Uniswap price eyes 20% rally on fee switch proposal

Uniswap price targets $4.55 prior breakdown level as traders position ahead of a governance vote that could expand fee burns and boost protocol revenue.

Uniswap (UNI) traded at $4.02 at press time, up about 10% in the past 24 hours. The token is trading near the top of its weekly range between $3.29 and $4.12.

UNI has gained 18% over the past week, showing a firm bounce from recent lows, though it is still 15% lower over the past month.

Spot trading volume jumped to $554 million, up 119% in one day. CoinGlass data shows futures volume climbing nearly 80% to $640.5 million, while open interest rose 15.2% to $285.6 million.

When both volume and open interest rise together, it usually means new positions are being opened rather than just shorts closing. 

Fee switch expansion adds direct value to UNI

Uniswap governance is advancing a proposal to widen its fee switch system. It follows the 2025 UNIfication rollout, which began charging protocol fees on Ethereum and introduced UNI token burns.

Under the new proposal, protocol fees would also be applied across eight additional Layer 2 networks, including Arbitrum, Base, and Optimism. The plan would automate fee collection and send the proceeds back to Ethereum mainnet, where they would be used to buy and burn UNI tokens.

If approved, the expansion could lift annualized protocol revenue to about $61 million, up from $34 million. Part of swap fees would shift from liquidity providers to the treasury, directly linking trading activity to token supply reduction.

That dynamic tends to attract long-term holders because it means usage will translate into measurable value capture. Voting is split into two phases, with the first already live and the second scheduled between Feb. 27 and March 1.

Technical outlook: $4.60 in play if breakout holds

UNI has built a clear base around $3.70–$3.80. Price has held that zone multiple times, and recent candles show buyers stepping in on dips. With Bollinger Bands tightening, the market may be gearing up for a sharp move.

Momentum has improved, with relative strength index pushing back above the midline. Price is also testing a descending trendline from December highs and pressing against short-term moving averages.

Volatility had tightened during consolidation, and the recent expansion in volume suggests the market is preparing for a larger move. A 20% advance from the $3.80 floor projects a target near $4.55–$4.60, an area that lines up with prior breakdown levels and moving average resistance.

A firm break above $4.20 would strengthen the case for that move. If the price slips below $3.70, the recovery attempt would weaken, opening the door to a return toward $3.30.