UMA cryptocurrency could see a 200% increase after Elon Musk's X and Polymarket deal. The Optimistic Oracle provider could also attract more users and businesses.
After the deal between Elon Musk's social media X and Polymarket , the Optimistic Oracle provider could also attract more users and companies. In addition, the deal could impact the price of the UMA cryptocurrency , with a potential rally of 200%.
The cryptocurrency market has been in a roller coaster over the past week. Many expected Bitcoin to dip below $100,000, but over the weekend, the leading cryptocurrency bounced back above $106,000, giving momentum to other tokens.
Among the altcoins that saw decent gains was UMA , the native cryptocurrency of the protocol of the same name, an OG crypto project that not only rejected lower lows but is already up more than 20% over the weekend.
UMA Cryptocurrency Rises: Will the Token Soar 200%?
At this rate, UMA has a good chance of extending last week’s gains and the token could break out of a key resistance level that has capped gains in Q2 2025.
On June 6, UMA cryptocurrency briefly broke above $1,418 before cooling off. However, it regained momentum over the weekend and, encouragingly, prices remain within the June 6 bullish bar, a positive sign.
Technically speaking, if attempts to push prices down are repelled, the uptrend remains intact.
Analysts have been closely watching the resistance at $1,418 and support at $1,021 . Now, at the time of publishing, UMA price has risen to $1.69 . If the bullish trend continues, the cryptocurrency can surge by 200% to the December 2024 highs, easily outperforming even the major cryptocurrencies.
Impact of the Polymarket-X deal
Several tailwinds could push UMA to Q1 2025 highs. If Bitcoin’s recovery can drive demand, Polymarket’s recent partnership with X could be a trigger.
Polymarket is the world's largest prediction market, with millions of transactions per day, while X , the social media platform owned by Elon Musk, is one of the most used networks with millions of daily active users.
The UMA protocol is an optimistic oracle and competitor to Chainlink that also serves Polymarket as a customer.
On June 6, Polymarket announced its partnership with X, effectively positioning itself as the platform’s exclusive partner for the prediction market.
With this agreement, the UMA protocol gains greater visibility, as Polymarket is indirectly integrated into the social fabric of one of the most influential social media platforms, with over 200 million daily active users.
According to one observer, with this deal X would gain “greater political influence, a new revenue engine, and a gateway to cryptocurrencies .” With Polymarket in the picture, the social media platform now “converts the noise of debate into prices that reveal collective belief . ”
More bets, more revenue
The deal will lead to greater transparency in news, as X users will now have access to real-time predictions on events like general elections.
Polymarket could benefit from increased real-time user engagement as millions of people seek to profit from the prediction market.
The anticipated demand could drive UMA token prices higher because the UMA protocol provides data verification services, as middleware, ensuring that Polymarket operates securely and transparently through its Optimistic Oracle service.
With the expected increase in traffic after X integration, UMA could see revenue growth each time a market is auto-resolved.
Optimistic Oracle is used by EigenLayer, Jarvis Network, Across Protocol and others. According to DeFiLlama, the UMA protocol has a total value locked ( TVL ) of over $228 million, but this figure could increase in the coming weeks.
