TLDR
- Arthur Hayes bought 28,670 UNI tokens worth $244,000, marking his return to the DeFi space.
- The purchase comes after UNI’s price surged over 21% to hit $10.
- Uniswap’s new Unification proposal includes plans for a token burn and auctions with protocol fees.
- 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 volume of $1 trillion, leading to expectations of a significant annual burn.
Arthur Hayes, co-founder of BitMEXhas purchased 28,670 Uniswap governance tokens (UNI) worth $244,000. This marks his return to the DeFi market after a three-year hiatus. The purchase comes after UNI’s price rose more than 21% to hit $10.
Arthur Hayes joins the Uniswap rally
The transaction was tracked by the blockchain analytics platform Lookonchain. Arthur Hayes’ investment follows the recent rise in UNI’s trading volume and price. This increase 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 stimulate liquidity providers on the exchange. The proposed token burn is expected to reduce the supply of UNI tokens with up to 100 million, from the start of the stock exchange.
CryptoQuant CEO predicts supply shock for UNI
Ki Young Ju, CEO of CryptoQuant, has shared a bullish outlook for Uniswap. He believes that if the toll 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 V2 and V3 models, which have accumulated a total volume of $1 trillion. Young estimates that this volume could result in an annual burn of $500 million if it continues at its current rate. This reduction in supply may lead to a price increase for UNI.
While Young remains optimistic, reactions within the crypto community are divided. Some echo his sentiment and foresee an upward trend, while others express concern about the token’s future. The next move from Uniswap is likely to clarify the direction of UNI’s price.
Arthur Hayes’ recent UNI purchase further underlines the growing confidence in Uniswap. Investors are closely following developments around the fee change proposal and the potential impact on UNI’s offering.
