- The Uniswap price shows a short-term consolidation trend resonating within the $6.5 and $4 horizontal levels.
- Uniswap treasury burned 100 million UNI valued near $596 million.
- A flatish trend in exponential moving averages (20, 50, 100 and 200) accentuates a sideways trend in price
UNI, the native cryptocurrency of the decentralized cryptocurrency exchange Uniswap, is down 3.75% on Monday, December 29th to reach $6% trading. The downtick follows a notable surge in market selling pressure as Bitcoin shows another reversal from the $90,000 mark. Despite sluggish market trend, Uniswap foundation recently approved its fee burning proposal,
Uniswap Burns 100M Tokens Following 99.9% Governance Approval
Since last week, the Uniswap price has bounced from $5.59 to $5.98trading value, registering a 7% surge. Consequently, the asset market cap bounced to $3.77 billion.
While a majority of major cryptocurrency witnessed a prolonged market consolidation, the UNI price amid the recent approval of its fee burning mechanism.
According to recent onchain data, the Uniswap’s treasury burned 100 million UNI tokens worth approximately $596 million at 4:30 a.m. on December 28, 2025.
This step follows directly on from the recent governance approval of the UNIfication proposal, which came to a close with near-total consensus just days ago. The vote saw more than 125 million UNI cast in favor and only 742 against, delivering 99.9% support in the activation of protocol fees and linking them to continuous token burns.
The 100 million UNI destruction is a retroactive adjustment attempt, to attempt to approximate how much would be burned if fee collection was active from the early days of Uniswap. Previously, all trading costs were directed to the liquidity providers; now, some of the cost is directed to the protocol and used to reduce UNI’s supply over time.
The move represents a structural shift for the top decentralized exchange on Ethereum where the daily volume frequently runs to the billions. In addition to the original burn, fees from select v2 and v3 pools, as well as Unichain sequencer revenue after incurring certain costs, will all go into the same deflationary mechanism in the future.
Separately, governance tasked 20 million UNI towards continued development and ecosystem growth efforts.
Key Resistance to Watch Amid Uniswap Price Recovery
Over the past five weeks, the showed a sluggish sideway trend wavering between the $6.5 and $5 horizontal level. The consolidation can be attributed to broader crypto market consolidation.
Interestingly, the lateral movement is hovering above a long-coming support trendline on the daily chart. Since June 2023, the coin price has witnessed a dynamic support from this bottom trendline, providing buyers a stable accumulation zone to recoup bullish momentum.
Historically, the bullish reversal from this support has bolstered Uniswap price with triple digital growth. Recently, the coin price has rebounded from the support trendline and is steadily heading for $6.5 resistance.
A potential breakout from this resistance will accelerate buying pressure and push UNI around 20% to challenge another key resistance of the downsloping trend at $7.73. This dynamic resistance currently drives the correction trend in UNI.
However, if the Uniswap price struggles to breakout resistance at $6.5 or $7.73, the ongoing consolidation trend would prolong for weeks or months.
Also Read: Bitcoin Price Stalls Near $90K as Fear Spikes and Leverage Surges
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