UMA: Everything you need to know

Source: CoinMarketCap

Over the past couple of years, we have witnessed a lot of industries coming and going but only a few of them were able to mark their presence in the global marketplace and one such industry which has swiftly risen and managed to become one of the most valuable industries of all time is the crypto world. This particular industry has had a surge in its growth and popularity recently and has been more than successful in luring in potential investors from all across the globe.

Having said that, I believe, most of you are already familiar with the basics of the industry but, if for some reason that’s still not the case, let me help you with that first.

To begin with, cryptocurrency as the name suggests is nothing but simply a form of virtual or online currency which just like the physical form of money can be made use of for a variety of purposes including the purchase and sale of goods and services as well as for the purpose of trade and exchange over crypto exchanges available online.

In other words, the crypto industry is a decentralized platform that uses blockchain technology for all its operations as well as for recording and verifying all the transactions that happen over the network in order to completely eliminate the so-called risk of double spending and counterfeiting.

Also, being decentralized, the crypto world is more than capable of stepping outside the overall control and jurisdiction of central authorities and can work freely without any unnecessary government interference as well.


Though the industry has been around for a long time now, some of you might not be aware of its journey. When the industry was first introduced in the global marketplace, there were not many people looking to be a part of it as they had a lot of doubts with respect to the safety of their money and the return they could expect from their investments.

On the contrary, the cryptocurrency industry that we know today is booming like anything and has an entire pool of currencies for investors to pick from, with newer ones coming in with each passing day and numerous new investors joining in every hour.

Now that we have established as to how big a success is the crypto industry, it is worth noting that, some of the major contributing factors for this extraordinary success includes its portability, ease of use, the convenience it offers, its intuitive nature, uncertainty as well as high-profit margins of course.

You should probably be aware of the fact that being volatile, the overall price fluctuations in the crypto world are almost instant, thus making it even more difficult for you to predict the changes. Therefore, it is important to keep in mind that, if the industry is providing you with an opportunity to earn huge profits and make quick money, if not done right, you could also end up having significant losses as well.

Now that you have a brief backstory about the crypto world, you will be able to have a much better understanding of what we have with us today, UMA. To know more, I suggest you read further!

Everything to know about UMA

Source: YouTube

Universal Market Access or as commonly referred to as UMA is nothing but a protocol that is used for the creation of synthetic assets based on the popular Ethereum (ETH) blockchain. In other words, UMA is simply an Ethereum token that is said to describe itself as an open-source protocol that is known to allow developers to design as well as create their own synthetic assets and financial contracts.

Also, it is worth mentioning that, the protocol is said to get its name from the team’s goal of creating universal market access, therefore, UMA. For those of you wondering, what exactly are synthetic assets? Allow me a chance to explain. Synthetic assets are a class of assets that are known to represent various underlying assets and have the same value.

As mentioned, UMA specifically allows its users on the platform to design as well as create self-enforcing and self-executing financial contracts that are secured by economic incentives and run them on one of the biggest names in the industry, the Ethereum blockchain.

Before we move on any further, it is worth noting that, UMA was co-founded by Allison Lu along with Hart Lambur and was launched about four years ago, back in 2018. Not just that, Universal Market Access is considered the world’s largest asset manager for virtual currencies and is known to have UMA as its native utility token which can be used for a variety of purposes on the platform itself.

Source: Publish0x

In addition to this, ever since UMA has been gearing to introduce its Across protocol, the platform has witnessed a major surge in its price by a huge leap. Also, since the protocol has already been launched, the upward momentum has not slowed yet and is expected to continue for some time now as the coin is gaining a lot of growth and popularity in the crypto marketplace.

Speaking of Across protocol, it is worth mentioning that, this particular protocol is said to be the cheapest, fastest as well as the most secure bridge between Layer 1 and Layer 2, thus taking the value of the token ever higher onto new heights.

Also, with the future of the entire blockchain industry being said to be based on interconnectivity, the Access protocol is known to focus on achieving more gains, thus leading to the surge of the UMA token.

Furthermore, UMA is said to allow other counterparties to digitalize as well as automate any and all real-world financial derivatives, including futures, total return swaps, or contracts for difference (CFDs). Not just that, the platform also enables the development of self-fulfilling derivative contracts that are based on virtual assets, just like any other cryptocurrency.

What makes UMA special?

Source: Moralis Academy

To begin with, the main idea behind UMA or Universal Market Access is reflected in its name as by developing a protocol for the overall development of financial contracts as well as synthetic assets on the blockchain, it seeks to decentralize as well as democratize the financial derivatives market.

Also, it is known to preclude individuals from participating in traditional financial markets as they are said to have high barriers to entry in the form of custody requirements as well as regulations.

Apart from this, it is often very difficult for would-be investors and traders to participate in markets outside of their local financial system. As a matter of fact, this prevents the overall emergence of a truly inclusive global financial market and thus, limits participation to just a handful of institutions that are able to afford the necessary due diligence as well as legal procedures.

In addition to this, as mentioned, UMA contracts are based on the Ethereum blockchain, whose permissionless nature allows any user on the platform to create, trade, and run digitalized derivatives from anywhere on the planet. This accessibility is rather important for developing economies all across the world, where financial institutions are frequently far from maturity, thus forcing local market participants into relative isolation.

Now that we have talked much about UMA, some of you must be wondering, whether or not it is a good idea to invest in the platform? If that’s the case, then let’s find out, shall we?

Investing in UMA

Source: Crypto Adventure

As of today, the price of UMA is about 9.73 US dollars with a twenty-four-hour trading volume of 307,463,224 dollars. Not just that, in just the past twenty-four hours, the value of UMA has gone up by 5.23 percent, and with the current market cap of 632,441,357 US dollars, UMA is currently placed at #122 position as per the CoinMarketCap rankings.

Also, it is worth mentioning that, the current circulating supply of UMA is 64,974,850 UMA coins, with a maximum lifetime supply of around 101,172,570 UMA coins. In just the past week alone, the price of the platform has risen by 1.74 percent.

Reading so far, you must have gotten a fair understanding of the platform and by now, you should be able to figure out on your own whether or not investing in UMA is the right thing for you to do. Seeing what it has to offer when combined with its performance in the recent past as well as its plans for the near future, I certainly believe that UMA can prove to be a profitable investment shortly, which is likely to provide you with higher returns and it is a possibility that your current investment may increase in value. But again, nothing can be said for sure! 

Source: Nomics

As mentioned at the very beginning, crypto is a highly volatile marketplace and is extremely uncertain. Thus, It is very important for you to understand the fact that just like any other currency in the crypto marketplace, UMA does have its own risks as well and you should invest only if you are willing to take those risks and bear any and all losses if at all necessary.

If you are wondering, where can you buy UMA? Let me help you with that. Currently, UMA is available on all major crypto exchanges but, some of the popular exchanges that have UMA listed on them include Binance, KuCoin, Huobi Global, OKEx as well as Bybit to name a few.  

In conclusion, what are your thoughts on UMA? Do let us know in the comments area below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!

Also read: Gitcoin: Everything you need to know