UMA crypto: Why should investors watch it closely

Highlights 

• Launched in 2018, the Universal Market Access (UMA) is a protocol powered by the Ethereum blockchain to create synthetic assets.
• UMA allows the users to design and create decentralised financial contracts.
• At the time of writing (BST 8:00 am), UMA was trading at US $22.35 with a 24-hour trading volume of US $725,383,640.

Launched in 2018, the Universal Market Access (UMA) is a protocol that is powered by the Ethereum blockchain to create synthetic assets. UMA allows the users to design and create decentralised financial contracts. UMA has been on a bullish run of late and has registered significant gains in the market. 

UMA's rally began last week following the launch of its 'Across Platform'. The Across Platform is dubbed as the fastest and the most secure bridge between Layer 1 and Layer 2. The launch saw UMA register huge gains with its price rallying by 35% and volume by 63.56%. 

The rally further continued on Tuesday, as it was registering significant gains by 30.34% on the back of the Sherlock protocol integration. The Sherlock protocol, which happens to be an insurance protocol, utilises UMA's Optimistic Oracle solution to adjudicate claims and provide exploit protection to other protocols.

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Why is UMA popular?

UMA comes with a significant reputation, with Goldman Sachs Group being once dubbed as the co-founders of this protocol. The UMA crypto being permissionless allows users to create, run and trade digitised derivatives. It also makes sure that the contracts are not manipulated and reduces transactions costs with minimal on-chain transactions.

With UMA, a token sponsor can lock his collateral in a smart contract to mint synthetic tokens. This ensures that the positions are always over-collateralised through an off chain of a robust network of liquidators. The liquidators and the token sponsor ensure continuous monitoring of a position and ensure that it's properly collateralised. 

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Is it worth investing in UMA? 

UMA has showcased a bullish trend, and, in all likelihood, the impact of two major developments of the Sherlock Protocol and the launch of Across Platform will rub off with the investors as well.

UMA is currently placed at 88 as per the market as per CoinMarketCap. At the time of writing (BST 8:00 am), UMA was trading at US $22.35 with a 24-hour trading volume of US $ $725,383,640. UMA was up by 30.34% in the last 24 hours. UMA is enjoying a live market cap of US $1,424,164,292 with a circulating supply of 63,724,410 UMA coins.

Its market trajectory seems to be going up, and it would be wise for any investor to consider it as a viable option. Market experts are pretty bullish on the token, with it expected to gain growth by the price expected to grow over +50% in the next five years. The rally, if it continues, could see UMA climb to the Top 60 or even Top 50, with its price soaring to US$150 or more by 2026.