The UNI token has surged by over 15% to $6.81 after weeks of decline, driven by record trading volumes on the Uniswap decentralized exchange (DEX) and renewed attention on the contentious "fee switch" proposal.
Uniswap Achieves Peak Performance Metrics
Uniswap has demonstrated significant resilience and recovery, achieving peak activity that surpasses even the 2021 bull market:
- Record Fees: Uniswap produced a record $275 million in monthly fees in October, reflecting increased trading activity and improved features.
- Market Share: The DEX remains a dominant force, maintaining a 6.1% share of total DEX trading and serving as a key platform for both new and established token listings.
- Low Hype, High Value: Despite low market "hype," the Uniswap project is a crypto staple, leading many to view the UNI token as undervalued relative to the protocol's fundamental performance.
UNI's Value Proposition Hinges on the Fee Switch
The recent rally is strongly tied to speculation that the UNI token could be transformed into a revenue-sharing vehicle.
- The Proposal: The fee switch is a long-debated feature that would redirect a portion of the protocol's fees (currently absorbed entirely by liquidity providers) to UNI token holders.
- Polymarket Activity: Interest in the fee switch was reignited by a newly active market on Polymarket, which attempts to gauge the probability of its activation. While the probability for December activation is low (33%), it rises significantly to 73% by the summer of 2026.
- Whale Attention: Despite the long timeline and small overall volume ($56,000) on Polymarket, the pair saw whale activity, signaling serious interest from high-profile crypto influencers.
Rally Sustainability and Market Caution
While the rally is notable, the long-term sustainability of the price action is still in question:
- Lower Range Trading: Even with the 15% jump, UNI still trades near its lower range for the past three months, and its price has not fully reflected the protocol's revenue growth.
- Derivatives Decline: UNI Open Interest has fallen to $229 million from its earlier 2025 peak of over $391 million, suggesting that major derivative traders (whales) are currently overlooking the token.
- Mindshare Increase: Despite the caution from derivatives traders, UNI's mindshare increased by 44% in November, indicating growing community interest and discussion.
In summary, the UNI token is rallying on strong fundamentals, but its move to a consistently higher price range may depend on the eventual activation of the fee switch.
November 2025, Cryptoniteuae