UMA DeFi Token Continues to Soar Following Protocol Launch, Up 63% in a Week

By José Oramas November 15, 2021 In Crypto News, DeFi, Tokens

UMA, the native token of Universal Market Access, skyrocketed more than 60 percent over the past three days after the launch of Across Protocol, a bridge from layer 1 to layer 2 on the UMA mainnet. 

Across Protocol is Live

The UMA token’s performance was average at the beginning of the last week but that changed quickly after the announcement of the Across Protocol, which will provide a secure and fast bridge for DeFi users, allowing them to bridge USDC, ETH and UMA from Arbitrum back to the Ethereum mainnet. 

The bridging function works by offering incentives for relayers to offer short-term loans to users on L1, which are repaid after two hours from a liquidity pool on L1. This pool is refilled when the funds arrive from L2 transactions. These transactions are insured by UMA’s Optimistic Oracle.

Across Protocol Medium post

The token has been rallying rapidly since then, up 63 percent to a market cap of US$1.05 billion in the past seven days. Data from Messari shows the token has achieved 100.52 percent in YTD gains, now trading at a range of US$16.50 in most exchanges.

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UMA was created in December 2018 as a protocol designed to allow users to create synthetic assets on the Ethereum blockchain. UMA started its bullish rally on December 23, 2020, when the currency broke above the US$9.35 mark, trending upward along with many other altcoins.

Another token that has seen tremendous trading volume is SCRT, the privacy token of Secret Network, a DeFi protocol that aims to be a privacy-centric platform for the community.

José Oramas
Author

José Oramas

José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.

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