UMA (UMA) has recorded an impressive 28.7% gain in the past seven days data by CoinMarketCap. In a week marked by market losses and small gains, the DeFi token showed a lot of resilience to emerge as one of the biggest weekly gainers.
While most of the market is awestruck by the astounding bullish performance of the popular meme coin – PEPE – UMA’s remarkable price gains have generated much profit for its investors, attracting a lot of attention.
UMA’s price action
Initially, UMA started trading around a $1.95 price region for the week. The token showed no significant movement until two days after that, when it attempted a bullish run but failed to break past the $2.31 resistance level.
On May 5, i.e. yesterday, UMA experienced a surge in market price, gaining more than 43% to go from $2.18 to break above $3 for the first time since August 2022.
While the price of UMA has since fallen from such high levels, the DeFi token seemed to have found support and could be gearing up for another breakout.
At the time of writing, UMA is trading near USD 2.55, down 0.22% in the past 24 hours. During the same period, the token’s trading volume has increased by a whopping 438.82% to a value of $336.70 million.
Interestingly, UMA’s price growth is also mirrored by growing traction on its platform. Based on data from Stelareum, Total Value Locked (TVL) on the UMA protocol has grown from $10.33 million to $11.12 million in the past two days.
UMA trading at $2.523 | Source: UMAUSD Chart on Tradingview.com
UMA protocol in place to include new partnerships
Amidst the impressive market performance of the UMA token, the underlying network seems to be making a lot of headway in terms of adoption.
According to a tweet yesterday, the UMA protocol announced that two new DAOs will integrate its latest blockchain product, the oSnap module, a unique governance solution aimed at merging on-chain and off-chain governance systems.
The Optimistic Snapshot Execution, or oSnap as it is known, enables the “onchain execution of transactions executed off-chain instantly, but with protection against malicious proposal execution.”
The last protocol to integrate the oSnap module was the popular decentralized exchange, ShapeShift.
That said, UMA generally functions as a decentralized platform that allows other DeFi protocols to build “prohibitive” financial contracts on Ethereum while providing them with publicly verifiable market data.
Essentially, this project functions as an oracle, giving various DeFi protocols the underlying infrastructure to create fast, efficient, and secure synthetic derivatives on the Ethereum blockchain.
Featured image: Binance Research chart from Tradingview