Bullish Market Signals Spark Renewed Optimism for Uniswap’s Future

Decentralized finance's favorite liquidity protocol shows signs of life as traders pile back in.

Uniswap's native token (UNI) rides the wave of renewed DeFi interest—just don't call it a comeback yet.

Key indicators flash green: Trading volumes surge, liquidity pools deepen, and even the most jaded crypto bros are reluctantly reopening their MetaMask wallets.

The usual suspects fuel the rally: Ethereum's latest upgrade, some vague institutional interest, and that perennial favorite—hopium.

But let's be real—this is crypto. Today's 'fundamental breakthrough' is tomorrow's 'rug pull waiting to happen.' Proceed with cautious optimism (and maybe keep that sell order queued).

Tensions between China and the United States are easing, paving the way for increased global supply chain collaboration. Meanwhile, Bitcoin$105,483 continues to find buyers above its 350-day moving average, although altcoin investors generally face disappointing charts. Amidst these various dynamics, Uniswap distinguishes itself with promising potential for the coming periods.

Uniswap’s (UNI) Prospects

The year 2025 ushered in new peaks for Bitcoin and Ethereum$3,592. While some altcoins like BNB also performed well, the majority of cryptocurrencies lagged far behind the election rally. Despite hopes for the upcoming year remaining alive, certain negative elements continue to fuel short-term pessimism.

To positively differentiate themselves, altcoin teams are now required to exert more effort. The Uniswap team capitalizes on the advantages of changing regulatory attitudes under the TRUMP administration while strategically bolstering its local cryptocurrency.

Yesterday’s announcement of a supply reduction was well-received, with CryptoQuant CEO Ki Young Ju offering positive remarks.

“If the fee change is activated, Uniswap may enter a parabolic growth phase.

Counting only v2 and v3, a massive burn of 1 trillion-dollar volume year-to-date will occur. There are only 830 million dollars’ worth of UNI on exchanges, and despite the lock openings, a supply shock appears unavoidable today.”

Naturally, implementing fees is expected to generate significant revenue. Although Ki Young Ju forecasts revenue up to half a billion dollars annually with the current volume, what will be seen in practice is crucial. Various experts predict an annual burn of between 127 and 182 million dollars.

Earlier this year, we discussed Ethereum’s deflation until the first quarter, but for the last nine months, the supply has been increasing, and the narrative on paper has been shattered. We will closely monitor how the Uniswap team manages its consistent supply reduction strategy.

UNI Coin Predictions

It’s reassuring to know that the witch hunt initiated for DeFi will remain absent for at least three more years. As Coinbase launches its ICO platform and grants more freedom to U.S. DeFi platforms, they are also making bold moves. Due to yesterday’s news, the UNI Coin reached a peak today at $10.27.

If the story of burning hundreds of millions of dollars continues to attract buyers and general market sentiment doesn’t become overly negative, the peak is expected to reach $12.2 in the short term. For those who evaluated the $2 dip on October 10, the returns have been quite satisfactory over 32 days.