The API3 digital currency experienced a robust surge, surging by more than 100% within 24 hours. Currently, the API3 value is $3.05, marking a remarkable 95% increase while boasting a market capitalization of $260 million. Notably, trading volumes have soared by an astounding 3500%, reaching $343 million.
Esteemed analyst Sell When Over | 9000. sei (@sell9000) illuminates various crucial elements behind the recent surge in API3’s price. A notable factor is the remarkably unfavorable funding rate, reminiscent of past occurrences observed with UMA. Sell9000 asserts that the ongoing negative funding rate, akin to $UMA, imposes a high cost on maintaining long positions, incentivizing buyers to drive higher prices.
Apart from the financial aspects, DWF has purportedly extended a market-making loan of $1.5 million, introducing additional motivations to elevate the price to lucrative thresholds. Sell9000 highlights that this loan from DWF includes the opportunity to acquire tokens within a specific price range, introducing an extra dimension to the market dynamics.
From a technical perspective, The Great Mattsby (@matthughes13) points out the notable breakthrough by API3, surpassing the former resistance level at $2.50 (indicated by the white circle) and establishing fresh resistance at approximately $3.20 (depicted by the yellow circle). This event has triggered an impressive 45% surge in the price of API3, evident in a significant daily candle.
Amid favorable progress, potential obstacles may emerge. When asked about the likelihood of hitting $4 in the near term, Mattsby recognizes the possible challenge of surpassing the resistance at $3.20, marked by the orange horizontal line. However, The market eagerly anticipates additional advancements as API3 maneuvers through these pivotal levels.
Addressing Smart Contract Data Challenges: The API3 Solution
Moreover, Smart contracts often encounter difficulties in obtaining dependable data, and the utilization of application programming interfaces (APIs) has surfaced as a promising remedy to tackle this challenge.
API3 seeks to transform decentralized API versions’ development, administration, and profitability on a grand scale. With the growing influence of blockchain technology across diverse sectors, such as decentralized finance and supply chain management, the API3 team underscores the rising significance of smart contracts providing “accurate and timely real-world data.”
The API3 whitepaper, released in Sept 2020, brought attention to a crucial challenge related to APIs: connectivity. At present, smart contracts face a limitation in establishing a direct connection with APIs to access the latest data, contributing to the increasing demand for oracles.
Although oracles have partially addressed this issue, the sector has faced the “Blockchain Oracle Problem.” As intermediaries between APIs and smart contracts, Oracles brings about heightened expenses and centralization. API3 aims to resolve this dilemma by enabling API providers to manage their nodes.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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