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UMA, the indigenous digital currency of the Universal Market Access protocol, has experienced a robust surge, registering an impressive 96% gain in the past 24 hours. Why is the&nbsp;<a target="_blank" href="https://cryptoticker.io/en/top-5-performing-cryptocurrencies-week-5/" rel="noopener noreferrer nofollow">UMA price</a>&nbsp;up and how high can the UMA price go?
<h2 id="h-how-has-the-uma-price-moved-in-the-recent-days">How has the UMA Price moved in the recent days?</h2> <img src="https://cryptoticker-strapi-media.s3.eu-central-1.amazonaws.com/UMAUSD_2024_01_19_17_23_34_1ccccf3aa0.png" alt="">
As of today, the price of UMA stands at $3.94, accompanied by a 24-hour trading volume of $1.32 billion, a market capitalization of $278.02 million, and a market dominance of 0.02%. Over the past 24 hours, the UMA price has surged by an impressive 79.74%.
On February 4, 2021, UMA achieved its peak price of $43.18, marking its all-time high, while its lowest recorded price occurred on May 25, 2020, at $0.967681. Following the all-time high, the lowest price since then was $1.240710 (cycle low), and the highest price reached post that cycle low was $4.06 (cycle high). Presently, the UMA price prediction sentiment is bullish, and the Fear &amp; Greed Index indicates a neutral value of 51.
In terms of supply dynamics, the current circulating supply of UMA is 75.99 million out of a maximum supply of 101.17 million. The yearly supply inflation rate stands at 10.22%, resulting in the creation of 7.05 million UMA over the last year. UMA holds the 21st position in the DeFi Coins sector by market cap, is ranked 7th in the Yield Farming sector, and holds the 54th position in the Ethereum (ERC20) Tokens sector.
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<h2 id="h-why-is-the-uma-price-up">Why is the UMA Price Up?</h2>
According to&nbsp;<a target="_blank" href="https://www.coinglass.com/currencies/UMA" rel="noopener noreferrer nofollow">Coinglass data</a>, the abrupt surge in UMA prices has resulted in short liquidations totaling $3 million in the past 24 hours. Concurrently, trading volumes have experienced an impressive surge of 2000%, reaching $284 million.
Universal Market Access (UMA) holds a significant presence in the blockchain realm, focusing on oracle solutions. It distinguishes itself as a decentralized truth network with a dedicated purpose of documenting and validating data on the blockchain.
The surge in UMA prices has triggered liquidations of short positions worth $3 million, implying that traders who bet against UMA’s price movement faced losses and were forced to close their positions. This can contribute to additional upward pressure on the UMA price as short sellers buy back the cryptocurrency to cover their positions, potentially leading to a further price increase.&nbsp;
Additionally, the substantial increase in trading volumes to $284 million indicates heightened market activity and interest in UMA, suggesting that the price movement is attracting significant attention and participation from traders and investors.
Also, the surge in the price of UMA is associated with&nbsp;<a target="_blank" href="https://x.com/KennyKlarda/status/1748220811838976360?s=20" rel="noopener noreferrer nofollow">certain factors related to its Annual Percentage Rate (APR)</a>&nbsp;earnings on Binance.
<ul>
 <li>$UMA APR Earn on Binance: Binance, a cryptocurrency exchange, is offering an Annual Percentage Rate (APR) for earning rewards on UMA holdings. The APR indicates the potential annualized return that users can earn by holding and staking UMA on the Binance platform.</li>
 <li>APR Reaching 30%+: The APR for UMA on Binance has surpassed 30%, signifying a substantial return on investment for users participating in the earnings program. This elevated APR may attract more users to stake and hold UMA, contributing to increased demand and potentially driving up the token’s price.</li>
 <li>Funding Rate at -2%: The funding rate is a mechanism used in perpetual futures contracts to balance the market and ensure that the contract’s price aligns with the spot market. A funding rate of -2% indicates that traders holding long positions are paying a fee to those holding short positions. This situation could incentivize traders to take more long positions, potentially contributing to the upward pressure on UMA’s price.</li>
 <li>Spread Between Spot and Perpetual Price Above 3.3%: The spread refers to the difference between the spot price (the current market price) and the perpetual price (the price of a perpetual futures contract). A spread above 3.3% suggests a significant price difference between the spot market and the futures market. Traders may exploit this spread for arbitrage opportunities, potentially leading to increased buying activity and contributing to the overall price surge.</li>
</ul>
So, the combination of a high&nbsp;<a target="_blank" href="https://cryptoticker.io/en/binance-news-binance-labs-invests-in-meme-coin/" rel="noopener noreferrer nofollow">APR on Binance</a>, a negative funding rate, and a notable spread between spot and perpetual prices can create favorable conditions for increased demand and positive price momentum for UMA. Traders and investors may find these conditions attractive, leading to a further surge in UMA’s price.
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<h2 id="h-will-uma-continue-to-rise">Will UMA continue to rise?</h2>
With the eagerly awaited Oval launch of the Universal Market Access protocol just around the corner next week, the cryptocurrency is currently undergoing a significant surge.
Over the past year, UMA has demonstrated remarkable resilience and growth, with its price surging by an impressive 103%. This outstanding performance has positioned UMA ahead of 71% of the top 100 cryptocurrencies, showcasing its strength in the highly competitive crypto market.&nbsp;
Notably, UMA has outperformed both Bitcoin and Ethereum, two of the most prominent digital assets. The fact that UMA is currently trading above its 200-day simple moving average further supports its bullish trend, indicating a sustained upward momentum.&nbsp;
Additionally, the cryptocurrency has experienced 17 green days in the last 30, accounting for 57% of the observed period, underscoring consistent positive price action. Furthermore, UMA’s high liquidity, as evidenced by its substantial market capitalization, suggests a strong foundation for continued trading activity and potential price appreciation.&nbsp;
Considering these factors, UMA appears well-positioned for continued success, and the current trends indicate a positive trajectory for the foreseeable future.
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UMA Skyrockets with a Whopping 96% Surge in Just One Day!: Why is UMA Price Up?

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