Why did the price of UNI go up?
Uniswap (UNI) increased by 4.96% in the last 24 hours, outperforming its 7-day decline of 0.96% and 30-day drop of 14.56%. This rise is supported by positive updates to the protocol and strong technical signals.
- TVL Reaches Highest Point This Year – UNI’s Total Value Locked (TVL) went over $7 billion, showing strong confidence in its leading role in decentralized finance (DeFi).
- Institutional Interest Remains Strong – Grayscale’s DeFi Fund kept UNI as its largest holding at 32.32%, highlighting continued institutional support.
- New Cross-Chain Feature Launched – The introduction of “The Compact” enables easier swaps across different blockchains, boosting market sentiment.
Deep Dive
1. Protocol Growth & TVL Surge (Positive Outlook)
Overview: On October 9, 2025, Uniswap’s TVL hit $7 billion, the highest this year, according to Gate Research. This increase reflects more users and liquidity providers engaging with Uniswap on Ethereum and Layer 2 networks like Arbitrum and Unichain.
Why it matters: A higher TVL usually means more fees earned by liquidity providers and greater revenue potential for the protocol. Since Uniswap handles about 24% of all decentralized exchange (DEX) trading volume worldwide, investors might see UNI as undervalued compared to its activity level.
What to watch: Whether TVL continues to grow after Bitcoin’s recent price stabilization.
2. Grayscale’s DeFi Fund Rebalancing (Mixed Signals)
Overview: Grayscale’s DeFi Fund (DEFG) kept UNI as its top asset at 32.32%, while adding Aerodrome Finance (AERO) and removing MakerDAO, as reported by Binance Square.
Why it matters: Institutional investment in UNI shows long-term confidence. However, adding AERO, which focuses on veTokenomics, introduces new competition for DeFi investment dollars. UNI’s strong position in Grayscale’s portfolio helps balance out these risks.
3. Technical Momentum (Short-Term Bullish)
Overview: UNI’s MACD indicator turned positive (+0.06315), signaling that downward pressure is easing. The current price ($8.19) is above the 7-day moving average ($8.04) but below the 30-day moving average ($8.58), indicating mixed market sentiment.
Why it matters: If UNI’s price rises above the 30-day moving average ($8.58), it could test the next resistance level at $9.63, based on the 23.6% Fibonacci retracement. The Relative Strength Index (RSI) at 41.65 suggests there’s room for price to move higher before becoming overbought.
Conclusion
UNI’s recent price increase is driven by a combination of institutional interest, protocol growth, and positive technical signals. Still, resistance at the 30-day moving average ($8.58) and a generally flat crypto market (total market cap down 0.36%) suggest caution.
What to watch: Can UNI stay above $8.50 if Bitcoin resumes its upward trend toward $126,000? Keep an eye on Grayscale’s fund movements and adoption of Uniswap v4.
What could affect the price of UNI?
Uniswap’s price is caught between promising upgrades and challenging market conditions.
- Fee Switch Activation – Sharing revenue with UNI holders could increase demand.
- Regulatory Clarity – U.S. regulators have eased concerns, but global rules remain uncertain, affecting institutional interest.
- DEX Competition – Rivals on other blockchains are gaining ground, putting pressure on Uniswap’s market share.
Deep Dive
1. Protocol Revenue Sharing (Positive Outlook)
Overview:
Uniswap’s latest update (version 4) introduces a “fee switch” that will send 65% of the platform’s net revenue to UNI token holders who stake or validate transactions. This comes after a big surge in DeFi revenue last September, totaling $600 million (CoinDesk). The upgrade is already live on Unichain and Ethereum, encouraging users to hold UNI longer.
What this means:
If this system works well, staking rewards could attract more investors, increasing demand for UNI. Similar moves by other projects, like Aave’s token buybacks, have historically boosted token prices alongside revenue growth.
