Uniswap price exceeded US$4.28, ranking first in DEX trading volume

UNI broke through the monthly rising triangle, setting a new high since June.

Uniswap's UNI token finally broke through after a month of rising triangle consolidation, and the price climbed to the highest level since June. Over the past week, Uniswap's transaction volume was more than twice that of the second-ranked decentralized exchange (DEX), and its V4 version has surpassed that of the V3 version for the first time. Uniswap transaction volume on Robinhood Chain exceeded $10 billion in less than a month. Founder Hayden Adams refuted the suggestion that fees for the new V4 agreement would reduce liquidity providers 'profits. As of writing, UNI's price on Coinbase was $4.287, up 7.55% during the day after breaking through the triangular pattern that has suppressed it since mid-July. The breakthrough coincides with Uniswap's latest protocol version surpassing all other DEXs in weekly transaction volume, its Robinhood Chain deployment exceeding $10 billion in transaction volume, and founder Hayden Adams stepped forward to defend its newly activated fee model. UNI's current price level is the same as before the June sell-off.

Breakthrough trend that took a month to build

The pattern behind this price fluctuation is a rising triangle. Since mid-July, UNI prices have encountered resistance at horizontal resistance levels around $3.88 many times, but the low point of each correction has gradually increased, squeezing prices into an increasingly narrow range until they finally choose direction. The K-line broke through this pattern on Thursday, and prices were well above that resistance, touching $4.333 at one point, before falling back slightly. The triangles formed in an established uptrend, as is the case this time, are often seen as a rest signal before the trend continues, rather than a top pattern. The 14th Relative Strength Index (RSI) was 72.44. Above 70 is usually regarded as an overbought area, which shows from another perspective that this round of rise is fast and a brief respite or correction is normal. But this in itself is not a signal of a reversal in trend. Current prices are also well above their 50-day moving average of $3.452, which has been tilting upward since early July. This wide spread not only confirms the strength of the current trend, but also indicates that prices are in a relatively "stretched" state. In terms of transaction volume, effective cooperation was not formed. Trading volume on Thursday was 909,950 lots, compared with 895,370 lots on the 20th day, just slightly above average. The highest-volume column on the chart still belongs to the rebound from its lows in mid-June, not this breakthrough. A resistance breakthrough without a significant amplification in trading volume is usually more likely to occur, so this deserves close attention rather than easily ignored.

Key levels to determine the next trend

As the resistance level of $3.88 was breached, it has transformed into the first line of support. If prices retract and stabilize here, it will strengthen the current bullish structure rather than destroy it, as the transition of old resistance to support is a common phenomenon after effective breakthroughs. If this support breaks below, the rising triangle trend line below and the 50-day moving average (approximately $3.45) will constitute a deeper support area. On the upside side, the high of US$4.333 set on Thursday is a key resistance level in the near term. If the daily closing price stays above this level, the possibility of a continuation of the upward trend remains. On the contrary, if the closing price falls below US$3.88 again, it will be a warning signal that the breakthrough has failed, indicating that UNI needs to absorb the overbought pressure before it can rise again.

Uniswap transaction volume is more than twice that of the second-ranked DEX

According to DefiLlama, the total transaction volume for all versions of Uniswap in the past seven days reached US$11.62 billion, more than twice that of the second-ranked protocol. In Uniswap's own weekly segmentation data, the transaction volume of its latest version V4 exceeded that of the old version V3 for the first time, and the two together accounted for the vast majority of the total.

Robinhood Chain's trading volume exceeded US$10 billion in less than a month

According to DefiLlama, the Robinhood Chain network built by Robinhood for on-chain transactions has generated more than US$12.5 billion in transactions through the Uniswap protocol in less than a month. Among them, approximately US$3.2 billion was contributed in the past week alone. This means that this chain, which was launched in early July, currently accounts for nearly a quarter of Uniswap's total transaction volume. This speed is significant because it shows that Uniswap's transaction volume growth is not just coming from the Ethereum main network. Today, a large proportion of transaction volume flows to emerging chains with lower transaction costs, and Robinhood Chain relies on consumer-level transaction applications with a large user base.

Launches Feature Aggregates Multiple Project Launch Platforms

Uniswap has also launched a new feature tab called "Launches", which integrates tokens from third-party project launch platforms such as Bankr, Pons, and Long into one view. The purpose is to allow users to browse new project launch information from multiple platforms without leaving the Uniswap interface. The feature was first launched in beta on Robinhood Chain and will later support other networks. For Uniswap, the move aims to make it the preferred place for traders to discover new tokens, rather than just a place to trade existing ones.

Adams responds to fee reduction controversy

The only point of contention that emerged this week related to income distribution. After Uniswap governance voted to approve activating protocol fees in selected V4 funding pools across multiple chains, some users believed the change would erode liquidity providers 'earnings. Uniswap founder Hayden Adams dismissed the statement as "panic and misunderstanding." His position is that the 5 basis points (approximately 0.05%) agreement fee per transaction is an additional charge to, and not a deduction from, the liquidity provider (LP) income. Therefore, the widely circulated claim of "LP profits cut by 25%" is based on a wrong assumption. He called on users to stop spreading this claim. The activation of fees is a key point worthy of attention in the future. The governance layer of Uniswap has been debating whether to start protocol-level fees for years, but has never been able to implement them. This round of approval is the first attempt to activate the fee on a large scale in the V4 funding pool. Whatever the controversy over the calculation of LP gains, the mechanism now means that some trading revenue will flow to the agreement itself, rather than just liquidity providers, something UNI holders have long awaited. How this revenue will be handled and whether it will be distributed directly to token holders will be questions that need to be answered in the next governance cycle.