Uniswap (UNI), the governance token of the decentralized Uniswap exchange, has recorded an increase of over 50% in the last 24 hours to reach a two-year high of $12.73. UNI’s trading volume increased by 1,200% in one day to $1.33 billion. With a market capitalization of $6.7 billion, UNI reached 15th position in the CoinMarketCap ranking. This performance follows a proposal by the Uniswap Foundation to upgrade the protocol’s governance system.
Fee-sharing and Governance Proposal
The proposal submitted by the Uniswap Foundation’s Head of Governance, Erin Koen, aims to reward UNI holders who have wagered and delegated their tokens. This upgrade would strengthen and energize Uniswap’s governance.
Potential impact
Decentralized, resilient and committed governance is essential to the long-term health and success of the protocol. This upgrade should strengthen and revitalize Uniswap’s governance. Following the proposal, UNI jumped over 73%, from an opening of $7.34 to an intraday peak of $12.76 on February 23.
UNI Market performance
The price of UNI finally broke its consolidation with an impressive bullish candle, surprising traders. Currently, UNI is trading at $10.70. Open interest in UNI exploded to $174.4 million due to the excitement surrounding these potential offers. Liquidated short positions were as high as $3.07 million, compared with liquidated long positions worth $1.78 million, as Uniswap’s price rose by around 50%.
In conclusion, the recent dramatic rise in UNI’s price following the proposal to strengthen governance and fee sharing demonstrates the market’s positive reaction to initiatives aimed at strengthening Uniswap in the ever-changing landscape of decentralized exchanges and DeFi tokens.
