Uniswap Burns Hit Record High as Robinhood Chain Fuels Growth

Uniswap's growth has accelerated significantly in recent times, thanks to the rapid expansion of Robinhood Chain. Within two months, tokenized-stock holders on the platform surged from nearly zero to a staggering 863,800. This influx of new users has led to substantial increases in daily trading volume, which averaged between $100 million and $130 million. As a result, fees and revenue for Robinhood Chain have skyrocketed.

On September 4th, fees reached an all-time high of $6 million, while revenue climbed to $5.4 million. This surge in activity also pushed daily UNI burns to a record-breaking value. According to DeFiLlama data, daily fees for Uniswap reached $12.5 million, with revenue exceeding $1 million.

The accelerated burn mechanism is working as intended, reducing the circulating supply of UNI tokens. However, the impact on UNI's price still depends on demand and the remaining supply. Despite record burns, UNISWAP faced selling pressure from Spot traders, with Spot Netflow rising to $2.1 million after a previous day of -$6.6 million.

Despite this selling pressure, Uniswap's market structure retains a bullish bias. The Positive Directional Indicator remains above the Negative Directional Indicator, indicating that buyers maintain directional control. With stronger demand and continued burns, UNI could target $7 if it holds support at $6.