The crypto economy lost significant value. It has dropped more than $2 trillion from its highs at the close of 2021. However, smart contract platform tokens have seen a lot of value disappear. One sector of the defi ecosystem that’s recorded heavy losses this year is the blockchain oracles space, as a great number of oracles secure a lot less value than they did seven months ago. Although there are over two dozen oracles now, and only seventeen at the start of this year’s beginning, oracles have secured 61.74% less value since February.
Today There’s a Lot More Blockchain Oracles but Less Value Secured by All of Them Since Mid-February
Although blockchain oracles saw significant growth in the seven-months prior to their inception, they now hold less value than the ones that existed just seven months earlier. The blockchain oracle acts as middleware, connecting a blockchain network with external systems through smart contracts. It provides reliable data sources and can be shared decentralised.
Defillama.com data shows Chainlink as the biggest blockchain oracle by total value. The Chainlink oracle also secures 206 protocols. Chainlink holds approximately 45% of $25.612 billion in total security, which is secured by 31 oracles currently. Projects such as Makerdao and Winklink follow the Chainlink oracle.
Maker is valued at $7.66 Billion, Winklink has $4.42 Billion and Pyth stands at $584.03 M. Band is the fifth largest oracle, accounting for 1.55% or $396 million of total $25.61 trillion. While $25 billion is quite a bit of funds secured by decentralized blockchain oracles, it’s 61.74% less than the funds oracles secured on February 12, 2022.
At that time over seven months ago, Chainlink’s total value was larger than the total value secured by 31 oracles today. Chainlink had $42.44 billion in cash and Makerdao $17.14 million on February 12. At the time defillama.com was monitoring 17 oracles and together they secured $66.946 million in value.
The top five oracles in the world seven months ago were Chainlink and Makerdao. Band, TWAP and Pyth. Chainlink now has 206 protocols, but it had 133 back in 2007. Four of today’s top five oracles have native tokens as well, and the token values are down a great deal since their all-time highs (ATH).
Chainlink’s (LINK) has dropped 85% and makerdao’s (MAKER), is at 84% below its ATH, May 10, 2021. Winklink (WIN) has shed 96% since April 5, 2021, and band protocol (BAND) is down 94.7% since the coin’s ATH recorded over a year ago on April 15, 2021. Native tokens have a higher value than ever since their inception, despite the decrease in value.
LINK is, in fact, up 5.053.1% over the five-year period against the U.S. dollars since November 29, 2017. BAND has increased 496% since inception. WIN is up 168.1% in the past two years and MAKER is up 449.1% over the same period.
Oracles have a much greater total value than they did three years ago. Proponents of blockchain oracle believe that the technology can disrupt many industries. Legacy oracles provide information that’s questionable, and today’s Blockchain Oracles will not.
Do you have any thoughts about the 61.74% loss in total value of blockchain oracles since February mid-February? Comment below and let us know how you feel about the subject.
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