I just checked UNI and things are looking interesting. The token is trading around $3.25 now, but there is significant movement behind the scenes with a governance proposal that could change the game quite a bit for Uniswap.

What’s happening is that the protocol wants to expand the fee burn mechanism to eight Layer 2 networks like Arbitrum, Base, and Optimism. If it passes, annualized revenue could rise from about $34 million to around $61 million. Basically, they would automate fee collection and buy UNI to burn, which reduces the circulating supply.

On the technical side, Uniswap has formed a solid base between $3.70 and $3.80 where buyers repeatedly step in. The Bollinger Bands have tightened during consolidation, which typically precedes stronger moves. If the price sustainably breaks above $4.20, we could see a move toward the $4.55 to $4.60 zone. But if it drops below $3.70, we’d be seeing weakness that could bring us back to $3.30.

Trading volume has also increased quite a bit, so it seems there’s anticipation for this governance vote. Definitely something to keep on the radar.