Uniswap's Robinhood Partnership Fires Up Burn Rate, Potentially Fuelling $100 Target

Standard Chartered's head of digital asset research, Geoffrey Kendrick, believes that Uniswap's partnership with Robinhood is yielding stronger-than-expected results. Since the activation of the Robinhood-linked fee switch on July 27, UNI burn volume has roughly doubled, reaching an annualized $90 million.

This represents about 4% of the circulating supply at current prices. Kendrick notes that while such a high burn rate is unlikely to be sustained indefinitely, even if UNI reaches his year-end 2026 target of $6.50, the annualized burn rate would still be around 2.2%. He considers this figure high over the long term.

The activation of the fee switch allows a portion of trading fees to be used to buy back and burn UNI tokens, thereby reducing the total supply. Kendrick suggests that if the current burn rate persists, it could significantly impact UNI's supply dynamics, potentially supporting the token's price over time.