UMA is a governance token of the UMA project – a protocol that allows anyone to create synthetic tokens that represent all real assets. UMA, which stands for Universal Market Access, was founded in 2018 by Goldman Sachs alumni and has an impressive list of supporters including Bain Capital Ventures, Coinbase Ventures, and others.
There are two key mechanisms of the project – priceless financial contracts and the Oracle system. Priceless contracts are used to mint synthetic tokens by locking collateral into a smart contract. UMA’s innovative approach is that these contracts do not require constant monitoring of the prices of the underlying assets; Instead, it is the responsibility of the token holders to ensure that their synthetic assets are not undercollateralised. If this is the case, another actor in the network – a liquidator – comes into play and liquidates the position. Liquidators are kept in check by parties to the dispute: if the liquidation is done in bad faith, they open a dispute. The Oracle system is designed precisely for these cases: it reports the actual price of the asset in question, which determines the outcome of the dispute. Throughout this whole process, the honest parties are rewarded and the dishonest parties are punished. UMA tokens are used in the dispute settlement system to vote on price requests. The second role of the token is to vote on general improvements to the protocol.
Trading in UMA tokens began in the late spring of 2020 and initially did not cause a stir, as the price was around 1.3 to 1.5 US dollars for a few months. However, with the DeFi boom in the fall of that year, UMA’s price skyrocketed, reaching $ 24.99 in early September. However, as the frenzy subsided and DeFi investors made big profits on the sale of their tokens, UMA’s price became more moderate, trading sideways between $ 7 and $ 11 through January 2021. to offer a synthetic index of meme stocks called uSTONKS during the battle between the Wallstreetbets subreddit and actual Wall Street that drove the price of UMA to $ 43.37. UMA enjoyed that success until the crypto market collapsed in May when the price fell to the $ 13-15 range. It hit ~ $ 8.5 by July, where it is showing signs of consolidation.
Despite the fact that 100% accurate technical analysis is hardly possible for the UMA cryptocurrency, this advanced technical analysis tool from TradingView allows you to view the aggregated UMA buy and sell rating in real time for a selected period of time. The UMA / USD summary is based on the most popular technical indicators – moving averages, oscillators and pivots.
Below we have compiled the most reliable UMA (UMA) price predictions from popular forecasting platforms.
According to WalletInvestor, the UMA price will increase from $ 8.38 to $ 22.774 in one year. That makes UMA a great investment. The long term earning potential is 171.77%. The forecast price for the end of 2026 is $ 77.764.
When asked if UMA is a good investment, TradingBeasts answered a resounding yes. Looking ahead to 2021, this coin price is projected to reach $ 8.75445, with a decline to $ 11.00737 by the end of 2022.
In the DigitalCoin analysis, the price of the UMA cryptocurrency will increase from USD 8,54435 at today’s price to USD 34,0061553 over the next 5 years. It will increase to $ 14.1109432 by 2022 and begin reducing between 2023 and 2024. Based on this forecast, UMA is a profitable long-term investment.
As can be seen from the analysis cited above, the UMA (UMA) projections are rather contradictory. There is no universal consensus on positive or negative future UMA price movements. In fact, the future possible growth depends on various factors: announcements, new technological solutions of the UMA projects, the crypto environment in general, legal situation and so on. We kindly remind you that it is essential to do your own research (DYOR) before investing in a cryptocurrency.
Disclaimer: This article should not be viewed as a trading recommendation. The cryptocurrency market suffers from high volatility and the occasional random movement. Every investor should research multiple viewpoints and familiarize themselves with all local regulations before committing to an investment.
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