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UMA token soars above the $1 billion mark!

Photo of: Janeth Diamond
by Janeth Diamond

DeFi Markets have been soaring high in the last few months with total value locked surpassing its previous day TLV now touching the $8 billion mark. While Chainlink still retains its numero-uno hold at the top of DeFi market cap rankings, there is a secondary battle going on for the second slot between UMA, Aave, and Yearn. Finance. 

Source: DeFi pulse

Look at the curve above, and observe the 90-day trend. Such growth is hard to neglect and should be analyzed to make the best of it.  Now that the month of August is over and September intends to tell a new DeFi story altogether, many tokens have seen a remarkable chain including UMA. Last Tuesday UMA witnessed a bounteous market cap of around $392 million, and this week its market cap zoomed up to $1.1 billion which proves why it is close second spot call after Chainlink already projecting a mammoth $5.96 billion market place. 

Here’s a look at top 10 DeFi by Market Cap

Comparing UMA and Yearn.Finance’s growth journey in a week, Yearn.finance stood at a market cap of $404 million last week which was only marginally higher than UMA. but in a week’s time, UMA progressed along fine to take Yearn.finance over. Not that Yearn.finace has not done well, but it’s marching ahead has been a little slower than UMA as it settled for a $950 million mark as of today. Counting among the top tokens, we can’t miss out Aave which shows its relative stability in the DeFi market.  It has moved down only by a bit from $988 to $957 in the last few days. While this might seem a little insignificant as of now, but it will be wise to observe the trend for some more time to understand the trajectory. 

DeFi markets have been very dynamic because changes are so rampant in it and within a short span. Consider sushi for instance, last week it was not there, but this week it already has capped $188 million standing on the 74th position on CoinMarketCap’s ranking. 

Universal Market Access or UMA as we know it is a much proclaimed Decentralized financial contracts platform. It uses the ERC-20 standard from the ethereum blockchain which lets users create their own synthetic tokens. In the world of DeFi users want to rake in money as much as they can but with DeFi’s changing dynamics every week, it will be hard to say what will be the case next week unless someone is up for guess. That is why, it is important to look at a medium term journey of the token, understand from the latest posts on different platforms and then decide. A study of the trends will in a long way help you try to project what might come the next week. Look at the chart below from CoinGecko. It is a 90-day analysis of UMA, the token which is currently on spot 2. While June and July have been a little stagnant, we see its meteoric rise beginning from 12’th of August. 

The trends are worth observing for every token that is important to try to make sense out of the trends and trying to predict the next week.