Uniswap Token Price Plunges Nearly 9% Amid Deflationary Burns

Uniswap's token, UNI, has seen a significant decline of nearly 9% in value due to the protocol's activation of deflationary token burns tied to fee collection. This change in on-chain economics is further compounded by the token's weakness below its key moving averages, indicating sustained downside momentum.

The move to burn UNI tokens, linked to on-chain activity, was implemented in December 2025 as part of the Unifcation overhaul. Despite record market share among decentralized exchanges, with over 36 million distinct wallets trading on the platform across 23 active chains and holding over 61% of the DEX wallet market, the price has remained under broader selling pressure.

UNI/USD trades near daily lows, with a 73% probability of a move to $2.881 to $3.553 over five days. Record trading activity and integration have heightened UNI burns amid ongoing selling, but the prevailing downtrend remains unchanged.