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UMA Token Price Skyrockets 90% Following Tease of New MEV-Focused Solution

1 Mins read

The native token of the decentralized finance (DeFi) protocol Uma saw a dramatic price increase this week, rising 90% after providing hints about a new solution to protect lending protocols from maximal extractable value (MEV). Uma’s OVAL product aims to address the issue of MEV, where block proposers can earn additional income by reordering transactions, costing lending dApps millions annually. Uma stated on social media that lending protocols lose substantial amounts in tens of millions of dollars each year due to MEV exploits, and it’s time to “reclaim that value.” This suggests OVAL will mitigate such losses by detecting and preventing transaction reordering that profits from critical application states.

Price and volume surge on the announcement

Price Skyrockets

News of Uma’s work on an MEV solution aligned with protecting lending protocols resulted in a sharp increase in its token price and trading volumes. Data from market trackers shows the token value rose from $2 to $3.80, a jump of 90% within a short timeframe. This price surge was a welcome change after months of the token trading below its current level. Daily trading volumes also multiplied as Uma’s MEV-centered plans spread. The protocol’s total market capitalization is now nearly hitting $300 million again, marking its highest point since mid-2022.

While OVAL represents a new direction, Uma originated as a protocol facilitating synthetic asset creation on Ethereum. It focused on expanding the range of tradable assets for investors by allowing any asset to be represented as a digital token. More recently, Uma has mainly operated an optimistic oracle solution centred on verifying off-chain data inputs on-chain through economic incentives and dispute mechanisms. This current product aligns with Uma’s goal of bringing more trustless functionality to the DeFi landscape.

Despite Uma’s token price surge, the wider cryptocurrency market has seen lesser investor enthusiasm this week. Total crypto market capitalization declined 2.3% over the past 24 hours to around $1.71 trillion based on tracker data. This reflects an overall down period after weeks of gains, with Bitcoin selling off slightly to trade near $41,000 following its recovery rally in prior months.

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Matthew Garcia is a crypto article writer with over 5 years of experience in the industry. He is passionate about writing about the latest news and trends in the cryptocurrency space, and he has a deep understanding of the technology behind blockchain. Matthew Garcia has written for a variety of publications, including CoinDesk, The Block, and CryptoSlate. He is also a regular contributor to the Ailtra.io blog, where he writes about the latest developments in the Ailtra ecosystem. Matthew Garcia is a skilled writer with a knack for explaining complex technical concepts in a clear and concise way. He is also a creative writer who is able to produce engaging and informative content. Matthew Garcia is always up-to-date on the latest news and trends in the crypto space, and he is always looking for new ways to share his knowledge with others.
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