Uniswap (UNI) surges 5.33% to $7.58 on rising transaction volume and new incentives

Uniswap (UNI) has recently gained significant attention following a 5.33% price increase, bringing its value to $7.58. This surge is backed by notable shifts in both usage patterns and technical indicators, suggesting a potential breakout for the token.

On-chain activity for Uniswap shows a 32% increase in transaction volume, despite a 4.1% drop in active addresses. This divergence is often seen as a bullish signal, indicating that while fewer wallets are active, those that are participating are making larger or more frequent transactions. This could be due to new incentives or protocol upgrades, such as the recent rollout of UniswapX’s zero-gas limit orders. This innovation allows users to execute trades without gas fees by combining on-chain and off-chain liquidity, potentially setting a new standard for decentralized exchanges (DEXs) and reducing barriers for mainstream users.

As the adoption of UniswapX increases, the demand for UNI tokens, which serve as the governance and fee-sharing utility, could rise accordingly. The fully diluted valuation (FDV) of UNI is currently pegged at BTC 68,987.85, showing potential for growth if protocol usage scales.

However, there are some challenges. Large holder netflows, a proxy for whale activity, have fallen 93% in the past month, indicating reluctance among major investors. Additionally, resistance between $7.60 and $7.80 remains a short-term obstacle, as shown in liquidation heatmaps. Despite this, retail investors seem undeterred. A 50.6% spike in exchange outflows, paired with a 19.5% drop in inflows, suggests that more UNI is being moved off exchanges, likely into cold wallets or DeFi protocols for staking. This behavior typically points to reduced sell pressure and a bullish accumulation phase.

Technical indicators also support a gradual climb for UNI. Funding rates remain modestly positive at +0.0062%, indicating a slight long bias without an overleveraged environment. This creates a foundation for a more sustainable rally, as it lowers the risk of sharp liquidations. If UNI pushes past the $7.80 resistance zone, it could ignite a wave of short liquidations and momentum buying, potentially accelerating price action toward higher levels. However, to maintain this trajectory, Uniswap must continue delivering value and keep larger investors engaged.

Uniswap stands at a pivotal moment. With innovative product rollouts like zero-gas trading, rising transaction activity, and decreasing exchange supply, the fundamentals are aligning for a bullish move. Breaking resistance and restoring whale confidence will be key to turning this rally into a sustained uptrend. Investors should monitor price action around the $7.6–$7.8 zone closely. A breakout could signal the start of a larger move, making UNI a token to watch, especially in a market hungry for strong DeFi narratives.