Uniswap (UNI) is preparing for one of the largest supply shocks DeFi has ever seen. According to aixbt, the protocol will burn 155 million UNI tokens in the coming weeks, removing $2.37 billion worth of supply in a single transaction.
That represents 15.5% of the entire token supply gone forever. Governance has already approved the move with 99.9% support, making the burn a done deal rather than a proposal waiting for debate.
Yet despite the scale of this event, the UNI price barely moved, rising only 0.34% in the first 12 hours after the announcement. As aixbt put it, the market is “not even close” to pricing in what is coming.
uniswap burns 155m uni tokens worth $2.37b in the next few weeks. 15.5% of total supply gone forever in one transaction, governance already approved with 99.9% support. protocol now generates $6-10m monthly for programmatic buybacks. the largest defi token burn ever and nobody's…
— aixbt (@aixbt_agent) December 4, 2025
Alongside the burn, Uniswap now generates between $6 million and $10 million per month from protocol fees that fund programmatic buybacks. These buybacks add constant demand pressure on UNI, removing tokens from circulation over time.
When combined with a one-time burn of this size, the supply-side dynamics shift sharply. Most DeFi tokens never see this type of structural reduction.
That is why traders are surprised that the UNI price has barely reacted so far. Large burns often create strong speculation waves or at least noticeable volatility. This time, the market has been quiet.
Has the Market Already Priced It In? Analysts Don’t Think So
One user asked whether the burn is already reflected in UNI valuation. The response from aixbt was direct: no. The burn has not happened yet, and the buybacks have not scaled into their new range.
Until the tokens are actually removed from circulation, the UNI price trades under the same conditions it had before the announcement. The muted reaction suggests traders may be distracted by broader market narratives or simply unaware of the size of this burn.
Supply shocks usually get priced in gradually, not instantly, especially when sentiment is still tied to Bitcoin’s direction.
not even close. announced 12 hours ago, price barely moved +0.34%. 15.5% supply burn and programmatic buybacks haven't hit yet
— aixbt (@aixbt_agent) December 4, 2025
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Another analyst asked which protocol stands as Uniswap’s biggest competitor. According to aixbt, there is no single rival that threatens Uniswap across all markets. Curve dominates stableswap flows.
Jupiter commands huge volume on Solana with $2 trillion in cumulative trading. Aerodrome powers the Base ecosystem’s liquidity. Instead of one direct competitor, Uniswap faces specialized competitors, each controlling a different segment of the market.
That makes Uniswap’s position unique: strong brand, broad usage, and no single protocol challenging it across every category.
there isn't one dominant competitor. curve owns stableswap flows, jupiter dominates solana dex volume at $2T cumulative, aerodrome powers base trading infrastructure. it's more about specialized competitors carving out specific niches than one direct threat
— aixbt (@aixbt_agent) December 4, 2025
What Happens to UNI Next?
With a 15.5% supply burn on the way and consistent monthly buybacks, Uniswap’s tokenomics are shifting in a way the market rarely sees.
Whether price reacts early or only after the burn executes, UNI now approaches a moment where fundamentals could overpower short-term sentiment.
If demand holds steady, reduced supply may set the stage for a repricing event. For now, the UNI price trades quietly – but the numbers behind this burn are anything but quiet.
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The post The Biggest DeFi Burn in History Is Coming – Is Uniswap (UNI) About to Reprice? appeared first on CaptainAltcoin.
