UNI breaks through the $6 mark, 100 million tokens burning governance proposal ignites new expectations for Uniswap's rise.

Uniswap (UNI) price has recently experienced a strong pump, successfully breaking through the 6 dollar mark under the influence of governance voting, which has sparked widespread follow on the valuation of UNI Token. Data shows that UNI rose approximately 17.75% on Saturday, and although it saw a slight pullback on Sunday, the overall trend remains robust, with the price maintained above 6 dollars.

The core catalyst for this pump comes from the “UNIfication” governance proposal that the Uniswap community is promoting. This proposal initiated on-chain voting on December 20, and has now reached the legal voting threshold, set to officially conclude on December 25. Although the voting has not yet fully ended, the market has already priced in its potential impact. When the voting started, the price of UNI was approximately $5.30, and it quickly rose to $6.16, with a cumulative rise of over 16%.

The key content of the UNIfication proposal lies in the introduction of a protocol fee mechanism, with the related revenue used to burn UNI Tokens. This mechanism will initially be implemented in Uniswap v2 and some v3 liquidity pools. In addition, the proposal includes a one-time retrospective burn of 100 million UNI, simulating the amount of Tokens that should theoretically have been burned if the protocol fees had existed since the token's issuance. This design significantly strengthens the deflationary expectations of UNI and is seen as a long-term positive.

From a technical perspective, the UNI daily closing price stands firmly above 5.97 USD, re-establishing a bullish structure. The demand imbalance zone formed between 5.33 USD and 6.05 USD may be tested again during a short-term pullback. Momentum indicators show that bulls still have the advantage, but volume-related indicators suggest signs of slowing buying strength.

The liquidation heat map shows that there is a significant concentration of liquidity in the range of 5.60 dollars to 5.86 dollars, and the price has a high possibility of short-term pullbacks to this area. For traders focusing on the price trend of Uniswap, the UNI token burning mechanism, and the impact of DeFi governance proposals, waiting for pullback confirmation of support before positioning may be a relatively prudent strategy. If the price effectively breaks below 5.33 dollars, the current bullish logic needs to be reevaluated.