Uniswap is one of the altcoins that has risen the most in the last week, reaching two-year highs.
According to data from CoinMarketCap, the price of Uniswap (UNI) has risen by over 43% over the past 7 days. At the time of writing, UNI is trading at around $11 per token, a value the cryptocurrency last saw in March 2022.
The bullish momentum that Uniswap is currently experiencing, seems to be raised by the new proposal to improve the protocol introduced by its developers to optimize its governance and staking mechanism.
The proposal, put forward by Uniswap Foundation leader Erin Koen on Friday 23, calls for a reward for UNI holders who have participated in staking the token.
Before Koen presented this governance proposal, UNI was trading at around $7 per token. Within hours, the price of this cryptocurrency had skyrocketed by almost 70% on the market, after the governance proposal became known through social media.
UNI exceeds $11 dollars
Uniswap, the 40th largest crypto asset by market cap, has gained more than 6% in the past week after spending several months trading between $7 and $XNUMX per unit.
At the time of writing, Uniswap's price remains bullish, breaking the $11 per token barrier. As mentioned at the beginning, UNI has not seen this value since 2022.
Source: CoinMarketCap
Uniswap’s market cap also rose by almost 7%, according to data from CoinMarketCap. Currently, the market value of Uniswap’s circulating supply is $6.600 billion. However, UNI’s trading volume on the market has decreased significantly compared to the previous day’s data.
According to the platform, the trading volume of this token is about $460 million, 58% less than the volume traded on Sunday.
Uniswap's new governance proposal
The governance proposal presented by Koen seeks to update and strengthen the governance mechanism of the DeFi protocol.
On X, the Uniswap Foundation explained that Koen’s proposal focuses on rewarding UNI holders who have “staken and delegated their tokens” through the staking system, in order to incentivize active, engaged, and thoughtful staking of UNI tokens and ultimately strengthen and invigorate decentralized governance and the protocol at large.
“Specifically, we propose updating the protocol so that its fee mechanism rewards UNI token holders who have delegated and staked their tokens,” the Uniswap Foundation leader wrote in the governance proposal.
An instant vote for this proposal will take place on March 1, while a chain vote will take place on the 8th.
In addition to the recent governance proposal to optimize staking, Uniswap developers also recently revealed that the launch of its next version, Uniswap v4, will take place in the third quarter of this year, following the implementation of Ethereum’s Dencun upgrade on the mainnet.
This news also had a positive impact on the price of UNI, which rose by 17% after its publication.
Continue reading: Uniswap V4: Developers schedule new update for Q3
