#数字资产市场动态 Thoughts on the @UNI@ 100 million token burn: Why is the market still sleeping?

This move was indeed a big one—burning 100 million UNI tokens directly from the treasury, causing the market cap to evaporate by $590 million instantly. The voting results were even more astonishing: 99.9% approval rate, with founder Hayden Adams specially posting a celebratory message. But here’s an interesting paradox: despite the positive news, the token price hardly moved.

Looking at the 4-hour chart, UNI has retreated from the recent high of $6.537 and is now hovering between $5.8 and $5.9, with support at $5.6 below. After options expiration and the holiday overlap, market replenishment is inevitable, and short-term volatility is unavoidable. In my opinion, it has the potential to surge to $7, and the medium-term outlook remains optimistic.

But have you ever wondered why the market didn’t react to the burn?

The key point is this: the protocol fee switch for UNI, which should have been enabled back in 2018, was only turned on now. Once activated, it means that tokens can be automatically repurchased and burned every year, theoretically reducing the supply by 5%-10% annually. Sounds fantastic, right?

The problem is—no matter how good the burn mechanism is, without new funds continuously entering to increase liquidity, the market simply won’t buy in. Ultimately, the burn might just become a self-consolation ritual.

My biggest concern now is: after the positive news is realized, the market actually declines, and in the end, it’s just burning tokens from their own pockets.

$BTC