- Uniswap’s UNI has mounted a stunning rally, defying the market trend over the past 24 hours.
- The rally appears linked to a recent proposal from the Uniswap Foundation.
- The recent rally marks the second time the community has been excited in just over a week.
Over the past 24 hours, the prices of most crypto assets have remained largely muted as Bitcoin continues to range around the $51,000 price point. Amid the market doldrums, however, UNI, the governance token of the Uniswap DAO, has turned heads by staging an over 80% price rally.
Why is UNI defying the market trend?
Investors Salivate at Opportunity to Earn Uniswap Fees
In the past few hours, Uniswap has jumped over 80% from lows of around $7 to highs above $12, trading above this level for the first time since March 2022. At the time of writing, however, the asset has shed some of these gains to trade just above the $10 price point.
The massive price spike follows a recent proposal by the Uniswap Foundation to reward UNI holders for staking and delegating their tokens from fees generated by the popular decentralized exchange. According to the Uniswap Foundation, the move would help incentivize sustainable governance participation in light of widespread apathy.
Sponsored
In the proposal, the Foundation asserts that less than 10% of the circulating UNI supply usually participated in governance votes, and less than half of the top 30 delegates have participated in the last ten proposal votes.
“We believe UNI token holders will be incentivized to choose delegates whose votes and engagement with the protocol will lead to the Protocol’s growth and success. If this proposal succeeds we believe we will see an influx of new delegation. And because existing delegators will be required to re-delegate to stake their tokens, we will see a shift of “stale” existing delegation to delegates who have proven their commitment to supporting the protocol,” Uniswap Governance Lead Erin Koen wrote.
The recent proposal marks the second time the Uniswap Foundation has sparked buzz in the community in just over a week.
Back-to-Back Positives
On Thursday, February 15, the Uniswap Foundation unveiled the timeline for the Uniswap v4 upgrade, disclosing that it would roll out in Q3 2024. The highly anticipated upgrade is expected to bring greater customizability and efficiency to the protocol.
Sponsored
At the time of writing, Uniswap remains the largest DEX by TVL, with over $4.9 billion, per Defi Llama data.
On the Flipside
- The UNI rewards proposal still has to go through a series of votes before any network changes can be made.
- Previous proposals seeking to reward UNI stakers from Uniswap fees failed to pass the community voting process.
- UNI remains over 77% below its all-time high of nearly $45.
Why This Matters
Uniswap is the largest crypto DEX. The recent rise of UNI against the market trend necessitates a deep dive into the catalysts.
Read this for more on Uniswap:
Here’s What Uniswap v4 Brings as Launch Timeline Is Unveiled
Learn about the Polkadot-backed Hyperbridge project:
How Polkadot-Backed Hyperbridge Plans to Link All Blockchains