2. Regulatory & Institutional Adoption (Mixed Effects)
Overview:
In February 2025, the U.S. Securities and Exchange Commission (SEC) ended its investigation into Uniswap without taking action, easing regulatory worries in the U.S. However, the European Union’s new MiCA regulations and Uniswap’s “Predicate Hook” tool for institutional compliance (0xPredicate) show that regulatory challenges still exist globally.
What this means:
Clearer regulations could bring more traditional financial institutions into the market, like BlackRock’s tokenized funds on the Sei blockchain. But inconsistent rules worldwide may slow down broader adoption. UNI’s recent 15% monthly price drop reflects ongoing caution among investors.
3. Layer-2 Competition (Challenges Ahead)
Overview:
New decentralized exchanges (DEXs) like Momentum on the Sui blockchain have reached $550 million in total value locked (TVL) and raised $4.5 million in token sales. Meanwhile, PancakeSwap leads on Binance Smart Chain (BSC) with $4.28 billion in daily trading volume. Uniswap’s Layer-2 volumes grew 37% year-over-year to $32 billion monthly but are spread across more than 10 different blockchains (DeFi Llama).
What this means:
Losing market share to competitors could limit Uniswap’s fee revenue growth. The 15.4% price drop over the past 30 days matches a 25% decline in the Altcoin Season Index since September, indicating investors are moving funds back to Bitcoin.
Conclusion
Uniswap’s future depends on successfully rolling out revenue sharing to counteract competition and broader market pressures. The $8.40 price level is a key resistance point—breaking above it could spark renewed buying interest, while failing to do so might test support at $7.32.
Will Unichain’s validator rewards keep pace with inflation after 2026?
What are people saying about UNI?
The Uniswap community is divided between optimistic technical signals and ongoing challenges with resistance levels, all while a key governance decision is on the horizon. Here’s the latest:
- Big investors showing confidence – A $25 million withdrawal hints at accumulation
- Will it break out or fall back? Traders are watching the $11.50 resistance and $10.80 support levels
- Governance decision ahead – A new “DUNI” proposal could unlock $90 million in monthly fees
In-Depth Look
1. Whale Activity Sparks Rally Hopes 🐋 Bullish
Crypto analyst @CryptoWhale points out a recent $25 million withdrawal by a large investor, along with increased wallet activity, which could set the stage for a potential 100% price increase.
View original post
What this means: When big investors (whales) accumulate Uniswap (UNI), it often signals confidence in the project’s role in decentralized finance (DeFi). However, whether this optimism lasts depends on the overall market environment.
2. DUNI Proposal Fuels Speculation 🏛️ Bullish
Another analyst, @johnmorganFL, highlights a governance proposal called “DUNI.” This plan would create a legal structure to distribute protocol fees to token holders, potentially generating $90 million per month if approved in the upcoming August 18 vote.
View original post
What this means: If the community approves this upgrade, UNI holders could start receiving a share of the fees generated by the protocol, which might drive the token price toward $15–$18 this year.
3. Key Support Test at $9.94 ⚖️ Mixed
Technical trader @gemxbt_agent notes that Uniswap’s price is testing important support levels. Indicators like RSI (Relative Strength Index) are recovering from oversold conditions, and MACD (Moving Average Convergence Divergence) is near a crossover, which could signal a trend reversal.
View original post
What this means: Traders are closely watching the $10.80 to $11.50 price range. A move above $11.50 could confirm upward momentum, while failure to hold support near $9.40 might lead to further declines.
Conclusion
The outlook for Uniswap (UNI) is mixed. On one hand, large investors are accumulating, and governance changes could unlock new revenue streams. On the other hand, the token faces resistance levels that it needs to overcome. UNI’s price is also influenced by Bitcoin’s performance (which currently holds about 58.57% of the crypto market) and the overall sentiment in the DeFi space. Keep an eye on the August 18 DAO vote—approval of the fee-sharing proposal could boost UNI’s value, while rejection might increase selling pressure.
