Uniswap extends drop below $10 but could new proposal boost UNI price?

Uniswap’s native token UNI slipped below $10 this week, extending losses of more than 5% as bulls struggled to reclaim the key level.

The decline mirrors broader market weakness and subdued investor sentiment.

At the same time, activity on the Uniswap protocol has surged, with trading volumes climbing and a new governance proposal moving through the community for a dedicated entity to back the platform’s growth.

With UNI hovering near $9, traders are watching closely for a potential breakout from its current technical pattern.

Should momentum align with a broader recovery in altcoins, analysts see scope for the token to retest the $18–$20 range.

Uniswap vote on Wyoming entity passes initial stage

The Uniswap community is currently voting on a pivotal proposal to create a Wyoming-based Decentralised Unincorporated Nonprofit Association (DUNA) named “DUNI.” 

Per the proposal, this entity aims to support off-chain operations while preserving Uniswap’s decentralised governance structure.

DUNI will handle tasks such as entering contracts, hiring service providers, and meeting regulatory and tax obligations, without affecting the protocol’s on-chain governance or the UNI token. 

“Adopting DUNI does not, in any way, alter the Uniswap Protocol, the UNI token, or the core mechanics of onchain governance. Rather, it represents a significant step in equipping Uniswap Governance for the future,” the proposal reads.

The initiative is designed to shield governance participants from potential legal or tax liabilities arising from collective decisions. 

An initial temperature check vote garnered unanimous support, signalling strong community backing.

The final vote, underway on the Snapshot platform, is set to conclude on September 8, 2025.  

Wyoming’s crypto-friendly regulations make it an ideal location for this move, which could set a precedent for other decentralised autonomous organisations (DAOs).

Is UNI price poised for a 100% bounce?

UNI’s price has dipped to $9.44, down 1% in the past 24 hours and 5.8% over the past week.

This sees Uniswap underperforming the broader cryptocurrency market, even as Bitcoin and Ethereum battle bears at key levels.

For UNI, the downturn from highs of $12 in mid-August not only aligns with broader market pullback, but signals the robust resistance around $10.

UNI has traded lower along a falling trendline resistance and currently sits near the critical $9 area. 

While prices have fallen amid the temperature check vote, the DUNI proposal is among the catalysts that could bolster investor confidence.

If bulls capitalise on this and overall market conditions, a breakout above $12 could push Uniswap price to year-to-date highs of $15 and December 2024 peak above $18.60.

On the flipside, failure to reclaim $10 and $12 areas could allow bulls to aim for $8.10 and $4.80.

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