Uniswap’s “UNIfication” Proposal Ignites 30% UNI Rally—Here’s What It Means for DeFi

After a steady performance in the broader crypto market—where Bitcoin traded around $105,000 and altcoins traded selectively—Uniswap (UNI) has emerged as one of the standout gainers. The leading decentralized exchange token climbed above the $12 mark, gaining over 4% in the last 24 hours as traders rotated toward DeFi assets with strong on-chain activity.  Moreover, the recent proposal by the Uniswap founder, ‘UNIfication,’ seems to have had a huge impact on the UNI price. However, the question arises whether the bulls can keep up the momentum and push the rally to $12.

Why is the Uniswap Price Rising Today?

Uniswap’s ecosystem saw a surge in activity after founder Hayden Adams unveiled a bold governance proposal titled “UNIfication.” The plan seeks to activate protocol fees, burn UNI tokens using those fees, and remove 100 million UNI from the treasury, marking a major shift toward a deflationary model that rewards holders.

The announcement sparked a sharp rally, with UNI jumping over 30% in hours to a two-month high. The proposed mechanism would channel a share of DEX trading fees into token burns—reducing supply and enhancing UNI’s long-term value outlook.

On-chain data supports the optimism: Uniswap’s 24-hour trading volume exceeded $2.9 billion, and UNI’s own trading volume climbed more than 500% as investors responded to the tokenomics overhaul. If approved, the proposal could set a new standard for DeFi protocols linking protocol revenue directly to token value.

UNI Price Analysis: Can it Reach $12?

At press time, Uniswap trades near $8.81, marking a 30% increase in the past 24 hours. The token has maintained higher lows since early November, indicating a steady bullish structure. With a massive rise in the volume that hit the highs above $2.6 billion from levels around $500 million, the UNI price marked an intraday high above $10. Currently, the rally is cooling off, but from a wider perspective, it is preparing for the next bullish wave. 

The weekly chart suggests the UNI has become more volatile since 2024 as Bollinger bands display extreme variations after remaining stable for nearly 2 years. Despite the current rise, the bands remain largely parallel, suggesting the token will maintain an ascending consolidation until it reaches the upper band, which coincides with one of the important resistances at $12. Besides, the weekly MACD displays a drop in selling pressure while the levels head for a bullish crossover. The technicals indicate that the Uniswap price is poised for a major breakout, with a daily close above the average bands at $8.7 validating a rise above $11 and a rise above $12. 

What’s Next for UNI Price?

With Uniswap’s “UNIfication” proposal shaking up the DeFi landscape, market sentiment around UNI has turned decisively bullish. Traders are eyeing a potential continuation of the rally if the governance vote passes and fee activation goes live. A confirmed burn of 100 million UNI from the treasury could tighten circulating supply, supporting further upside momentum.

However, short-term volatility is likely as investors assess the proposal’s implementation timeline and broader crypto market trends. If Bitcoin holds above key psychological levels, UNI could extend gains toward its next resistance zone, while any delay in governance approval might trigger a brief cooldown. Overall, Uniswap’s shift toward a deflationary token model positions UNI as one of the most promising large-cap DeFi tokens to watch in the coming weeks.