DeFi

Api3DAO OEV Network Launched and Market Impact » The Merkle News

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Last week, API3DAO launched its OEV Network, an innovative on-chain solution designed to capture oracle extractable value (OEV) for decentralized applications (dApps) and DeFi protocols.

This initiative aims to save millions of dollars for DeFi protocols by improving their efficiency and reducing operational costs.

Following its launch, the API3 token has seen a significant surge over the past week, although it has dropped 5% in the past 24 hours. According to on-chain reports, seven hours ago, an early investor in @API3DAO deposited 3 million API3 tokens (worth about $6.17 million) on Coinbase after three years of inactivity.

Additionally, Whale wallet 0x9b16 received 1.3 million API3 tokens ($4.67 million) at the end of 2021 and 2.03 million API3 tokens ($3.01 million) at the end of 2022 from a Timelock contract. This wallet recently deposited 200,000 API3 tokens ($411,000) on Binance and 68,500 API3 tokens ($141,000) on OKX.

An analyst at X noted that the last time API3 was in the daily oversold zone, it saw a surge of nearly 100%, indicating a solid RSI divergence at the lows. The recent price decline has filled the January 2024 inefficiency gap, and currently, the price is struggling to reclaim the crucial $2 level, showing promising signs.

API3’s OEV network aims to revolutionize DeFi protocols by providing next-generation oracle services. API3 technology is already integrated into 33 EVM blockchains, with plans to expand to 40 EVM L1 and L2 chains. The total value secured (TVS) by API3 has grown from $20 million in January 2024 to over $1 billion in May 2024.

Compared to similar protocols like Chainlink (LINK) with a market cap of $8.4 billion and Pyth (PYTH) with a market cap of $1.1 billion, API3 remains highly undervalued with a market cap of just $230 million. This undervaluation suggests significant growth potential for API3 as it continues to expand its services and integrate with more blockchains.

TLDR: API3 aims to save millions for DeFi protocols with its OEV network. With expanding blockchain integrations and growing TVS, API3 is positioned as an undervalued asset compared to its peers, suggesting a bright future.

Disclosure: This is not trading or investment advice. Always do your research before purchasing cryptocurrency or investing in any service.

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Image source: hryshchyshen/123RF // Image effects by Colorcinch



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