UNI, Uniswap's governance token, has surged by 46% to trade above $17, reaching a price not seen since January 2022, driven by enthusiasm towards a fee share proposal.

This rally is accompanied by a 120% increase in trading volume, soaring to $1.18 billion in the last 24 hours.

As a result, UNI's market capitalisation has grown by 44% in a week, making it the 16th largest cryptocurrency with a market cap of $9.4 billion.

The price surge follows a strategic initiative by the Uniswap Foundation to enhance the protocol's governance structure, redistributing protocol fees to UNI token holders.

This move aims to strengthen Uniswap's position in the DeFi ecosystem by improving governance and incentivising token holder participation.