API3, an altcoin, has recently experienced a price surge, reaching $3.3. Despite a pullback from its resistance zone, the introduction of a new product could bolster its value in the medium to long term. The cryptocurrency community is keen to understand the factors behind API3’s rising value and its latest offering.
Understanding API3’s Market Momentum
Decentralized Finance (DeFi) protocols rely heavily on Web3 service providers for a range of functions, such as triggering liquidations and processing transactions. These services are crucial for DeFi’s operation and profitability, with companies like Chainlink dominating the market for DeFi price feeds.
The costs associated with these services are substantial. For instance, Aave has paid over $100 million in liquidation premiums from a total of $2 billion in liquidated positions over three years. While these expenses are necessary, there is room for efficiency improvements, which API3 aims to address with its new product.
API3 has announced the launch of the OEV Network, a ZK-rollup platform designed to optimize the cost and functionality of oracle services. The OEV Network functions as an auction platform where the rights to update specific data streams are sold to the highest bidder, allowing instant revenue generation for decentralized applications (dApps).
The OEV Network’s integration with Polygon CDK, a framework for creating ZK-rollups, has been praised by Polygon Co-Founder Sandeep Nailwal. He commends API3 for its innovative approach to problem-solving and believes the OEV Network will significantly benefit developers within the ecosystem.