An under-the-radar altcoin skyrocketed by nearly 210% between Thursday and Friday this week after the project teased the launch of a new crypto solution.
UMA is an optimistic oracle and dispute arbitration system that aims to serve as a “decentralized truth machine.”
The 156th-ranked crypto asset by market cap was trading around $2.01 on Thursday and then exploded in price to a high of $6.22 at one point on Friday, a staggering increase of 209.45%.
The token has since partially retraced and is trading at $4.51 at time of writing.
The asset’s massive gains materialized as UMA teased a new product that would “reclaim” the tens of millions of dollars lending protocols lose each year to maximum extractable value (MEV).
Neither the project nor its founders provided many details on the upcoming rollout:
“Next week, UMA is launching something that will elegantly reclaim >$100 million of free money lost each year to MEV.”
MEV is a strategy to milk as much additional profit as possible from the production of a new block (outside of gas fees and block rewards) by messing with the order of transactions, according to Binance Academy.
Explains Binance,
“Block producers are best placed to do this as they have the ability to select and order transactions.
However, other network participants (known as searchers) can also pay fees to place transactions should they see an MEV opportunity, such as arbitrage, front-running, or liquidation. MEV is most often found in smart contract-enabled networks where blockchain transactions include more complex information.”
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Source: https://dailyhodl.com/2024/01/20/under-the-radar-altcoin-skyrockets-by-nearly-210-after-teasing-launch-of-new-crypto-solution-on-social-media/