$UNI Price Target May Be Conservative Amid Strong Token Burning

Standard Chartered's digital asset research unit has made some significant assessments about Uniswap's native token, $UNI. According to Geoffrey Kendrick, head of the unit, the collaboration between Uniswap and Robinhood has exceeded expectations.

In fact, since July 27th when the Robinhood-related fee-sharing mechanism was launched, there has been a notable increase in the rate of $UNI token burning. The Block reported that this increase nearly doubled after the launch date, reaching an annualized $90 million.

This corresponds to around 25 million $UNI tokens being removed from circulation annually, which is more than 4% of the circulating supply. Standard Chartered believes that this decrease in supply could put upward pressure on the $UNI price if demand remains steady or increases.

Kendrick also noted that maintaining the current burning rate for an extended period may be challenging. Even at a projected $6.50 price by the end of 2026, the annual burning rate would remain around 2.2%.

The introduction of new partnerships like Robinhood in the future could have a more significant impact on the $UNI token economy, potentially leading to higher prices and stronger demand for the token.