UMA, the decentralized finance (DeFi) token, has experienced an impressive 28.7% increase over the last seven days, according to data from CoinMarketCap. In a week that was characterized by market losses and low gains, UMA demonstrated significant resilience, establishing itself as one of the biggest weekly winners.
While most of the market has been in awe of the stunning bullish performance of the popular meme coin PEPE, UMA’s remarkable price gain has brought its investors considerable profit and significant attention.
Originally trading at around $1.95, UMA made no notable movements for two days. It then attempted an uptrend but failed to break the resistance mark at $2.31. Yesterday, on May 5th, UMA experienced a surge in its market price, rising by over 43% to break the $3 mark for the first time since August 2022.
Though UMA’s price has since slipped from such heights, the DeFi token appears to have found support and could be preparing for another breakout. At the time of writing, UMA trades at around $2.55, with a loss of 0.22% in the last 24 hours. During the same period, the token’s trading volume rose an incredible 438.82% to a value of $336.70 million.
Interestingly, UMA’s price growth is also reflected in the growing traction on its platform. According to data from Stelareum, the Total Value Locked (TVL) of the UMA protocol has risen from $10.33 million to $11.12 million in the last two days.
Amidst UMA’s impressive market performance, the underlying network appears to be making significant progress on the adoption front. According to a tweet from the UMA protocol yesterday, two new DAOs will integrate their latest blockchain product, the oSnap module, a unique governance solution that aims to combine on-chain and off-chain governance systems.
The Optimistic Snapshot Execution, or oSnap, allows for “the execution of transactions that happen off the chain instantly, but with protection against malicious proposals.” The last protocol to integrate the oSnap module was the popular decentralized exchange ShapeShift.
However, UMA generally functions as a decentralized platform that enables other DeFi protocols to build “priceless” financial contracts on Ethereum while providing them with publicly verifiable market data.
Essentially, this project acts as an oracle that grants various DeFi protocols the underlying infrastructure to create fast, efficient, and secure synthetic derivatives on the Ethereum blockchain.
Image source: Binance Research, Chart from Tradingview.