Uniswap rises 8% after burning 100 million UNI tokens

Source: PortaldoBitcoin Original Title: Uniswap rises 8% after burning 100 million UNI tokens Original Link: The native token of Uniswap recorded an increase of over 8% after the approval and execution of one of the largest burns seen in the cryptocurrency market. On Saturday night (27), 100 million UNI, valued at the time at US$ 592 million, were sent to a burn address, meaning they will never enter circulation again.

The UNI price started to rise a few hours after the burn, which took place around 17:00 UTC (14h00 in Brazil), when the decentralized exchange’s native token went from US$ 5.90 to US$ 6.40, a price maintained at least until this late afternoon.

The initiative follows a growing trend among major crypto projects to adopt deflationary mechanisms, such as buybacks and burns, to reduce selling pressure and support prices. In the case of Uniswap, the community approved the proposal with 99.9% support, with more than 125 million UNI votes in favor.

With this decision, protocol fees began to be directed toward continuous token burns, creating a deflationary cycle as platform usage increases. After the operation, the value of UNI held in the treasury decreased from US$ 2.1 billion to US$ 1.6 billion.

The market reacted positively, with UNI experiencing a significant increase in traded volume and market capitalization, reflecting higher on-chain activity and capital inflow.

Days earlier, the Uniswap community had approved transforming UNI from an essentially governance token into an asset with clear value generation mechanisms, aligning economic incentives, governance, and protocol development.