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Uniswap's UNI Surges as Crypto Market Awaits FOMC Decision

While the market waits for the FOMC decision, UNI stands out with a sharp price jump after an upbeat analysis and a growing deflationary effect.

By Mike Hesp
• 2 min read
Uniswap's UNI Surges as Crypto Market Awaits FOMC Decision

Key Takeaways

  • Bitcoin fell below $65,000 ahead of the FOMC decision, while the CoinDesk 20 Index lost 1.2%.
  • The market does not expect a rate change and is mainly watching the press conference from new Fed Chair Kevin Warsh.
  • UNI jumped 20% in 24 hours after a bullish Standard Chartered forecast and a fee switch that removes tokens from circulation.

Bitcoin is under selling pressure ahead of the Federal Open Market Committee's (FOMC) rate decision, the first under new Fed Chair Kevin Warsh. The biggest cryptocurrency slipped below $65,000 (€56,100) after trading close to $67,000 (€57,800) earlier. The broader market, measured by the CoinDesk 20 Index, fell 1.2%, with nearly all tokens losing ground.

FOMC Decision and Market Reaction

The market is pricing in no change to interest rates at this meeting, with attention mostly on Warsh's press conference. He is known for his critical stance on frequent press conferences and detailed forecasts, which has raised expectations around his view on inflation. At the same time, trading activity has cooled off: futures volume dropped 20% to $165 billion (€142 billion), and open interest fell 2.3% to $110 billion (€94.9 billion). Liquidations dropped sharply, pointing to a relatively calm market ahead of the decision.

UNI Token Rises on Bullish Forecast

What stands out is the price jump in Uniswap's UNI token, which rose 20% in 24 hours and is now on its longest winning streak since August 2023. The token is trading around $2.75 (€2), more than making up for earlier losses in June. This rebound follows an upbeat analysis from Standard Chartered, which set a price target of $100 (€86) in 2030. The bank bases this on the expected growth of tokenized real-world assets that will be traded through DeFi platforms like Uniswap.

Since late 2025, Uniswap has had a fee switch in place that uses part of trading fees to buy back and burn UNI tokens. This mechanism has already removed more than 106 million tokens from circulation, which is more than 10% of the supply. As a result, UNI is shifting from a pure governance token to a deflationary asset, which could help support the token's value.

The recent price jump fits into a broader rebound around the protocol; the market also reacted earlier to growing interest in Uniswap and other onchain trading platforms.

Impact for European Crypto Investors

For European crypto investors, the developments around Uniswap and the FOMC decisions could matter. The Fed's rate decision under a new chair could affect global capital flows into risk assets, including crypto. At the same time, the growth of tokenized assets and the deflationary mechanics inside DeFi platforms like Uniswap point to a possible new market dynamic that also deserves attention in Europe.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.