The Overview of UMA Project
UMA is the short form of ‘Universal Market Access,’ primarily used to create, maintain, and settle financial transactions on Ethereum. UMA uses DeFi protocol on the Ethereum Blockchain. UMA enable their user to make custom made financial services for their financial needs. In simple words, UMA is a decentralized governance token used for priceless financial contracts.
|Price Change 24H||+3.05%|
|Price Change 7D||+1.39%|
|Circulating Supply||68,947,415 UMA|
UMA’s innovative approach provides an opportunity for anyone to design and create trustless contracts with the help of an open-source protocol, a relief from the hurdles of traditional real-world financial derivatives. In 2018, two famous Goldman Sachs traders named Hart Lumber, and Allison Lu created UMA projects.
How Does UMA Work?
UMA platform consists of two major subdivisions; The first part is an oracle data verification mechanism called DVM, which works when price requests are made to the DVM. Other is used to create a synthetic token. UMA token is a governance token created to fulfill the price requests. UMA governance system provides two obligations to its token holders. The first one is voting right in the time of degradation of UMA protocol, and the other is voting on the asset’s price when a DVM request has been made. Priceless financial contract template used to mint synthetic tokens.
The specialty of UMA’s smart contracts is that they can work without an on-chain price feed. The design of the contract has a mechanism for liquidation and dispute resolution. Hence, both of the contract parties can properly collateralize their positions. Termination terms, mutual agreement, margin requirements, and other needful are included in the framework. Logics to calculate the net present value of the agreement functions to maintain margin balance or settle contracts, choice of oracle for data verification purpose, addresses, and other details of both the parties, margin accounts will also be included in the UMA contract.
By maintaining a minimum balance in the account, the maker or taker can add or withdraw funds as per requirement. Underlying assets prices recalculated based on NPV of that time. Templates are user-friendly, and anybody (maker and taker) can create UMA smart contract. One has written for creating synthetic tokens. The user can create synthetic tokens representing a synthetic asset in the contract. Hence, UMA enables the creation of ERC-20 tokens which work on the Ethereum blockchain technology, such as ETH/BTC, which can track the ETH/BTC ratio. This is called trustless tokenization.
What is Unique About Universal Market Access?
UMA ecosystem is unique, which helps DeFi developers for creating customized synthetic assets. Synthetic assets are a group of assets that represent underlying assets that have the same value. Synthetics assets do the objective of real-world assets like financial derivatives. Parties entering or deploying into UMA’s enforcing financial contracts has to collateralize their positions properly. UMA aims to ensure trading is accessible to every trader without the significant cost of transactions.
UMA smart contract applications include financial exposure to the US and global equities, tokenized yield curves, treasury bond price. S&P index can be tracked using UMA. Cryptocurrencies, futures, perpetual swaps, insurance products can be purchased using UMA. Hence, UMA provides new technological solutions for fintech. ALL these things and key mechanics employed in execution make UMA unique in the financial world.
UMA: New Invention to Cryptocurrency Market
UMA cryptocurrency is the native coin of the UMA platform. 2% of tokens are allocated into the Uniswap pool, which enables the users to purchase the token. Initially, it has created 100000000 tokens, among which 2% is initially listed for an amount of $0.26.
UMA pays inflation rewards to token holders who have active participation in governance and on time responds to the price request. UMA tokens were issued publically on MAY 2020, and after the public issue, UMA price stood at a minimum price level of $1.36.
UMA Fundamental Analysis
Universal Market Access was founded in 2018, and UMA token trading started in 2020. In 2019, the Risk labs announced the launch of ERC-20 tokens, which represent the major 500 equities of the US. The main investors of the company include:
- BAIN CAPITAL – US
- Blockchain Capital ( San Francisco, California)
- Box group ( US)
- Coinbase Ventures -US
- Place holder VC- New York
- Dragonfly capital – CA, USA
- Two sigmas – NY USA
UMA’s fundamentals are good and quite strong. Excluding volatilities due to the Global Crisis, crypto market crash, and other occasional arbitrary movements, UMA tried to give good returns to investors. UMA fundamental analysis points to profitable long-term investment advice to its traders and investors.
UMA Technical Analysis
It is the complete monthly chart of the UMA token after its public issue. Let’s have a price analysis based on advanced technical analysis tool and historical data.
UMA was listed in May 2020, and by the end of June, the price of UMA had risen to a level of $2.3. However, due to high volatility, the actual price has plunged to $1.7. And later, the price of UMA has rocketed to $7.6. By the end of August, the UMA price had reached $18.3. The hefty profits for investors in August are continued till the initial weeks of September. Later, it broke the short-term UMA price prediction, and the coin price tumbled to $14.4.
Downfall continued, bears are taking over the price of UMA by breaking the most reliable price projections. During early October, the coin witnessed a deep fall and took support at $5.9. The reversal rally from the support level continued only till the resistance level of $10.
After that, UMA witnessed a trend reversal to $6.3 in November, which was tested as the second support level of UMA. In April 2020, the UMA fell to the lowest price of $1.3, then UMA waited till the crypto community understood the benefits of UMA, and the price rose to the resistance level of $8.11. UMA’s price hanging around $7.7 to $10 and closed the year at $7.7.
The price channel oscillator on the weekly chart shows the details of price volatility. But the year was mostly on an uptrend for UMA. Later, the bullish run continued, and the price exploded to $44.99 in February 2021 with huge volume, which is the ATH of UMA. From the chart reading, UMA was trading sideways till May. Later, the UMA coin price plunged from $16 to $9 and took support around $7.6. After that, the coin continued within the Bollinger, squeezing without a break out from the range.
