$UNI has had a really rough day.
Around $7.7, the support levels at $9 and $8 have been smashed one by one. The market is probably starting to say again: UNI is done for!
But today, I actually want to talk about something a lot of people may have overlooked.
Arc.
Uniswap has launched v2, v3, v4, and UniswapX on Circle’s Arc.
And more importantly, the protocol-fee extension for Arc has officially gone live. Fees generated by v2/v3/v4 can flow into TokenJar and, through the existing mechanism, ultimately be used to burn UNI on mainnet.
What does this mean?
When we used to talk about UNI, many people only focused on one question: How much trading volume does Uniswap have?
But now there’s another link in the chain:
Trading volume → protocol fees → TokenJar → UNI burn.
That’s what makes $UNI increasingly interesting to me.
Of course, I’m not going to tell you right now that UNI will take off as soon as Arc launches.
There’s no need to.
No one knows yet how much real trading volume Arc can generate.
But the experiment has begun.
If stablecoins, institutional capital, and on-chain asset trading on Arc really take off, the market will get its first clear demonstration of how trading activity on a new chain can ultimately translate into UNI burns.
On top of that, whales have continued adding to their UNI positions during the recent pullback. Data shows that whales have added around 1.13 million UNI since September 28. But we should look at this objectively: whale holdings as a whole have yet to return fully to their early-September levels, so I wouldn’t spin this as “whales are going all in.”
But here’s the question.
With UNI down to $7.7 and market sentiment at its most pessimistic, we have an opportunity to ask: Has UNI’s story broken down, or are the people who bought between $6 and $10 simply taking profits?
Personally, I lean toward the latter.
There are just three things to keep an eye on:
Is real trading volume on Arc picking up?
How much will TokenJar actually collect?
Can UNI burns keep increasing?
If these three things start to materialize consistently, that’s when the market will truly realize how powerful $UNI ’s value-capture mechanism is.
And by then, who knows if UNI will still be in the $7 range.
So when others panic, I take a closer look.
Opportunities created by a drop rarely announce in advance whether they’re really opportunities!
#UNI #Uniswap #DeFi #Arc #ETH
Around $7.7, the support levels at $9 and $8 have been smashed one by one. The market is probably starting to say again: UNI is done for!
But today, I actually want to talk about something a lot of people may have overlooked.
Arc.
Uniswap has launched v2, v3, v4, and UniswapX on Circle’s Arc.
And more importantly, the protocol-fee extension for Arc has officially gone live. Fees generated by v2/v3/v4 can flow into TokenJar and, through the existing mechanism, ultimately be used to burn UNI on mainnet.
What does this mean?
When we used to talk about UNI, many people only focused on one question: How much trading volume does Uniswap have?
But now there’s another link in the chain:
Trading volume → protocol fees → TokenJar → UNI burn.
That’s what makes $UNI increasingly interesting to me.
Of course, I’m not going to tell you right now that UNI will take off as soon as Arc launches.
There’s no need to.
No one knows yet how much real trading volume Arc can generate.
But the experiment has begun.
If stablecoins, institutional capital, and on-chain asset trading on Arc really take off, the market will get its first clear demonstration of how trading activity on a new chain can ultimately translate into UNI burns.
On top of that, whales have continued adding to their UNI positions during the recent pullback. Data shows that whales have added around 1.13 million UNI since September 28. But we should look at this objectively: whale holdings as a whole have yet to return fully to their early-September levels, so I wouldn’t spin this as “whales are going all in.”
But here’s the question.
With UNI down to $7.7 and market sentiment at its most pessimistic, we have an opportunity to ask: Has UNI’s story broken down, or are the people who bought between $6 and $10 simply taking profits?
Personally, I lean toward the latter.
There are just three things to keep an eye on:
Is real trading volume on Arc picking up?
How much will TokenJar actually collect?
Can UNI burns keep increasing?
If these three things start to materialize consistently, that’s when the market will truly realize how powerful $UNI ’s value-capture mechanism is.
And by then, who knows if UNI will still be in the $7 range.
So when others panic, I take a closer look.
Opportunities created by a drop rarely announce in advance whether they’re really opportunities!
#UNI #Uniswap #DeFi #Arc #ETH