Arthur Hayes Buys UNI as CryptoQuant CEO Says Supply Shock ‘Inevitable’ for Uniswap

BitMEX co-founder Arthur Hayes has made a significant purchase of the Uniswap governance token UNI, following a three-year pause. This follows the DeFi token’s surge of over 21% yesterday, which saw it reach as high as $10. 

Arthur Hayes Buys Uniswap Again

Blockchain tracker Lookonchain, in an x-post, has reported a transaction involving former Bitmex CEO Arthur Hayes, who purchased 28,670 tokens worth $244,000 in a single transaction. The purchase comes shortly after Uniswap unveiled the Unification proposal, a joint effort between Uniswap Labs and the Uniswap Foundation to activate protocol fees on the network to fund a UNI token burn.

Interestingly, about 100 million tokens are scheduled for a retroactive burn, counting from the exchange’s inception. Aside from the token burn, the Unification proposal also features plans to launch a system of auctions of protocol fee discounts. This fee-switch system is expected to further increase rewards for liquidity providers, incentivizing them to participate more actively on the exchange. 

 Following the announcement, UNI experienced a surge in volume, and the price rose sharply. Thus, Hayes’ purchase of UNI has further reinforced investors’ renewed interest in Uniswap. 

Cryptoquant CEO Predicts Supply Shock For UNI

Ki Young Ju, the CEO of the on-chain analytics platform CryptoQuant, has expressed bullish sentiment toward Uniswap following the exchange’s Unification proposal. Young, in an X post, explained that a supply shock is inevitable for the governance token if the fee switch is activated, and this could cause the price to go parabolic.

The CEO pinned his outlook on the performance of Uniswap models V2 and V3, which have a $1 trillion year-to-date (YTD) volume, meaning a $500 million annual burn, assuming volume holds. Supply shock causes a sudden, drastic change in the supply of a token, leading to either a sharp increase or a sharp decrease in its value.

Young believes this time, Uniswap is gearing up for a bullish move. Meanwhile, crypto community members are divided on what this could mean for Uniswap, with some echoing the CEO’s sentiment, believing an uptrend is on the horizon. At the same time, others share a more pessimistic outlook.