Uniswap Finally Flips the Switch

Welcome back to The Warmup.

Uniswap’s cooking again… but the neighbors just lit the grill.

Here’s what we’re watching:

• Market Snapshot

• Uniswap Finally Turns the Fee Switch On

• BTC Support Bounce Setup

• The Fed’s Balance Sheet Is About to Grow Again

Market: Bitcoin held above $105K and Ethereum outperformed, while Solana cooled off after recent gains. Stocks were mixed, with the Dow leading and Nasdaq lagging, showing a cautious but steady risk-on mood.

Uniswap Finally Turns the Fee Switch On

What’s going on:

Uniswap just dropped one of its biggest governance proposals ever. Founder Hayden Adams and the Uniswap Foundation proposed turning on the long-awaited fee switch, finally linking UNI’s value to the protocol’s success.

The proposal includes a retroactive burn of 100M UNI from the treasury and sends all Unichain sequencer fees into the burn mechanism after covering costs.

It also folds most foundation functions into Labs, gives them a 20M UNI yearly budget for growth, and cuts all takerates on the app, wallet, and API to zero.

After years of UNI holders watching revenue flow only to Labs, this proposal finally gives the token a real claim on the network’s success.

What it means:

This could be a major turning point for UNI. The token now has a direct value accrual mechanism, something it’s lacked since launch.

But Uniswap’s market dominance has slipped hard, from 60% in late 2023 to under 15% today, as new players like Aerodrome took the spotlight.

If the new burn system had been live, nearly $26M in UNI would’ve been burned in the past month and $150M year-to-date. That’s a strong narrative boost, even if UNI still looks expensive compared to peers.

Uniswap is finally unifying its ecosystem. Now the question is whether this move can help it reclaim its throne as DeFi’s king.

BTC Support Bounce Setup

What’s going on:

Bitcoin just closed the week back above its 50-week EMA (~$101K), a level that has historically marked the line between bull continuation and cycle breakdowns.

The brief dip below saw strong buying pressure, showing that dip buyers are still active.

With macro conditions easing, this could be the start of another leg higher

Key levels we’re watching:

• Support: $101K → 50-week EMA holding as key bull market floor

• Resistance: $115K → next major hurdle for bulls

• Breakout target: $126K → previous all-time high zone

• Breakdown risk: Weekly close below $101K invalidates setup

Directional Bias: Bullish

Momentum is recovering and liquidity is improving. As long as BTC holds above the EMA, bulls stay in control.

What we’re waiting for:

• Weekly close confirmation above $101K

• MACD crossover or volume expansion confirming trend reversal

• Continuation above $115K to unlock upside momentum

The Fed’s Balance Sheet Is About to Grow Again

What’s going on:

For the first time since 2022, the Fed is getting ready to expand its balance sheet again. After two years of draining liquidity through QT, they’re about to start adding cash back into the system.

Here’s what’s happening:

• QT officially stops on December 1

• The Fed will keep its balance sheet roughly flat for a while, which means neutral liquidity

• Then, likely by early 2026, they’ll start buying Treasury bills (short-term bonds)

But this isn’t the massive QE that fueled the 2020–2021 bull run. It’s a much smaller version.

The Fed will only buy around $20B per month, focused on short-term Treasuries rather than the long-term ones that really drive markets higher.

What it means:

This won’t send risk assets soaring right away. Buying bills adds some liquidity, but nowhere near the power of real QE. Still, markets might react positively just because “the Fed is back to buying.”

The bigger variable is the Treasury.

If Janet Yellen continues to issue mostly short-term debt, that effectively removes long-term risk from the market and keeps liquidity flowing.

But if she starts issuing more long-term bonds, that could drain liquidity again and undo the Fed’s impact.

In short:

• Liquidity is slowly coming back

• Sentiment will likely improve

• The real fireworks start only if the Treasury plays along

• Solana treasury Upexi posts record quarter powered by $78M in unrealized SOL gains

• Coinbase scuttles $2B deal to acquire stablecoin startup BVNK

• SoFi launches crypto trading for consumers

The crypto market’s weakness wasn’t a crash in fundamentals, it was a temporary liquidity squeeze.

With the government reopening, QT ending, and liquidity set to flow again, the setup for 2026 looks strong.

Short-term volatility might still happen, but the bigger trend now favors recovery and growth.

For new investors, this is the time to learn, plan, and slowly build positions in assets you truly believe in.

Not to panic sell.

— The Warmup Team

Always do your own research. This newsletter is supplemental material to help educate readers as they make their own decisions. Projects mentioned here are provided to give a potential early-mover advantage.