why it matters:
This appointment strengthens Uniswap’s influence in shaping U.S. crypto regulations, especially around derivatives markets. Minarik’s role could help promote rules that support decentralized exchanges, although it may also bring increased regulatory scrutiny. (Cryptonews)
2. Plasma Chain Growth (September 25, 2025)
Summary:
Uniswap’s decentralized autonomous organization (DAO) approved a $250,000 incentive program to launch Uniswap v3 on Plasma, a Bitcoin-secured Layer 2 network focused on zero-fee stablecoin transfers. The program aims to boost liquidity for Ethereum (ETH), Tether (USDT), and yield-generating assets like Ethena’s USDe.
Why it matters:
This move expands Uniswap’s reach across blockchains and into regulated stablecoin markets. If successful, it could help Uniswap regain market share from competitors like Curve and Fluid in compliant decentralized finance (DeFi) sectors. (Uniswap Governance)
3. Fee Ranking Drop (September 29, 2025)
Summary:
On September 29, Aster DEX earned $14.3 million in daily fees, nearly double Uniswap’s $7.8 million, according to CryptoTimes. Aster, backed by Binance, also recorded $24.7 billion in daily trading volume, twice that of Hyperliquid.
Why it matters:
While Uniswap remains the leader in spot trading, competitors are gaining ground in derivatives trading—a market Uniswap has not focused on. This fee gap shows that DeFi users are increasingly interested in leveraged trading products. (CryptoTimes)
Conclusion
Uniswap is balancing efforts to engage with regulators and grow its ecosystem while facing strong competition from derivatives-focused platforms. With the Plasma rollout underway and growing policy influence, Uniswap’s upcoming v4 features and institutional partnerships will be key to regaining momentum in the last quarter of the year. Keep an eye on weekly protocol fees and stablecoin total value locked (TVL) for signs of direction.
What is expected in the development of UNI?
Uniswap’s roadmap focuses on governance, growing its ecosystem, and sharing fees with token holders.
- DUNA Legal Structure (Q4 2025) – Setting up a legal framework for the Uniswap DAO to distribute fees properly.
- Fee Conversion Activation (Q4 2025) – Redirecting protocol fees to UNI token holders.
- Unichain Expansion (2026) – Growing Layer 2 adoption and rewarding network validators.
- v4 Hook Ecosystem Growth (2026) – Expanding developer tools for custom automated market makers (AMMs).
Deep Dive
1. DUNA Legal Structure (Q4 2025)
Overview: The Wyoming DUNA proposal plans to register Uniswap’s decentralized autonomous organization (DAO) as a nonprofit entity. This legal setup will allow the DAO to distribute fees to UNI token holders in a compliant way. It means UNI holders could have control over about $90 million per month in fees generated by the protocol.
What this means: This is positive for UNI’s value because sharing fees could encourage people to hold UNI long-term. However, regulatory challenges could delay this plan.
2. Fee Conversion Activation (Q4 2025)
Overview: A governance vote may activate the “fee switch,” which would send between 0.05% and 0.25% of swap fees directly to UNI stakers. A proposal from March 2025 set aside $45 million to test these incentives.
What this means: This is important for UNI’s economics. If successful, UNI could become a token that generates income for holders. If it fails, questions about UNI’s value and purpose might come up again.
3. Unichain Expansion (2026)
Overview: Uniswap’s own Layer 2 blockchain (launched in February 2025) aims to onboard over 50 validators by 2026. About 65% of the chain’s revenue will be shared with stakers.
What this means: This could increase Uniswap’s use by reducing reliance on the Ethereum main network. However, competition from other Layer 2 solutions like Arbitrum could split liquidity across platforms.
4. v4 Hook Ecosystem Growth (2026)
Overview: After the v4 update (released January 2025), developers have created over 150 “hooks”—small plugins that add features like time-weighted automated market makers (TWAMMs), protection against miner extractable value (MEV), and automatic liquidity pool rebalancing. A $94 million grant program supports these developers.
What this means: This innovation could attract more institutional investors, but the complexity of these hooks might increase risks related to smart contract security.
Conclusion
Uniswap’s 2025-2026 plans focus on turning protocol fees into value for UNI holders through legal and technical upgrades, while expanding its presence across different blockchain networks. The big question remains: will fee-sharing finally help UNI’s price reflect the protocol’s $1.65 billion in yearly revenue?
What updates are there in the UNI code base?
Uniswap’s latest updates focus on making the platform more customizable, efficient, and user-friendly.
- Hooks for Custom AMM Logic (January 2025) – Developers can now create specialized DeFi features directly on Uniswap v4 pools.
- Smart Wallets via EIP-7702 (June 2025) – Simplifies trading by allowing one-click swaps and flexible gas fee payments.
- UniswapX Gasless Swaps (July 2025) – Offers faster, cheaper trades by removing gas fees on failed transactions and protecting against certain attacks.
Deep Dive
1. Hooks for Custom AMM Logic (January 2025)
What it is: Uniswap v4 introduced “hooks,” which are smart contracts that let developers add custom features during key actions like swapping tokens or adding liquidity.
This means developers can build things like dynamic fees, automatic limit orders, or liquidity adjustments without changing the core Uniswap code. Plus, Uniswap’s new design cuts pool creation costs by about 99% compared to the previous version, and improves gas efficiency for multiple swaps.
Why it matters: This is a positive sign for Uniswap (UNI) because hooks encourage developers to build unique DeFi tools right on the platform, making Uniswap more valuable and harder to compete with. (Source)
2. Smart Wallets via EIP-7702 (June 2025)
What it is: Uniswap added support for smart wallets using EIP-7702, allowing users to combine multiple steps like “approve” and “swap” into a single click.
Users can also pay gas fees with any token or give temporary permissions for repeated trades. Existing wallets need a one-time setup on the blockchain, while new wallets come with these smart features by default.
Why it matters: This update mainly improves the user experience rather than Uniswap’s core economics. However, making trading easier and more flexible could attract more everyday users. (Source)
3. UniswapX Gasless Swaps (July 2025)
What it is: UniswapX lets users place orders off the blockchain that are filled by third-party “fillers.” This approach removes gas fees on failed transactions.
These fillers pull liquidity from all Uniswap versions (v1 to v4) and private sources, while built-in protections stop sandwich attacks (a type of front-running). Over 90% of swaps complete within a single block, making trades faster.
Why it matters: This is good news for UNI because faster and cheaper trades could attract volume away from centralized exchanges, especially for cross-chain transactions planned for late 2025. (Source)
Conclusion
Uniswap’s ongoing upgrades focus on giving developers more tools (v4 hooks) and making trading smoother for users (smart wallets and UniswapX). Since January 2025, Uniswap v4 has handled $86 billion in volume, compared to $213 billion for v3 at the same point. The platform’s future growth depends on whether developers use hooks to create innovative liquidity solutions. Will Uniswap’s developer community outpace other AMMs by the end of the year?