- UMA token has surged to its highest point since August 2022.
- The Total Value Secured (TVS) in the ecosystem surged to $774M.
- The developers will launch Oval next week.
UMA crypto price surged this week as the ecosystem continued to gain market share in the oracles industry. The token surged to a high of $3.8575, its highest point since August 2022 even as Bitcoin and other altcoins consolidated. It has surged by more than 100% from its lowest level this year, giving it a market cap of over $279 million.
UMA ecosystem growth
Universal Market Access (UMA) is a leading player in the blockchain industry, where it offers oracle solutions. It describes itself as a decentralized truth network that records and verifies data into a blockchain.
According to DeFi Llama, it is the 9th biggest Oracle network in the world after the likes of Chainlink, Chronicle, WINKLink, Pyth, and Binance Oracle. Some of the blockchain networks that use its platform are Across, Outcome Finance, Polymarket, and Jarvis Network.
There are two main reasons why UMA token went parabolic. First, data shows that the network is growing. According to Dune Analytics, UMA and oSnaps have seen their Total Value Secured (TVS) surge to over $774 million, a record high.
This TVS jumped as the number of companies using the network rose. On Thursday, Index Coop, a company that builds decentralized structured products became the latest entry to the network.
The other recent addition to the network was B Protocol, a DeFi economic mitigation hub that aims to be a leading player in the risk management industry.
UMA is also surging ahead of the upcoming Oval launch, which is set to happen next week. In a tweet, the developers said that the new service will help to reduce risks in the DeFi industry. Precisely, the service will help deal with the challenge of maximal extractable value (MEV).
Meanwhile, data by Coinglass shows that the total futures open interest for UMA surged to $47 million, a record high. This is a sign that there is demand for the token in the futures market.
UMA price forecast
The weekly chart shows that the UMA token price bottomed at $1.2400 in 2023 as the crypto winter continued. Now, it has jumped sharply although it remains sharply below its all-time high. It has moved slightly above the key resistance at $3.20, the highest swing on May 1st.
UMA token has also jumped above the 50-week moving average while the Relative Strength Index (RSI) and the Stochastic Oscillator have pointed upwards. Therefore, I suspect that the token price will continue rising in the first quarter of the year as bulls target the key resistance at $5. In the short term, however, I suspect that it will pull back as some investors take profits.
