UNI price increases by 5% after Galaxy Digital shifts 5 USD

UNI – the flagship digital asset of the Uniswap ecosystem – has recorded a 5% increase over the past 24 hours. This upward trend occurred shortly after Galaxy Digital transferred $5 million worth of UNI across two exchanges, Binance and CoinShares.

Galaxy Digital transfers $5 million UNI to Binance and CoinShares

According to analysis from OnchainDataNerd on X platform, Arkham Intelligence data shows that Galaxy Digital withdrew 292,000 UNI, worth approximately $1.83 million, from Binance. Immediately afterward, a wallet linked to Galaxy Digital continued to transfer 492,500 UNI – equivalent to about $3 million – to a wallet labeled as owned by CoinShares.

The total value of UNI transfers between Binance and CoinShares approaches nearly $5 million. Unlike previous times when Galaxy Digital deposited large amounts of UNI onto exchanges, this transaction indicates internal transfers between organizations.

Such transactions between Galaxy Digital and CoinShares are quite common in the cryptocurrency exchange-traded product (ETP) sector, often serving purposes such as rebalancing portfolios, creating new ETP shares, or facilitating capital inflows.

Typically, these activities are viewed as positive signals from organizations, reflecting a demand to access UNI in a regulated and legitimate manner.

Immediately, the transaction had a positive impact on UNI’s price. Over the past 24 hours, Uniswap’s price increased by 5.02% to $6.13; at the same time, daily trading volume also rose by 57.4% to $571.4 million, reflecting renewed investor interest.

Investors forecast negative outlook for Uniswap revenue

Alongside the price rally and strong interest from retail investors, investor Omar on X offered a cautious perspective on Uniswap’s valuation. According to Omar, UNI is currently trading at approximately 240 times the total fees expected after activating the fee switch mechanism, indicating that UNI is valued much higher than other revenue-generating crypto protocols.

It is known that the “fee switch” is a new governance feature of Uniswap, allowing a portion of revenue to be redistributed to UNI holders through a buyback and burn mechanism. This helps increase UNI’s value, as opposed to the old model where all fees belonged to liquidity providers.

Uniswap in the Post-Fee Switch Era | Source: OmarNote that the fee switch is part of the “UNIfication” proposal, which includes burning 100 million UNI tokens to balance interests among users, liquidity providers, and governance.

After activating the fee switch, Uniswap only collects about $23 million in protocol fees annually, while its fully diluted valuation (FDV) remains at $5.4 billion. With an issuance of 20 million UNI tokens this year, Omar estimates that Uniswap could incur losses of up to $100 million. This forecast suggests that the protocol is spending more value than it is earning in fees, even after implementing the fee switch.

UNI price outlook for January

According to CryptoRank data, UNI’s price has increased by 9.7% since the beginning of January. Over the past five years, UNI has consistently shown volatile price performance in the first month of the year: an average increase of 37%, with a peak of 243.4% in January 2021; the following year, it declined by 30.9%, but recovered 27.3% in January 2023. However, in January 2024 and 2025, UNI decreased by 16.8% and 11%, respectively. With a 9.7% rise in January 2026, UNI is expected to continue its growth in the near future.

Additionally, Uniswap’s price has often performed positively in the first quarter of recent years. If this trend continues, analysts forecast UNI could soon reach the $10 mark – a completely achievable target, especially considering it previously hit a cycle high of $19.38.