- UNI rallied 15% after a governance proposal expanded the fee switch across multiple chains.
- Fee switch upgrade could generate $27 million yearly revenue and increase token buybacks.
- Technical momentum and institutional interest support potential further gains for UNI in 2026.
Uniswap — UNI, jumped roughly 15% in 24 hours on February 26, 2026, leading the crypto market. Traders reacted quickly to a governance proposal that could reshape revenue collection across the protocol. Bitcoin gained around 4.7% while Ether rose 8.5%, but UNI outperformed both. The proposal aims to expand the fee switch to eight additional blockchains, signaling potential long-term benefits for token holders.
Fee Switch Expansion and Revenue Potential
The fee switch is a mechanism that diverts a portion of trading fees from liquidity providers to the protocol treasury. These funds are then used for UNI token buybacks and burns, increasing scarcity and potentially supporting price. The new governance proposal would extend the fee switch to multiple layer-2 chains, expanding revenue streams significantly. Under the proposal, Uniswap would replace the current pool-by-pool model with a tier-based v3 system.
Fees would apply automatically across all liquidity pools. The v3OpenFeeAdapter would automate fee collection for new pools, eliminating the need for separate governance approval for each. Analysts estimate this could add roughly $27 million in annualized revenue. Combined with the current $34 million annual burn, the protocol could manage nearly $61 million annually for token buybacks.
The fee switch has already burned more than $5.5 million in UNI since late 2025. That implies a $34 million annualized burn at current trading levels. Gross profit in Q1 2026 reached about $3.12 million, compared to near zero in prior periods. The mechanism clearly strengthens Uniswap’s revenue model while enhancing tokenomics.
Price Action, Technical Levels, and Market Sentiment
UNI climbed to intraday highs above $4.00, with daily trading volume spiking roughly 62%. Despite the rally, the token remains negative for the week, month, and year-to-date. It trades below its 50-day, 100-day, and 200-day simple moving averages. Technical indicators suggest room for further gains. The daily RSI sits near 56, signaling momentum without overbought pressure.
The MACD histogram shows bullish momentum, and $3.20 acts as a potential local bottom. Bollinger Bands place UNI above the upper band at $3.81, while breaking above the 50-day SMA could shift attention to the 100-day SMA near $5.09. Key support levels are $3.48 and $3.00. Institutional interest adds weight to the rally. BlackRock purchased UNI tokens to facilitate trading of its BUIDL tokenized Treasury fund.
Open interest in UNI is rising, and funding rates are positive, reinforcing bullish sentiment. The combination of revenue expansion, strong technicals, and institutional backing positions UNI for potential upside in 2026. Uniswap’s fee switch expansion promises meaningful revenue growth for the protocol. The move strengthens tokenomics and adds buyback potential for UNI holders.
