DeFi Coin UMA Doubles All-Time High Following Meme Stock Index Launch

By Jose Antonio Lanz

Did you lose money when Robinhood suspended trading of WallStreetBets stonks? If so, then this new “meme stock index” provided by DeFi protocol UMA wants to be the answer to your fervent prayers—thanks to the magic of crypto.

UMA’s uSTONKS is an index of all the meme stocks pumped on r/WallStreetBets. It launched a couple days ago and now, coincidentally or not, the price of UMA’s native token (also called UMA) is itself pumping like mad: at one point today, the coin was up 122%.

For now, uSTONKS index tracks the prices of Gamestop (GEM), AMC, Nokia (NOK), Blackberry (BB), Silver (SLV), Tesla (TSLA), Palantir Technologies (PLTR), Sundial Growers (SNDL), Apple (AAPL), and Virgin Galactic (SPCE).

For background, you’ll recall that Robinhood restricted trading on GameStop and other assets like Dogecoin during one of the largest short-squeezes in recent years—it was all caused by an army of amatuer traders who just wanted to watch the "loss porn." This move then created a market imbalance that led to the meme stocks' price plunge.

It’s hard to say what the impact of UMA’s index on the WallStreetBets community will be just yet, but, if nothing else, the index appears to have had a positive impact on the platform’s token.

Not only did UMA’s price shoot up, it doubled its previous all-time high. It’s now trading at around $35.45.

UMA broke through the $12 resistance that had been key in determining the token price since September 2020. After that, the rest was history.

Another factor to consider is the recent buzz around DeFi. AAVE, also a “DeFi coin,” today spiked and recorded its largest green candle ever.

After breaking the $320 barrier yesterday and setting a price record, AAVE embarked on an unprecedented rally for the token. It began Wednesday with a price near $300 and ended the day at over $380.

And today’s been even better. The cryptocurrency climbed to a record $520 before correcting a bit to its current $509. 

With these returns, even bitcoin looks boring. Congratulations to billionaire NBA team owner Mark Cuban, who is enjoying considerable gains in his crypto portfolio today.

Recommended News