Uniswap’s price is targeting $4.55 the previous split level as traders stand ahead of a governance vote that could increase cost burn and increase the protocol’s revenue.
Summary
- UNI holds a $3.80 dividend after an 18% multiple.
- The takeover proposal would increase annual revenue to $61M through an extended capital burn.
- A break above $4.20 would open up room towards the $4.55–$4.60 area.
Uniswap (UNI) traded at $4.02 at press time, up nearly 10% in the last 24 hours. The token is trading near the top of its weekly range between $3.29 and $4.12.
UNI gained 18% last week, marking a strong bounce from recent lows, although it is still down 15% over the past month.
Spot trading volume jumped to $554 million, up 119% in one day. CoinGlass data shows futures volume increasing by nearly 80% to $640.5 million, while open interest increased by 15.2% to $285.6 million.
When both volume and open interest increase together, it usually means that new positions are being opened rather than just being closed by shorts.
The expansion of currency exchange adds direct value to UNI
Uniswap’s management is pushing ahead with a proposal to expand its currency exchange program. It follows the 2025 release of UNIfication, which began charging protocol fees to Ethereum and introduced the UNI token burn.
Under the new proposal, protocol fees would also be applied to all eight additional Layer 2 networks, including Arbitrum, Base, and Optimism. This system will automatically collect funds and send the available funds back to the Ethereum mainnet, where they will be used to purchase and burn UNI tokens.
If approved, the extension would increase annual protocol funding to nearly $61 million, up from $34 million. Part of the cost of the exchange will go from the providers of the currency to the treasury, directly linking the trading activity to the reduction of the supply of tokens.
That flexibility is often attractive to long-term owners because it means that usage will translate into measurable value capture. Voting is divided into two phases, the first is already live and the second is scheduled between Feb. 27 and March 1.
Technical view: $4.60 playable if the exit is stuck
UNI has formed a clear base around $3.70–$3.80. Price has held that position several times, and recent candles show buyers entering the dip. As the Bollinger Bands strengthen, the market may prepare for a sharp move.
Momentum has improved, with the relative strength indicator retracing above the central line. The price is retesting the descending trendline from the December highs and is pushing short-term moving averages.
Volatility was heightened during the consolidation, and the recent increase in volume indicates that the market is preparing for a major move. A 20% advance from the $3.80 low projects a target near $4.55–$4.60, an area consistent with previous breakout levels and moving average resistance.
A strong break above $4.20 would strengthen the case for that move. If the price falls below $3.70, the recovery effort will weaken, opening the door for a return to $3.30.
