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Universal Market Access, or UMA for short, is a decentralized governance token that may be used to vote on project decisions. It uses the DeFi protocol to work on the Ethereum blockchain. UMA brings buyers and sellers together from all over the world.
Since the beginning of February, the price of UMA has risen to $45 from $10.8 and then reached around $25 in March 2021.
Despite a recent dip, UMA has been one of the strongest performers on the cryptocurrency market this year, and there is no sign of the trend reversing.
DeFi developers can construct synthetic assets on the UMA platform. It brings sellers and buyers from worldwide together, and all positions are pre-funded because of smart contracts ensuring that neither party can back out.
This article will discuss what Universal Market Access is, examine its past performance, and understand Universal Market Access (UMA) price prediction for 2021 and beyond.
What Is Universal Market Access (UMA)?
On the Ethereum blockchain, UMA is an open-source architecture that facilitates the production of efficient, rapid, and secure synthetic assets. For the UMA system, the UMA token serves as a governance token and can also be used to fulfill price requests.
Allison Lu and Hart Lambur founded the platform in December 2018. Any real-world financial derivatives can be digitized and automated on the UMA platform. Furthermore, the users of UMA are eligible to construct and design self-executing and enforcing financial contracts.
According to some observers, UMA is a unique DeFi project with limitless potential because it allows DeFi developers to create synthetic assets.
In the event of a dispute, synthetic assets on UMA can be generated using priceless contract templates that require an on-chain price feed.
UMA’s purpose is to make trading accessible to everyone without charging a significant cost. All positions are collateralized in advance due to UMA’s trust-less character, and any two people or organizations can trade with each other from anywhere in the world.
Various products that can be traded on UMA include:
- Equities
- Futures
- Cryptocurrencies
- Perpetual swaps
- Insurance products
Another intriguing characteristic of UMA is that the price of anything treasury bond prices, S&P index, or even currencies can be tracked by the synthetic tokens created on this protocol.
What Are Synthetic Tokens?
Synthetic tokens are a little more challenging to comprehend. Right? Please keep reading to understand what they are!
Synthetic tokens are backed by collateral and are ERC-20 tokens. Based on the tokens’ reference index, the price of UMA fluctuates. Such tokens are essentially Ethereum-based derivative contracts that have an expiration date and a price identifier.
The collateralization requirement of the token varies but needs to be at least 120 percent of the value of the issued tokens. For example, to issue $200 of synthetic gold tokens, you’d need $220 in Cryptocurrencies locked as collateral.
How UMA works?
While UMA is conceptually tricky, its operation is surprisingly simple. UMA consists of three main components: –
- Token Facility: The Token Facility is a UMA smart contract that permits the production of synthetic tokens that represent an asset. A Token Facility Owner is an entity that creates the smart contract for synthetic tokens.
- Data Verification Mechanism (DVM): UMA does not require a consistent price feed like Aave, Avalanche in order to function. Instead, UMA incentivizes token holders to continually check that the issuer is adequately collateralized rather than constantly reviewing the price of assets locked as collateral.
- A governance system: UMA token holders have two obligations in terms of governance: voting on upgrades to the UMA protocol, and voting on the price of an asset when a request is made to the DVM.
Price Analysis of the UMA
Flashback: Historical price analysis of UMA
UMA entered the cryptocurrency market on May 25, 2020, with a price of $1.3. Almost immediately after the debut, the token began to fluctuate.
By the end of June 2020, UMA had risen to $2.3 due to the fluctuations. By mid-July 2020, the price had plummeted to $1.7, and by the end of July 2020, it had risen to $4.1.
By mid-August 2020, UMA’s price had skyrocketed to $7.6 as the market began to acknowledge it. On the positive side, the price significantly increased to $18.3 at the end of August 2020.
The price steadily increased to $23.4 by early September, smashing prior highs amidst a bullish run. Within a few days, the price had dropped to $14.4, and UMA had continued to fall.
By early October 2020, the token had plummeted to $5.9 and could only recover to $10.
Later, UMA began to decrease rapidly, plummeting to as low as $6.3 in early November 2020 before progressively recovering. The widening of Bitcoin’s price rally allowed UMA to capture its resistance level at $8.11.
Despite this, and with some fluctuations, the token kept fluctuating between the $9 and $10 levels throughout December 2020. UMA reached $7.7 by the end of December 2020.
Let’s see how UMA will perform in the future.
Universal Market Access (UMA) Price Prediction 2021
Since the beginning of the year 2021, UMA has been on an upward trajectory, with the price of this cryptocurrency exploded in February 2021.
The price of UMA has prolonged its drop from recent highs around $45, although there is no risk of a bear market as long as the price remains above $20.
UMA continues to remain bullish, and there are no signs of a trend reversal at this time. It would be a hint to trade UMA if the price rose above $30 resistance again, and the subsequent price objective might be around $35.