What is the latest news about UNI?
Uniswap is evolving its platform to keep up with changing market trends. Here’s the latest update:
- Cross-Chain Breakthrough (October 8, 2025) – Launched an open-source system that connects different blockchains, making decentralized finance (DeFi) liquidity easier to access across networks.
- Grayscale Boost (October 8, 2025) – Uniswap’s token, UNI, now makes up 32.32% of Grayscale’s DeFi fund, showing growing interest from big investors.
- Fee Rebound Strategy (October 7, 2025) – Uniswap earned $600 million in fees in September, with new buyback programs linking revenue to token value.
Deep Dive
1. Cross-Chain Breakthrough (October 8, 2025)
Overview:
Uniswap introduced The Compact, a new open-source smart contract system that allows users to swap assets across different blockchains without needing special bridges. When users lock tokens on one blockchain, it triggers actions on others using ERC6909 tokens. This keeps users in control and reduces the problem of fragmented liquidity.
What this means:
This is good news for UNI holders because it solves a major issue in DeFi—making it easier to move assets between many blockchains. This could bring more users and funds to Uniswap, increasing its usage and fees. However, success depends on how many developers adopt this system. (CoinJournal)
2. Grayscale Boost (October 8, 2025)
Overview:
Grayscale, a major investment firm, increased UNI’s share to 32.32% in its DeFi Fund during its latest portfolio update, replacing MakerDAO with Aerodrome Finance.
What this means:
This change is neutral for UNI. While it may bring steady demand from passive investors, it mainly reflects index adjustments rather than strong active buying. The fund manages about $163.6 billion, so this could add some buying pressure. (Binance Square)
3. Fee Rebound Strategy (October 7, 2025)
Overview:
Uniswap’s fees jumped to $600 million in September, a 76% increase from earlier this year. This growth is thanks to the adoption of version 4 and a new system that uses extra revenue to buy back tokens and build reserves.
What this means:
This is cautiously positive for UNI. Buybacks can reduce the number of tokens available, potentially increasing value. However, the token’s price still depends on overall market conditions. A planned “fee switch” that would share 10-25% of liquidity provider fees with token holders is waiting on the launch of Unichain and regulatory approval. (CoinDesk)
Conclusion
Uniswap is pushing forward with new technology to connect blockchains while working on ways to better monetize fees and attract institutional investors. Although UNI has dropped 15% over the past month, it’s up 5% this week. The big question is whether seamless cross-chain trading will spark a new wave of DeFi growth or if delays in fee-sharing will limit UNI’s upside.
What is expected in the development of UNI?
Uniswap is moving forward with several key updates:
- Fee Conversion Activation (Q4 2025) – A vote will decide if protocol fees start going directly to UNI token holders.
- Wyoming DUNA Implementation (Q1 2026) – Setting up a legal framework to manage funds and comply with regulations.
- UniswapX Cross-Chain Expansion (2026) – Enabling easy, gas-free token swaps across Ethereum, Base, and Polygon networks.
- Unichain Validator Incentives (2026) – Sharing 65% of chain revenue with those who validate and stake tokens.
Deep Dive
1. Fee Conversion Activation (Q4 2025)
What’s happening:
Uniswap is considering a governance proposal to turn on the “fee switch.” This means a portion of the platform’s monthly fees—currently about $90 million—would be paid out to UNI token holders (Coinspeaker). This follows a big funding approval in March 2025 that included incentives for liquidity providers and grants.
Why it matters:
If approved, UNI tokens could start generating income, making them more attractive to investors. However, liquidity providers might reduce their activity if their share of fees drops, which could lower the total value locked (TVL) in the platform.
2. Wyoming DUNA Implementation (Q1 2026)
What’s happening:
Uniswap plans to create a Decentralized Unincorporated Nonprofit Association (DUNA) in Wyoming. This legal structure will help manage the treasury properly and handle tax responsibilities, including setting aside $16.5 million in UNI tokens for taxes (Coinspeaker).
