Recently, UNI's rebound strength has indeed been a bit disappointing. Don't worry, this is actually quite normal — from a technical perspective, it's just a correction cycle.

Previously, positive news such as governance proposals passing and token buybacks gave a boost, and UNI did experience a surge. But the problem is, these positives have been mostly digested. The short-term upward momentum has been exhausted, and now it’s entering a consolidation phase, which is very reasonable.

To be honest, UNI has always had a concern — the token’s value support isn’t very clear. Even as the ecosystem expands, the actual utility of the token hasn’t been fully demonstrated. This buyback mechanism is a serious effort by the project team to make up for that, trying to establish a solid foundation for the token’s value.

However, to be frank, buybacks may have limited short-term price impact. Think about it — the various accumulated holding costs are still there, and the market remains somewhat cautious about DeFi assets. The transmission from fundamentals to price takes more time to establish.

Interestingly, the buyback reflects the project team’s serious effort to improve the tokenomics model. If subsequent growth in trading volume, user activity, and locked-in value can be achieved, along with a continuous value accumulation mechanism, UNI’s long-term value foundation could gradually be solidified.

From an allocation perspective, in the current relatively calm market sentiment, including UNI as part of a long-term asset allocation is a quite rational choice. Instead of stressing over short-term fluctuations, it’s better to focus on the long-term layout driven by fundamental improvements, which is more prudent.