Arthur Hayes Acquires UNI as Analysts Warn of Potential Supply Shock

• Arthur Hayes’ $244K UNI purchase signals renewed institutional interest in Uniswap.
• Uniswap’s Unification proposal could trigger a 100M token burn and fee-based rewards.
• CryptoQuant’s CEO warns a UNI supply shock is likely if protocol fees are activated.

BitMEX co-founder Arthur Hayes has re-entered the Uniswap market with a fresh purchase of the decentralized exchange’s governance token, UNI, marking his first known acquisition in three years. According to on-chain tracker Lookonchain, Hayes acquired 28,670 UNI tokens worth approximately $244,000 in a single transaction. The move follows a market rally that pushed the token’s price above $10, gaining more than 21% in a single day.

The renewed buying interest came shortly after Uniswap introduced its Unification proposal, a joint initiative between Uniswap Labs and the Uniswap Foundation. The plan includes activating protocol fees on the network, designed to support a retroactive burn of about 100 million UNI tokens since the exchange’s inception. The proposal also outlines the introduction of a new auction mechanism offering protocol fee discounts to liquidity providers, aiming to improve participation and capital efficiency across trading pools.

Following the announcement, Uniswap recorded an increase in trading volume, while UNI extended its upward momentum, climbing over 18% on Wednesday. Hayes’ transaction has since drawn attention from market participants tracking institutional and early-adopter behavior in decentralized finance (DeFi) markets.

CryptoQuant CEO Foresees Imbalance in UNI Supply

Amid this renewed interest, CryptoQuant CEO Ki Young Ju stated that a supply shock for UNI could be unavoidable if the Unification fee switch is implemented. In a post shared on X, Ju explained that Uniswap’s models V2 and V3 have generated roughly $1 trillion in year-to-date trading volume. Based on these figures, he estimated that a sustained burn mechanism could remove about $500 million worth of UNI annually, substantially reducing available supply.

A supply shock typically refers to an abrupt change in a token’s circulating availability, often leading to heightened volatility. Ju’s analysis suggests that the proposed fee activation could limit token supply while maintaining demand through protocol activity.

The developments have placed Uniswap under closer observation from both traders and on-chain analysts as the DeFi sector experiences renewed activity. While market participants remain divided on the long-term impact, recent moves by high-profile investors and protocol-level adjustments have positioned UNI as one of the most actively discussed tokens in the current cycle.