British banking giant Standard Chartered has given important assessments regarding the long-term prospects of Uniswap's native token, $UNI. Geoffrey Kendrick, head of the bank's digital assets research unit, stated that the collaboration between Uniswap and Robinhood has yielded stronger results than expected, and that the previously forecasted target price for $UNI by 2030 may prove to be conservative.
According to information published by The Block, Kendrick spoke of a significant increase in the rate of $UNI token burning following the activation of the fee-sharing mechanism linked to Robinhood on July 27. According to the analyst, the volume of burned $UNI tokens after that date nearly doubled, reaching $90 million on an annualized basis.
Kendrick stated that, based on current prices, this corresponds to approximately 25 million $UNI tokens, meaning that over 4% of the total token supply is being removed from the system annually. It is estimated that this supply reduction could exert upward pressure on the price of $UNI if demand persists or increases.
However, Standard Chartered also emphasized that maintaining the current level of resource expenditure over a long period might be challenging. Kendrick stated that even if the price of $UNI rises to his projected level of $6.50 by the end of 2026, the annual rate of resource expenditure would remain around 2.2 percent. In the analyst's view, this rate still indicates a sufficiently strong supply reduction mechanism for the long term.
Kendrick also stated that the implementation of new partnership programs similar to Robinhood in the future could have an even greater impact on the $UNI token economics. It is suggested that if token usage and burning continue, even Standard Chartered's previously announced target of $100 $UNI by 2030 might prove insufficient.
Experts assert that if growth in the decentralized finance (DeFi) sector continues, $UNI could remain one of the most closely watched crypto assets in the coming years.
*This is not investment advice.
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