However, if the price falls below $20, it is a firm ‘sell’ signal and possibly a sign that UMA will show bearish price behavior.
During October 2021, the price of UMA is expected to reach $60.02 and then rise to $75.74 by the end of December 2021.
Universal Market Access (UMA) Price Prediction 2022
UMA may begin in the year 2022 at $62, representing a $13 decline in the price of UMA. If the market remains positive, the price of UMA may increase to new heights as a result of the changes.
For several months, the token might trade between $78 and $85 and then rise to $110 by the end of December 2022.
Universal Market Access (UMA) Price Prediction 2023
At the beginning of January 2023, the price of UMA is expected to be $22.22 and then decline to $20.05 within one month, representing a 6% decline by February 2022.
However, by June 2023, the average of UMA will reach $23.24 and then hike to $37.02 by December 2023, representing 13% since the start of 2023.
Universal Market Access (UMA) Price Prediction 2024
The minimum price of UMA during January 2024 will be $35.10 and then rise to $53.27 by August 2024. By December 2024, the average price of UMA will reach $76.89, representing 11% since the start of 2024.
Universal Market Access (UMA) Price Prediction 2025
UMA may be considered one of the world’s emerging cryptocurrencies in five years, with greater prices and a larger market capitalization.
If the token concentrates on certain inbound advances, the number of users and investors may rise and UMA may hit $300 by the end of 2025.
Universal Market Access (UMA) Price Prediction: Market Sentiment
The UMA token has been given a propitious long-term outlook by several media sites. Let’s have a look at what the other experts have to say:-
Wallet Investor
According to Wallet Investor, UMA will rise to $52.960 from $25.769 by the end of 2021. Moreover, it is expected to reach $160.72 by 2025.
Digital Coin Price
UMA’s price could reach $38.6 by the end of 2021, according to digital coin price. By the end of 2025, it might hit an all-time high of $80.44. However, UMA’s lowest price could be $11.
Tokeneo
There can be a 429.06% price rise in UMA’s value by the end of 2021, according to Tokeneo. The project will expand its pool and, more crucially, cover all of the markets where cryptocurrencies are most needed and involved.
Reddit Community
Reddit is quite optimistic about UMA’s price movement and expects the price to reach $40 by 2021.
Gov Capital
UMA might reach $48 by the end of 2021, according to Gov Capital. Furthermore, the price of UMA is expected to reach $87.00785 by the middle of 2025, and lie between $155 and $180 throughout 2025.
Coins Kid
The average price of UMA by the end of 2025 is expected to reach $143.56, whereas its minimum price can be $118.66.
Our Universal Market Access (UMA) Price Prediction
The UMA project uses two main components: the financial contact templates (priceless) and the oracle service.
UMA has enabled the creation of reliable, quick, and secure synthetic torches in the Ethereum blockchain by combining these two components.
Most wallets accept Ethereum token-based UMA cryptocurrency except Ledger and Trezor. Unfortunately, these two wallets do not allow UMA to be stored on their devices. However, maintaining tokens in the UMA ecosystem is a viable option.
UMA has also offered early investors 100 times return on investment, yet bearish indicators suggest that UMA is still relatively unknown despite these gains.
Having something put into a smart contract would be preferable, while a pledge is terrific. Moreover, it would even seem reasonable considering the team’s constant references to the importance of smart contracts in the crypto field.
The price of UMA is predicted to increase high based on previous price movements and the recent price rally of UMA.
To grow its user base and attract investors, UMA may focus on certain collaborations and partnerships. The token might be worth $65 by the end of 2021 and could rise to $350 by the end of 2025.
As traditional values can be transferred to Blockchain technology, and transactions can be concluded using smart contracts (which is crucial in a secure process), we expect UMA’s value to rise in the near future.
Conclusion
UMA is a decentralized financial product and Defi monetary-based system that does not require a single corporation or financial institution to process transactions.
Users who want to invest easily and quickly require a low-cost broker with a proven track record, prefer to invest in UMA.
Accessibility is one of the major issues with the derivatives market and to trade a derivative on UMA, all you need is someone to take the opposing side of the deal.
All positions are collateralized in advance, according to UMA’s trust-less character, thus neither side can default without paying significant fees.
However, if both parties are in separate countries, legal means to file a lawsuit can be problematic for either party.
By the end of the year 2020, the price of UMA traded at $7.71 and then rise to $75 by the end of 2021. Moreover, the price of UMA is expected to exceed $200 based on Universal Market Access (UMA) price prediction by media outlets and other experts.
Hence, if you’re looking for a long-term investment, UMA could be a smart choice for your portfolio of assets.
Cryptocurrency trading is not appropriate for all investors because of high volatility. This article focuses on UMA’s fundamental and technical analysis, which can be used to create future forecasts based purely on historical performance.
However, historical data does not provide accurate direction for the future; therefore, we suggest you perform your own analysis before investing in Crypto assets.