Today’s price of UMA fall below all its short time support level and trading range-bound. Twenty-four-hour trading volume as of 06-October-2021 is low compared to the previous trading session. As of IST 20:52, UMA is trading on $10.016 with a loss of 0.08% for the trading session. On September 29, the ‘morning star pattern’ has formed on the daily chart, which makes UMA profitable with a return of 9.93%. But the momentum cannot be sustained. It tested the resistance level of $10, UMA continuing on a range-bound for the next trading session, including 6 October 2021. Traders lost 32.27% on the UMA price for the month.
The next immediate resistance is placed at a dollar $11.056, UMA has to cross that to reach $13 to break the last swing high. Major resistance is placed on $18 and $20. Only after that UMA can expect momentum towards its all-time high. A round bottom pattern has been observed in the long-term chart, but UMA cannot rise after that.
UMA Price Predictions: 2022-2026
The huge suffering of the global crypto market on September 07 has affected UMA’s price to a sudden fall of $6 in a single trading session, which results in a downtrend amid global economic disruptions and questions on the legitimacy of cryptocurrency.
Most popular technical indicators on charts RSI indicator is placed at around 54, MACD has just crossed the signal but not indicating strength, RSI above 40 also indicates a buy, but candles are not strong enough for a confirmatory buy. Volume is low, and no candlestick buy indication has been initiated.
Technical analysis setup on the daily chart, the current price of UMA is trading far below its 200 EMA, below its 20 EMA, and 50 EMA. The fear and greed index is placed at 7, which indicates traders are confused to make a trading decision. In the short term, the perspective coin needs to form any pattern or break its near short term resistance to move further.
If no positive news is backed up for the upcoming trading session, the predicted price trend of UMA will continue sideways. Aggressive buyers can look for a buying opportunity, and investors or short-term traders can wait for a break out from the sideways trading range to enter. Major resistance of $20 is a good indication for future possible growth.
If the current trading session ended up as Doji, indecisiveness in the market has been confirmed. If it’s forming an evening star on the daily chart, then a fall to the level of $8.06 formation of the ‘W’ pattern is expected before the breakout. If it is breaking the resistance level, traders can expect a return to the level of $11.56.
The price prediction for 2022 is bullish for the crypto market; apart from some major global concerns, October is flat for some cryptocurrencies. If global cues are positive, crypto coins will continue their bullish trend for the last months of 2022. The UMA price is expected back to $9.89 by the end of the year as per our cryptocurrency future price predictions.
UMA Price Prediction 2022
In 2022, the UMA price is expected to cross the $10.63 range, and the middle of 2022 will be breaking all-time high. By the end of 2022, UMA could trade in the range of $9 to $11.
UMA Price Prediction 2023
The fresh high of the long-term forecast of 2022 cannot be maintained in 2023. The initial half is expecting dark days in crypto, especially in the UMA price forecast, which can make a plunge into the range of $11.90 in the first half. UMA could take the support at $20 and not fall beyond. By 2023, it can revert into a bullish run to recover the losses and test $13.57 levels.
UMA Price Prediction 2024
Five years over the line, the crypto market is expected to be demandable and generally accepted among the public. Cryptocurrencies are expecting improvement in their performance. UMA will be moving in a sidewise trend at the starting of 2024 in the range of $10 to $14 levels. On the long-wave side, it has risen from $14.70, which can continue till $14.73, which is a fresh high value for UMA.
UMA Price Prediction 2025
UMA is unique in its performance, 2025-2026 expecting a complete acceptance and rise in the token’s value. By that time, smart contracts can be very common, and UMA might be trading in all the major crypto exchanges. It can rise into one of the best performing cryptocurrencies. So UMA is expecting a boom at a price by 2025. The break out is expected to cross the level of $16.15 can cross all time has and expected a move in the range of $18.60, and one among the best-valued cryptocurrency for crypto market enthusiasts.
UMA Price Prediction 2026
Cryptocurrencies are extremely volatile in nature, and their price may trade at the level that no one has predicted. Similarly, UMA has the potential to touch the $15.65 mark by the end of 2026. If the ecosystem focuses on its core advancements, it will positively affect the UMA price and record significant growth.
Frequently Asked Questions
Is UMA is a good investment?
As per the future forecast, UMA could be a good investment. It is comparatively cheap now but has a good long-term prediction. All the information provided above is for educational purposes. One has to do own research and analysis with the help of a cryptocurrency exchange aggregator to know about the performance before buy or investment decision.
What is the future of UMA?
The technique of integrated services starting smart contracts, in future, UMA Token is expecting a wide acceptance globally. Since it has given a return of 50% for investors last year, for the upcoming years also UMA is looking for better returns. As per analysis, the future price directions of UMA are favorable for the coin.
Does UMA Cross All-time High in the Short-term?
Research multiple viewpoints show that UMA/USD performs well in the near term. By the next year, it will be registered in more exchanges. For upcoming years, UMA is expecting a reduction in volatility, improved global acceptance, increased circulation. However, there is no universal consensus that points out it will obviously rise high or fall. As per chart analysis and fundamentals, UMA is strong and meet the expectation of its investors. Fluctuations are part of the crypto market, so it is expected in all cryptocurrencies traded.
Where can I buy UMA?
Users can buy UMA on the following major cryptocurrency exchanges:
- Coinbase Pro
Does the UMA network have safe transactions?
Yes, UMA runs on the Ethereum blockchain and is protected by proof of work and Ethash; it offers a secure platform for transactions.