Standard Chartered Sees $100 UNI Price Target as 'Too Low' Amid Burn Rate Surge

Standard Chartered's head of digital assets research, Geoff Kendrick, has revised the bank's $100 price target for Uniswap's UNI token, citing a surge in burn rate due to increased fee revenue. The current burn rate would allow for the annual burning of approximately 25 million tokens, about 4% of the circulating supply. However, Kendrick notes that this rate is 'clearly not sustainable' and may actually be even higher than expected, at 2.2% by the end of 2026.

The surge in revenue can be attributed to Uniswap's recent increase in fee revenue, which averaged $244,222 per day from July 27 to August 12. This is a significant rise from the previous 17-day average of $99,770. The revenue generated by Uniswap on Robinhood Chain has been particularly substantial, accounting for 60% of the total protocol revenue over the past seven days.

Kendrick highlights that this trend may be even more pronounced in the future, as additional partnerships like Robinhood are added to the mix. However, it is unclear whether this revenue base can continue over the long term, making a revaluation of UNI dependent on this factor rather than the burn structure itself.