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UNI, the native token of the Uniswap protocol, has emerged as a top-tier holding for LD Capital, ranking just behind Bitcoin (BTC) and Ethereum (ETH) in the investment firm’s crypto portfolio. The revelation came from Jack Yi, founder of LD Capital, who expressed strong confidence in the altcoin’s future growth, citing its historical performance, DeFi dominance, and evolving tokenomics.
In a recent post on social media platform X, Yi stated, “BTC keeps hitting new highs, ETH is surging toward a new high, UNI is three times away from a new high. After ETH’s trend is confirmed, it [UNI] is hailed as 3x Ethereum leverage. The token has significant certainty and potential.”
Yi’s comments highlight the growing narrative around UNI as a high-beta DeFi asset that could outperform Ethereum during bullish cycles. His remarks come at a time when Uniswap’s token is showing notable momentum, gaining over 19% in the past 24 hours and reaching a local peak of $10.77, according to data from crypto.news.
At press time, UNI is trading at $10.70, which remains nearly 76% below its all-time high of $44.92 recorded during the 2021 bull market. Despite that gap, investors like Yi believe the altcoin still has substantial upside potential.
A DeFi Powerhouse Riding Ethereum’s Wave
One of the key reasons behind Yi’s conviction in UNI is Uniswap’s dominant role in the decentralized finance (DeFi) ecosystem. As the largest decentralized exchange (DEX) built on Ethereum, Uniswap serves as a crucial liquidity provider for a vast number of on-chain token swaps. The platform consistently records the highest trading volumes among DEXs and maintains deep liquidity across key trading pairs.
This tight connection with Ethereum also means that UNI tends to outperform when ETH performs well. The recent market activity serves as a case in point. While Ethereum saw a 5.19% gain, UNI outpaced it significantly with a 19.05% surge, nearly four times the rate of ETH’s growth.
This correlation supports the narrative that UNI functions as a kind of “3x Ethereum leverage” — a phrase Yi used to describe the token’s ability to amplify Ethereum’s price movements due to its direct integration with Ethereum-based DeFi.
“UNI benefits from Ethereum’s growth directly,” Yi explained. “As Ethereum attracts more trading activity, gas usage increases, and more liquidity flows into Uniswap. This creates stronger demand and higher volumes for UNI.”
Upcoming Fee Switch Proposal Could Add Real Yield
In addition to technical momentum and Ethereum’s strength, Yi pointed to an upcoming governance proposal that could fundamentally alter UNI’s value proposition.
Uniswap is considering activating a long-debated feature known as the “fee switch.” If approved by the community, this mechanism would allow a portion of protocol fees to be distributed to UNI holders or stakers — effectively introducing real yield into the token’s ecosystem.
Currently, Uniswap generates substantial revenue from transaction fees, but these are not shared with token holders. Activating the fee switch would change that, aligning the protocol more closely with revenue-sharing models seen in traditional finance or other DeFi projects like GMX or Lido.
This potential shift in tokenomics could significantly boost UNI’s appeal to both retail and institutional investors looking for yield-generating digital assets.
“The fee switch would introduce a new layer of value to UNI,” said Yi. “This could drive further demand and reduce circulating supply as more holders stake their tokens.”
Market Sentiment and Volume Confirm Growing Interest
The strong price movement in UNI has also been accompanied by a sharp increase in trading volume. According to crypto.news, UNI’s 24-hour trading volume surged over 60% compared to the previous day, suggesting growing investor interest and broader market participation.
Volume spikes often precede sustained rallies, particularly when they coincide with bullish sentiment across the broader crypto market. With Bitcoin recently reclaiming the $71,000 level and Ethereum moving toward $4,000, altcoins like UNI are starting to benefit from renewed market confidence.
UNI: Still a Long Way From Its Peak
Despite the recent rally, UNI still has a steep climb ahead if it’s to revisit its all-time high. At $10.70, it remains roughly 76% below its peak of $44.92. However, for long-term investors like LD Capital, this gap represents opportunity rather than weakness.
Yi concluded his remarks with optimism, noting that UNI’s fundamentals are now stronger than they were during its last peak — thanks to continued protocol upgrades, user growth, and upcoming governance enhancements.
“We’re only one-third of the way to the top,” he wrote. “With stronger fundamentals and new catalysts on the horizon, UNI has a strong chance to outperform again.”
Final Thoughts
UNI’s recent surge and LD Capital’s strategic positioning reflect broader investor interest in quality DeFi tokens that benefit from Ethereum’s growth while offering asymmetric upside potential. With a strong foundation in Uniswap’s dominance, potential for fee-sharing, and support from influential backers, UNI could be one of the key altcoins to watch during the next phase of the bull market.
As always, investors should stay informed and consider both technical and fundamental trends before making any decisions — but with sentiment building and volume rising, UNI may be getting ready for a larger breakout.