Why it matters:
This move brings more legal clarity, which could attract institutional investors. It also means more compliance work but keeps the community in control of fee policies and token distribution.
3. UniswapX Cross-Chain Expansion (2026)
What’s happening:
UniswapX currently offers “one-click swaps” on Ethereum and will expand to Polygon and Base networks next year. It uses a new technology (EIP-5792) to cover gas fees, making swaps smoother and cheaper (Uniswap tweet).
Why it matters:
This will make Uniswap easier to use for over 3.2 million monthly users and help it compete with other platforms like Coinbase’s Smart Wallet. Success depends on keeping swap prices competitive.
4. Unichain Validator Incentives (2026)
What’s happening:
Unichain, Uniswap’s Layer 2 network, plans to share 65% of its revenue with validators and stakers, according to the 2024 roadmap (Gate.io).
Why it matters:
This could encourage more activity on Unichain, but its success depends on how it competes with other Layer 2 solutions like Arbitrum. For context, Starknet (another Layer 2) currently holds about $2.5 billion in TVL, indicating moderate potential earnings.
Conclusion
Uniswap’s plans focus on rewarding token holders, adapting to regulations, and improving user experience. The key decision will be the vote on fee redistribution—whether to boost short-term income for holders or support long-term growth by keeping liquidity providers happy. Keep an eye on governance votes and how well Unichain is adopted after launch.
What updates are there in the UNI code base?
Uniswap’s platform is constantly improving with important updates that make it faster, cheaper, and easier to use.
- UniswapX Integration (July 22, 2025) – Swaps now complete in a single block with no gas fees and protection against MEV (Miner Extractable Value) risks.
- Smart Wallets (June 9, 2025) – New self-custody wallets let users combine multiple actions into one transaction and pay gas fees using any token.
- v4 Launch (January 31, 2025) – Introduced customizable pools and cut pool creation costs by 99% using new “hooks” technology.
Deep Dive
1. UniswapX Integration (July 22, 2025)
What it is: UniswapX combines different liquidity sources and completes swaps within a single block. This lowers transaction costs and protects users from MEV, which can cause losses during trades.
UniswapX uses a Dutch auction system where third parties called “fillers” compete to execute swaps. This avoids fragmented liquidity pools and uses private or on-chain liquidity efficiently. Users don’t pay gas fees if a transaction fails, and cross-chain swaps are easier.
Why it matters: This upgrade is positive for UNI because faster, cheaper swaps attract more users, and MEV protection helps traders keep more of their funds. (Source)
2. Smart Wallets (June 9, 2025)
What it is: Uniswap introduced smart wallets based on EIP-7702 that combine approvals and swaps into a single click.
These wallets allow users to batch multiple transactions (like approving and swapping tokens at once), pay gas fees with any token, and automate portfolio management. Delegation requires a one-time on-chain approval per blockchain but keeps users in control of their funds.
Why it matters: This makes using Uniswap simpler for everyday users, lowering the barriers to entry and encouraging more people to use UNI. (Source)
3. v4 Launch (January 31, 2025)
What it is: Version 4 introduced “hooks,” which are modular plugins that allow for features like dynamic fees, limit orders, and automated liquidity management.
The new singleton contract design reduced the cost of creating pools by 99%, and flash accounting lowered gas fees for multi-step swaps. The update was thoroughly tested with nine security audits and a $15.5 million bug bounty program.
Why it matters: Customizable pools attract developers and liquidity providers, which strengthens the Uniswap ecosystem and expands its capabilities. (Source)
Conclusion
Uniswap’s latest upgrades focus on making the platform more efficient, user-friendly, and secure. With innovations like hooks and cross-chain swaps coming soon, these improvements are set to reinforce Uniswap’s position as a leading decentralized exchange.