On-chain data on the Uniswap network pointed to a picture that was not moving in the same direction as the token price. While the total amount of tokens transferred through the network increased by 233% in the last three months, the number of transactions increased by 196%. On the other hand, the UNI price was at $ 2.92 at the time the news was prepared.
The divergence between price and network data has deepened
According to the data, the 7-day average net outflow for UNI on Binance reached 516,112 UNI. This figure represents a 755% lower net flow compared to the last three-month underlying average. In the same period, UNI reserves on the stock exchange decreased by approximately 6.8%.
While the on-chain transfer volume and number of transactions have increased strongly in the last three months, the UNI price has remained at $2.92, indicating a clear divergence between network usage and market price.
Uniswap is known as one of the decentralized exchanges running on Ethereum. On the platform, users can exchange tokens without the need for an intermediary. Latest data revealed that network usage has accelerated significantly, but this has not yet been reflected in prices to the same extent.
| Indicator | Data |
|---|---|
| Transfer volume change | 233% increase |
| Number of transactions change | 196% increase |
| Binance 7-day net flow | 516,112 UNI outputs |
| Binance reserve exchange | 6.8% decrease |
| UNI price | $2.92 |
Fee Switch regulation changed the supply structure
It is noteworthy that this increase in on-chain mobility coincided with the Fee Switch regulation introduced in Uniswap. The UNIfication proposal, which was passed with near-unanimous support, enabled the long-awaited system by directing a portion of transaction fees to the UNI buyback and burn mechanism.
Mini dictionary: Fee Switch means that a certain portion of the transaction fee in a protocol is transferred to the protocol treasury or a structure that supports the token economy, instead of going directly to liquidity providers. Buy and burn means taking a token from the market and removing it from circulation permanently.
It is considered that with this change, UNI has ceased to be a governance-oriented token and has a structure more linked to protocol revenues. While the total fee for Uniswap V2 transactions remains 0.30%, 0.25% of it goes to liquidity providers, and the remaining 0.05% is transferred to the protocol for burning.
The seemingly small 0.05% guidance per transaction stands out as a mechanism that could create a meaningful supply contraction over time, considering Uniswap’s scale.
Withdrawals from exchanges could narrow supply on the sell side
The data may indicate that some investors are starting to move UNI into their own custody solutions rather than short-term trading. The strong net outflow seen from Binance supports assessments that this may be due to a change in behavior beyond ordinary daily trading flow.
On the other hand, the UNI price remains approximately 18% below the three-month average of approximately $3.80. If the price lags behind while network activity increases, it may indicate a period in which the supply side of the market is tight but demand has not yet strengthened to the same extent.
The news also stated that net sequencer fees originating from Unichain will be directed to the burning system. The rate of supply reduction is expected to increase over time if more pools come online and new fee sources are added.
