Uniswap breaks $4 as whale buys and burns lift UNI 10%

UNI broke above $4 for the first time in weeks as whale accumulation, record token burns and rising network activity converged.

Uniswap's UNI rose more than 10 percent to break above $4, driven by institutional accumulation, record burns and rising network activity. Daily trading volume climbed more than 20 percent to about $521 million, making UNI the second-best performer among top-capped DeFi protocols after Aave.

An institutional wallet withdrew more than 222,000 UNI worth over $960,000 after eight months of inactivity, lifting its holdings to 4.837 million tokens valued at $22 million, Arkham data shows. All the tokens left the Coinbase wallet, and the position was up more than 7.32 percent in 24 hours as of press time.

Three whale wallets moved 146,000 UNI worth $647,000 from Upbit's hot wallet to cold storage, while 47,563 UNI costing $209,000 transferred from Binance to market maker Wintermute. The same wallets sold 9.6 million POL worth over $1 million, shifting capital toward UNI and away from Polygon.

UNI faces resistance in the $4 to $4.60 zone, where bears supplied $2.17 million against $1.26 million from bulls. A hold above the range top would extend the uptrend, while a loss of $3.22 support could pull the token back into its prior range.

Record burn cuts supply as TVL climbs

Uniswap recorded its biggest daily burn in dollar terms, about $590,000, on Aug. 21. Ethereum contributed $267,000 of that total, while Base and Robinhood Chain accounted for $165,000 and $87,000, respectively. The same week saw the second-highest daily burn of 150,000 UNI tokens, reducing circulating supply and supporting the price move.

The burn acceleration follows a surge in liquidity on Robinhood Chain, where total value locked hit $100 million after a 100 percent monthly increase, according to Token Terminal. The expansion strengthens UNI's fundamentals even as its market structure lags its on-chain metrics.

Binance's top traders held 71.2 percent long positions against 28.8 percent short at press time, pushing the long/short ratio to 2.47, CoinGlass data shows. The 90-day spot taker cumulative volume delta remained taker-buy dominant, indicating buyers kept executing aggressive market orders through August's correction.

UNI's transfer count on Binance jumped from 8,570 to 24,300, a near threefold increase in network activity. The token is testing the nine-period exponential moving average on the four-hour chart, pointing to a short-term loss of bullish momentum, though it remains well above the daily equivalent.

The divergence between strong demand and bearish supply at the $4 to $4.60 zone sets up a test of whether buyers can absorb selling pressure. If UNI holds above the range top, the uptrend extends; a break below $3.22 would open the door to a correction toward the $2.78 support.

This article is for informational purposes only and does not constitute investment advice.