Uniswap News Update: UNI Rallies Amid Fee Switch Optimism, Yet Large Holder Sell-Offs Raise Concerns

Uniswap's native asset,

, as renewed enthusiasm for the protocol’s governance initiatives and notable whale transactions fueled its rise. UNI’s price surge, which saw it , was largely driven by ongoing discussions around the Fee Switch Proposal—a governance measure that could allocate a share of the protocol’s $400 million-plus annual revenue to buying back and burning UNI. Both traders and institutional players are monitoring the proposal closely, as it has reignited debate over how to better align token holder incentives and ensure the protocol’s sustainability.

This price movement took place even as the broader market declined, with

and experiencing heavy selling. In spite of the negative market trend, UNI outshone its peers, with its to reach $682 million. Technical analysis also indicated the rally could continue: UNI at $6.42 and neared the 200-day SMA of $7.94, suggesting strong bullish momentum in the short term. . Experts pointed out that if bulls manage to close a daily candle above $8, UNI could $9.46 within a week to ten days, provided trading volume remains above $650 million.

Yet, this optimism was dampened by notable on-chain moves from prominent individuals. BitMEX co-founder Arthur Hayes

over the weekend, trimming his UNI exposure as part of a broader DeFi asset sell-off. Blockchain data shows Hayes’ ETH balance fell from 6,500 to 5,000 tokens, worth $16.11 million, with his UNI holdings also reduced. that these moves were active sales rather than simple portfolio adjustments, introducing caution for those gauging market direction.

UNI’s support zones remained solid, with historical levels below $6.50 acting as a cushion against deeper declines. The Relative Strength Index (RSI-14) registered at 53.16, pointing to a neutral to slightly bullish outlook, while the MACD histogram flipped positive, hinting at institutional accumulation. Still, bears cautioned that a close below $7.41 could prompt a retest of the $6.42 support, though this would likely require a sharp drop in both volume and momentum.

The Fee Switch Proposal continues to be a key factor for UNI’s future. If it passes, the plan could formalize buybacks, potentially shrinking the token’s supply and boosting demand through protocol-generated income. This reflects a wider trend in DeFi, where governance-led value redistribution is increasingly seen as a confidence driver for investors. At the same time,

of 1.2 million UNI tokens by major holders this week further highlight the asset’s attractiveness amid market turbulence.

As the crypto winter persists, UNI’s performance underscores the dynamic between protocol innovation and broader economic forces. While overall sentiment remains bearish, with the Fear & Greed Index deep in fear territory, tokens like UNI that offer tangible utility and governance-driven value are drawing defensive capital. The next few weeks will reveal whether the Fee Switch Proposal can cement UNI’s status as a key player in Ethereum’s DeFi landscape, or if selling pressure from figures like Hayes will limit its upward movement.