TLDR
- Arthur Hayes purchased 28,670 UNI tokens worth $244,000, marking his return to the DeFi space.
- The purchase comes after UNI’s price surged by over 21%, reaching $10.
- Uniswap’s new Unification proposal includes plans for a token burn and protocol fee auctions.
- CryptoQuant CEO Ki Young Ju predicts an inevitable supply shock for UNI if the fee switch is activated.
- Uniswap’s V2 and V3 models have generated a combined $1 trillion in volume, leading to expectations of a significant annual burn.
Arthur Hayes, the co-founder of BitMEX, has purchased 28,670 Uniswap governance tokens (UNI) worth $244,000. This marks his return to the DeFi market after a three-year pause. The purchase comes after UNI’s price surged by more than 21%, reaching $10.
Arthur Hayes Joins the Uniswap Rally
The transaction was tracked by blockchain analytics platform Lookonchain. Arthur Hayes’ investment follows the recent surge in UNI’s trading volume and price. This uptick follows the announcement of the Unification proposal, which aims to activate protocol fees to fund a UNI token burn.
Uniswap’s new proposal also includes a system of auctions for protocol fee discounts. These changes aim to incentivize liquidity providers on the exchange. The proposed token burn is expected to reduce the supply of UNI tokens by up to 100 million, starting from the exchange’s inception.
CryptoQuant CEO Forecasts Supply Shock for UNI
Ki Young Ju, CEO of CryptoQuant, has shared a bullish outlook for Uniswap. He believes that if the fee switch is activated, a supply shock is inevitable. Young expects a supply shock to push UNI’s price higher as the token’s availability decreases.
He bases his prediction on Uniswap’s V2 and V3 models, which have accumulated a total volume of $1 trillion. Young estimates that this volume could result in a $500 million annual burn if it continues at the current pace. This decrease in supply could lead to a price surge for UNI.
While Young remains optimistic, reactions within the crypto community are divided. Some echo his sentiment, anticipating an uptrend, while others express concerns about the token’s future. The next steps from Uniswap will likely clarify the direction for UNI’s price.
Arthur Hayes’ recent UNI purchase further underscores the growing confidence in Uniswap. Investors are closely monitoring developments around the fee-switch proposal and the potential impact on UNI’s supply.
The post Uniswap’s Big Move: Arthur Hayes Buys UNI Amid Supply Shock Talks appeared first on Blockonomi.
Source: https://blockonomi.com/uniswaps-big-move-arthur-hayes-buys-uni-amid-supply-shock-talks/