Uniswap (ETH: $UNI) has seen a resurgence in interest in recent weeks. UNI, the native token of the Uniswap decentralized exchange, has experienced double-digit growth recently. Let us dive into why UNI has been trending recently.
Why Uniswap (UNI) Is Surging
The recent surge in the price of UNI can be attributed to the activation of the protocol’s fee switch. This concept has been in the works for years within the governance community. While macro events like the Fed’s interest rate decision often influence the movements in the crypto sector, UNI has recently experienced growth due to internal developments.
Called the UNIfication plan, it was co-authored by Hayden Adams, the founder of the Uniswap protocol. The other authors are Devin Walsh, the Executive Director of the Uniswap Foundation, and Kenneth Ng, Uniswap researcher.
The plan introduces a new approach for value creation for UNI tokens. It creates a model where protocol use drives UNI burns. It also comes with a new team focused on protocol growth and development.
At the heart of the plan is the protocol fee switch activation. This mechanism will divert some of the trading fees that go to liquidity providers to the treasury. The revenue goes to a token jar, and UNI holders will be allowed to destroy UNI and, in turn, withdraw an equivalent amount from the jar.
The system ensures structured upward price pressure by cutting back the circulating supply via a perpetual burn mechanism. It is directly inspired by the Ethereum EIP-1559 mechanism, which has been quite effective at reducing ETH supply since it went live.
Across the crypto world, this move has been hailed as helping to set a new benchmark for the DEX industry, where revenue supports tokens. UNI price movement confirms that this sentiment is popular within crypto circles.
While the broader market reaction has been positive, it has not been without its detractors. The core concern is that it could negatively impact liquidity providers (LPs). Since the new mechanism will cut their revenue share, some worry that LPS will move to competing DEXs. Despite these concerns, prediction markets expect the proposal to pass, with a probability of 79%.
UNI Price Performance
As of Thursday, November 13, 2025, the price of UNI is around $7.51, a 42.0% increase in the past week. Despite the massive surge, the price of UNI is still an 83.3% discount to its all-time high of $44.92, achieved on May 3, 2021. That signals that there is still room for growth, especially with a new token burning mechanism coming into effect.
Is Now The Time To Buy Uniswap (UNI)
Uniswap helped to revolutionize the decentralized exchange market when it went live. Since then, it continues to be a major force of change and is unlikely to lose that title soon. With an active developer team and a massive user base, if the UNI proposal sails through, it could potentially lead to high gains for UNI.
Recently, UNI briefly went above $10 before a retraction. Analysts forecast that it could potentially cross above $10 towards the end of 2025. Consequently, adding UNI to your portfolio could potentially be beneficial in the medium term.
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