As the cryptocurrency market grows more established, users feel more comfortable branching their investments out into new financial vehicles. Universal Market Access, or UMA, capitalizes on this by introducing a platform that helps create new forms of “synthetic asset” – including crypto-derivatives and other novel investment types. Derivatives are popular as a means of fractioning assets in a more palatable manner – allowing users to profit from assets that are prohibitively expensive to own.
High-profile and expensive NFTs draw attention, but few average investors can profit from them. Synthetic assets allow users to invest in their perceived value, benefiting from increases in price without directly investing in the NFTs themselves. UMA’s platform revolves around this type of derivative, offering users exposure to asset classes they may otherwise be unable to explore.
Derivatives and their Popularity in the Crypto-sphere
Derivatives exist as a traditional asset, traded across most major exchanges and available in various shapes and sizes. Yet, they face strict regulation in legacy systems – potentially stymying innovation within the financial sector. Cryptocurrency’s constant disruption of financial platforms factors in here as well, allowing developers to create any number of new and unique use cases.
Cryptocurrency users, already markedly less risk-averse than the average investor, flock to derivatives as a means of amplifying profits. This fact allowed UMA’s price to rally considerably in recent days, bringing an increase in user activity alongside. Users naturally gravitate to platforms that offer the greatest array of choices – and UMA’s ecosystem allows effectively unlimited options.
Universal Market Access & UMA Token
The native coin of Universal Market Access, UMA exists for a variety of purposes. Alongside investing in derivatives on the platform, it also represents a governing share in UMA itself – a common system for cryptocurrency businesses. UMA brings together cutting-edge blockchain technology with a team well-founded in traditional finance – both founders previously worked for Goldman Sachs.
The most recent price moves likely came as a result of UMA’s oracle network – a technology increasingly vital to smart contract and platform construction. Creating a means to access real-time data within decentralized applications is the next step in cryptocurrency’s evolution, and systems like UMA and Chainlink are leading that charge.