Uniswap UNI Surges 91% as Record Volume Triggers Burn Rate Spike

Uniswap's UNI token has surged 91% since August 12 when it was undervalued due to its live fee switch and 100 million token burn. According to Uniswap founder Hayden Adams, the seven-day annualized UNI burn rate crossed $250 million on September 9, up from roughly $200 million days earlier.

The increase in burn rate is largely attributed to the record volume of $1.3 billion recorded on Robinhood Chain, with Uniswap capturing most of it. This high volume converts directly into fees and burns, driving UNI's price up.

The current pace of the burn is significantly higher than comparable mechanisms, with estimates suggesting between 2.8% to 6% of supply or market value per year depending on which run-rate is used.