UMA Price

Universal Market Access, or UMA, is an open-source infrastructure built on the Ethereum blockchain which enables decentralized finance developers to build synthetic assets. These are secure and flexible tokens that track the price of an underlying asset. Developers can make use of priceless DeFi contract templates to create their synthetic assets and UMA’s optimistic oracle service means fewer on-chain transactions and therefore reduced costs.

The UMA token is used to take part in the dispute resolution system and to govern the UMA protocol. Since UMA joined the market, its price has seen dramatic change and if you want to know why then you’re in the right place. We’ve compiled everything you need to get a better understanding of UMA price – as well as the factors which influence it.

Uma Price History

Following the conclusion of its initial coin offering at the end of April 2020, UMA hit the market in May trading at about $1.40. There were no major price changes for most of the first month but UMA surged to over $2.50 in June. Although prices had fallen back to about $1.60 by mid-July, the rally really got going after that, with UMA almost reaching $5 later that month and heading towards $8 in August. At the end of August, the growth became almost vertical as the UMA market cap surpassed $1 billion for the first time. This culminated in a peak of $27.48 on Sep. 1.

Prices quickly crashed after the high and UMA plummeted to $10.45 just a few days later. Despite a resurgence to nearly $20 the following week, prices continued to fall for the next month, hitting a low of $5.83 in October. Despite a brief spike to more than $12 the next day and two more in December, UMA mostly traded within the $6.30 to $9.60 range for the rest of the year.

UMA began 2021 with a price of $7.59 but immediately started to climb, finishing January trading above $11. The following month brought a much steeper price increase as UMA soared to its all-time high of $44.99 on Feb. 4, representing year-to-date gains of nearly 500%. By this point, UMA had a market cap of almost $2 billion.

Prices declined for the rest of February, ending the month below $20. A volatile March then saw UMA head towards $29 before retracing to $20. The first half of April looked promising, as UMA rallied to $33, but it pulled back to about $20 a few days later. The highest price recorded in May was $32.25 but the month then took a more bearish trajectory and UMA price touched lows below $10 after a single-day crash of 35%.

Analyzing Uma Price History

UMA price history can be analyzed with many of the same techniques as stock market analysis. Technical analysis involves using various indicators while studying price charts in order to make sense of previous price movements. With UMA, as with many other tradable assets, large price swings are often accompanied by spikes in trading volume, as a large number of users buy or sell their coins on exchanges.

Fundamental analysis, on the other hand, looks at the finances and activities of a company, as well as the state of the wider market and economy. The founders of UMA met while working at Goldman Sachs and have previous blockchain experience such as founding Risk Labs and Openfolio. As of June 2021, there are 11 projects building synthetic assets on UMA and $127 million of value locked in contracts on the protocol. These could be good signs for the project’s fundamentals.

Broader market trends have also played a role in the price history of UMA. Its surge early in 2021 wasn’t unique – the entire crypto market pumped around this time. Bitcoin was in the midst of a major bull run then, and with such strong market dominance, any significant price movement for Bitcoin often impacts other cryptocurrencies.

The sudden crash in May 2021 was also market-wide, affecting every single major cryptocurrency. Various contributing factors have been suggested, including comments made by Elon Musk, a crackdown by Chinese authorities, liquidations, and a healthy market correction.

The overall price trend of UMA tends to follow what’s known as a boom-and-bust cycle. This is a pattern in which a period of growing excitement leads to a surge in price before doubt and disillusionment set in and result in a crash.

Factors Influencing The Price of Uma (UMA)

A variety of different things can affect the price of UMA, including project news and developments, the flow of assets on exchanges, public sentiment, and emerging trends in the wider crypto and global economies.

UMA was launched with an initial supply of 100 million tokens but has no hard cap on its max supply. This is because users who help resolve disputes by voting correctly in the Data Verification Mechanism earn an inflationary reward, currently set at 0.05% of the total supply of network tokens.

However, as the DVM could be corrupted by a malicious actor with at least 51% of UMA tokens, the cost of obtaining this amount must be greater than the profit from corrupting the DVM, in order to keep it secure. To achieve this, the protocol may charge fees to financial contracts which it uses to buy and burn UMA.

The supply of UMA can therefore be inflationary or deflationary depending on the number of UMA holders voting and the amount of value locked in the protocol. The level of demand for the UMA token also plays a role in determining its price. The main reason for UMA demand is for earning rewards by participating in the system. As well as correctly voting on price requests in the DVM, users can earn rewards by governing the UMA ecosystem.

As the value of UMA is designed to rise with the total value of collateral locked in the protocol, the number of users will likely affect UMA price. If more projects start building synthetic assets on UMA, they will bring more users to the ecosystem. New developments could also have a similar effect, such as the “yield dollar”, which requires collateral to be locked into UMA’s contracts and was introduced shortly before the price surge in August 2020.

Live Uma Value and Market Cap

The live UMA value varies from moment to moment as it’s dictated by the balance of buyers and sellers on exchanges, which is in constant flux. 

Given UMA’s volatility, its current price can change by a large amount in a very short space of time. The market cap of UMA is equal to the price of UMA multiplied by the number of UMA in the circulating supply.

Max supply is UMA.

Uma Price FAQ

What Is the Highest Price of UMA in EUR?

UMA price history shows that UMA has recorded a peak value of EUR.

What Is the Lowest Price of UMA in EUR?

Kriptomat data confirms that EUR is the lowest recorded UMA value.

How Can I Buy UMA?

There’s no need to consult an expert to tell you how to buy UMA. It’s fast and easy to buy UMA at Kriptomat. UMA is available for immediate purchase at the current UMA price quote of EUR. Current prices are always displayed in the UMA chart.

What Is the Current Price of UMA in EUR?

UMA is available for immediate purchase at Kriptomat. The current price is EUR.

How is the price of UMA calculated?

UMA’s price at any given time is decided by the balance of supply and demand on exchanges. When more people are buying UMA than selling it, the price goes up, and when more are selling than buying, the price goes down.

Why is the price of UMA different on different cryptocurrency exchanges?

UMA’s price is based purely on trading as there is no standard global UMA price, so no one knows what it is “supposed” to cost. The trading volume and liquidity are different for each exchange and those differences are what affect the price.

What will UMA be worth in the future?

It’s impossible to make price predictions with any kind of absolute certainty, as a whole host of different factors could play a role in determining the future value of UMA. However, as the price of UMA is designed to rise with the value of collateral locked in the protocol, a growth in the number of projects and users in the UMA ecosystem could boost the token’s price.

Conclusion

Since UMA joined the market, its price has seen dramatic change, going from lows of little more than $1 to highs of almost $45. The journey hasn’t been smooth, however, as UMA’s volatility has led to surges and crashes along the way.

Many different factors have played a role in determining the price of UMA, including the number of tokens being used to vote in the DVM, the amount of value locked in the protocol, and trends in the rest of the crypto market and wider economy. Its current valuation is derived from the balance of supply and demand in the markets and constantly changes.

If you want to get started with the most user-friendly trading experience on the market, register with Kriptomat today to begin your journey into the world of UMA and cryptocurrencies!