How Does On-Chain Data Analysis Reveal Uniswap's Dominance in DeFi?

Uniswap's dominance reflected in $50.5B TVL and $59B market cap

Uniswap has established itself as a dominant force in the decentralized exchange (DEX) space, with impressive financial metrics that highlight its market position. Current data shows Uniswap commanding a significant $50.5 billion in total value locked (TVL) while maintaining a market capitalization of $59 billion. This places the protocol among the most valuable projects in the cryptocurrency ecosystem.

The protocol's financial strength becomes even more apparent when examining its market metrics:

Uniswap's governance proposal to activate protocol fees and burn approximately 100 million UNI tokens (worth $940 million) represents a strategic move to enhance token value. This would create an annual supply reduction of 2.5%, directly linking network activity with token scarcity. The proposal also aims to consolidate Uniswap Labs and the Foundation under a unified operational model.

With over 310,000 members in its DAO overseeing a treasury of $1.6 billion, Uniswap has built substantial governance infrastructure. The protocol's combination of high TVL, strategic tokenomics, and community governance demonstrates why it continues to maintain its dominance in the DEX landscape.

On-chain analysis reveals 25.83% of UNI tokens in circulation

Recent on-chain data analysis provides fascinating insights into Uniswap's token distribution dynamics. Despite UNI tokens being fully unlocked, only a fraction is actively trading in the market. The current analysis reveals that merely 25.83% of the total UNI supply is in actual circulation, representing approximately 258.3 million tokens out of the 1 billion maximum supply.

This circulation pattern reflects significant token concentration among key stakeholders. The distribution structure can be clearly visualized:

The community treasury accounts for a substantial portion of the non-circulating supply. This concentration pattern has important implications for UNI's market behavior and liquidity. With the majority of tokens held rather than traded, price volatility may be amplified during significant market events, as evidenced by recent price movements from $10.40 to $5.77 in October 2025.

The current circulating supply ratio provides crucial context for investors analyzing UNI's market cap, which stands at $4.53 billion based on the $7.19 price. However, the fully diluted valuation reaches $7.19 billion when accounting for all tokens. This disparity creates a unique market dynamic where perceived scarcity contrasts with potential future supply increases should major holders decide to liquidate their positions.

Proposed 'UNIfication' to burn 100M UNI and implement protocol fees

Uniswap's governance recently introduced a transformative proposal called "UNIfication," which aims to dramatically reshape the protocol's tokenomics and governance structure. This initiative includes burning 100 million UNI tokens from the protocol's treasury and activating protocol fees for the first time since 2020. The proposal represents a significant shift in Uniswap's economic model, designed to align incentives across the ecosystem and position the protocol as the default decentralized exchange for tokenized value.

Following the announcement, UNI's price surged by approximately 30%, demonstrating market enthusiasm for the changes. The proposal includes merging Uniswap Labs and Foundation under a unified growth model to streamline development efforts.

The fee mechanism will establish a programmatic UNI burn system, effectively turning Uniswap v4 into an aggregator that any platform can integrate. Market data shows UNI currently trading at $7.19, with a market cap of approximately $4.53 billion. The protocol's daily trading volume demonstrates significant liquidity, providing substantial potential fee generation if the proposal passes.

FAQ

Is Uni Coin a good investment?

Yes, UNI shows promise as a long-term investment. Its role in Uniswap's governance and potential for fee sharing make it attractive. Projections suggest significant growth by 2030.

What is Uni Coin?

Uni Coin is a next-generation cryptocurrency issued by Unicoin, Inc., backed by real estate and high-growth company stakes. It's a separate investment from Unicoin, Inc. shares.

How much is 1 Uni worth?

As of November 2025, 1 UNI is worth approximately $5.76. This price reflects current market conditions and may fluctuate.

Can Uniswap reach $100?

While Uniswap has potential, reaching $100 seems unlikely. Analysts predict a maximum of $45.74 by 2025, close to its all-time high of $44.92 in 2021.