Altcoin skyrocketed nearly 210% after launching new solution.
As of the time of writing, this relatively unnoticed altcoin, UMA, has experienced a significant surge of nearly 210% from Thursday to Friday this week. This occurred after the project introduced a new cryptocurrency solution. UMA is a dispute resolution and optimistic oracle system with the goal of becoming a "decentralized verification engine."
On Thursday, UMA was trading around $2.01, and on Friday, its price skyrocketed to a high of $6.22, marking a remarkable increase of 209.45%. Currently, the token has retraced somewhat and is trading at $4.51.
UMA's impressive surge was driven by the introduction of a new product capable of "reclaiming" tens of millions of dollars from the lending protocol each year. However, both the project and its founders have not provided many details about the upcoming deployment, only stating that "Next week, UMA will release something that will easily reclaim over $100 million lost annually to MEV."
According to the explanation from Binance Academy, MEV (Maximal Extractable Value) is a strategy aimed at maximizing profits through the process of producing a new block in the blockchain. This is achieved by rearranging and altering the order of transactions during block creation, with the goal of ensuring the highest possible collection of gas fees and block rewards.
MEV often occurs in transaction models not only in buying and selling orders but also in multi-component transactions such as smart contracts. This creates opportunities for those implementing MEV strategies to leverage market volatility and the structure of transactions to maximize profit
