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UNI token rallies to two-year high amid support for fee share proposal

TL;DR

  • UNI token soars to a two-year peak on Uniswap’s proposal boost.
  • The proposal aims to reward UNI holders and boost trading volume and market cap.
  • Despite overbought worries, UNI’s bullish trend continues, with analysts expecting more gains.

The decentralized exchange (DEX) platform Uniswap’s native token, UNI, has surged to a two-year price high, buoyed by the overwhelming support for a fee share proposal. This surge follows the Uniswap Foundation’s proposal to enhance the protocol’s governance structure to increase community involvement and reward UNI token holders.

Proposal overview and community response

The proposal focuses on redistributing protocol fees to UNI token holders who have staked and delegated their tokens, granting them a more active role in decision-making processes. The upgrade seeks to enable permissionless and programmatic collection of protocol fee revenue through enhancements to the mainnet UniswapV3Factory contract.

Since the commencement of snapshot voting on March 1, the proposal has garnered significant support from the Uniswap community. As of the latest update, 55 million UNI tokens, representing 100% agreement, have backed the upgrade, indicating widespread approval within the community.

Impact on market performance

The surge in UNI’s price has been accompanied by a remarkable increase in trading volume, which has jumped by 120% over the last 24 hours to $1.18 billion. With a market capitalization of $9.4 billion, UNI has climbed to become the 16th-largest cryptocurrency by market capitalization, reflecting growing investor confidence in the platform’s prospects.

Data from Token Terminal reveals a notable uptick in Uniswap’s network activity, with daily users doubling from around 75,000 in October 2023 to 168,106 on March 2. This surge in activity underscores the increasing adoption of the Uniswap ecosystem, driving up demand for UNI tokens.

Technical analysis and future outlook

UNI’s price trajectory has been steeped, with the token surging over 143% from a low of $7 on Feb. 23 to an intraday high of $17.03 on March 6. The relative strength index (RSI) indicates upward momentum, with a reading 87 suggesting dominant buying pressure in the market.

However, the RSI also points to overbought conditions for UNI, raising concerns about a possible trend reversal. Analysts anticipate further upward momentum as buyers aim to retest the high at $17 before potentially facing resistance at the $20 level.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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