UMA has been naming rounds in the crypto market as the token has been giving a phenomenal performance for the past few days. The token was largely bearish towards the end of February but the beginning of the new month brought good news for the token as it surged upwards. The bullish momentum has sustained so far for the token as the daily price records an increase of 25%. At the time of publishing, the token was trading hands at a price level of $10.28. the daily trading volume has also surged by nearly 400%. UMA currently stands at a market rank of #97.
What is UMA?
UMA stands for Universal Market Access. The underlying goal of the project is to make decentralized finance accessible to the masses. Since the blockchain technology is novel, a major chunk of its capabilities remains unexplored because of the high barriers to entry. Any develop, contributor or user of the decentralized finance sphere needs to have a high level of knowledge of the intricacies of the realm. This is the problem that UMA is trying to solve.
Essentially, the network enables anyone to create synthetic assets on the second-largest blockchain, Ethereum. These assets are, in a way, price trackers of real-world assets which can be then used in the digital and crypto worlds. The proposition of UMA is valuable because it is creating a convergence between the real world and the world of cryptocurrencies. By utilizing its technology, users can digitize any real-world derivative.
Future outlook
UMA currently has $51 million in total value locked in contracts on its platform and there are currently 72 projects live on the platform. Some of the renowned projects on the platform are Jarvis, Domination Finance, etc. The platform is designed to enable the production of novel financial products, customized to specific needs. DeFi products are also launched with high security, minimum oracle usage and in no time.
Because of the value, it is bringing into the market, UMA’s future outlook is bullish. The team has also been active on the development front and the platform recently partnered with a rising web 3.0 contributor, DappBack, which along with its growing ecosystem further cements its bullish outlook. According to the estimates of Digital Coin Price, the cryptocurrency is expected to end the year with a price level of $13 while the five-year projection places it at $24.
