all about cryptop referances
While the crypto economy has lost significant value, losing more than $2 trillion since the peaks recorded in late 2021, much value was erased from smart contract platform tokens and decentralized finance protocols (defi). One sector of the defi ecosystem that has seen heavy losses this year is the blockchain oracles space, as a large number of oracles secure much less value than they did seven months ago. While there are more than two dozen oracles today and there were only 17 at the beginning of the year, the total value secured by oracles has fallen by 61.74% since mid-February.
Blockchain oracles have seen significant growth since the inception of these protocols, but in 2022 the protocols secure much less value than they did seven months ago. A blockchain oracle is essentially middleware that connects a blockchain network to external systems via smart contracts, and the medium provides data sources that are verifiable and shared in a decentralized manner.
Data from defillama.com shows that Chainlink is the largest blockchain oracle in terms of total value secured by all oracles, and the Chainlink oracle secures 206 protocols. Chainlink commands about 45% of the $25.612 billion secured by 31 oracles today, and the oracle is followed by projects such as Makerdao, Winklink, Pyth and Band.
Maker commands $7.66 billion, while Winklink secures $4.42 billion and Pyth secures around $584.03 million. The fifth largest oracle according to defillama.com polls is Band, with about 1.55% of the total $25.61 billion secured, or about $396 million. While $25 billion is quite a lot of funds secured by decentralized blockchain oracles, it is 61.74% less than the funds oracles secured on February 12, 2022.
At that time over seven months ago, Chainlink’s total value was greater than the total value secured by 31 oracles today. On February 12, Chainlink secured $42.44 billion and Makerdao secured $17.14 billion that day. 17 oracles were monitored by defillama.com at that time and collectively secured $66.946 billion in value.
Seven months ago, the top five oracles were Chainlink, Makerdao, Band, TWAP and Pyth. Also, while Chainlink secures 206 protocols today, back then it only secured 133 protocols. Four of today’s top five oracles also have native tokens, and token values are down a lot since their all-time highs (ATH).
Chainlink (LINK) is down 85% since its ATH recorded on May 10, 2021, and makerdao (MAKER) is down 84% from its ATH on May 3, 2021. Winklink (WIN) is down 96% since April 5, 2021, and the ribbon protocol ( BAND) is down 94.7% since the coin’s ATH recorded over a year ago on April 15, 2021. Despite the loss in value, native tokens are more valuable than they were at inception.
LINK, for example, is up 5,053.1% higher in the last five years against the US dollar since November 29, 2017. BAND is up 496% since its inception, WIN is up 168.4% over the last two years, and MAKER has gained 449.1% in two years as well.
Moreover, the total value secured by oracles is much greater than it was three years ago. Blockchain oracle proponents believe the technology could disrupt a number of industries as they grow, as legacy oracles today provide data that is dubious at best.
What do you think of the total value secured by blockchain oracles losing 61.74% since mid-February? Let us know what you think about this topic in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
