Blockchain Oracle Holdings Fall 61% in Value in 7 Months, Chainlink Leads 45% – Defi Bitcoin News

The crypto economy has lost a lot of value, losing more than $2 trillion from its record high at the end of 2021, but much value has been lost from smart contract platform tokens and decentralized finance (defi) protocols. . His one sector in the defi ecosystem that has recorded big losses this year is the blockchain oracle space. This is because numerous oracles have secured far less value than he did seven months ago. While there are now over 20 oracles and only 17 at the beginning of the year, the total value secured by oracles has decreased by 61.74% since mid-February.

There are more blockchain oracles today, but since mid-February, the value guaranteed by all of them has diminished.

Blockchain oracles have seen significant growth since the launch of these protocols, but in 2022 the protocols are securing far less value than they were seven months ago. A blockchain oracle is essentially middleware that connects a blockchain network to external systems via smart contracts, and this medium provides a source of data that is shared in a verifiable and decentralized way.

According to data from defillama.com, Chainlink is the largest blockchain oracle in terms of total value secured by all oracles, with Chainlink oracles securing 206 protocols. Chainlink accounts for about 45% of the $25.612 billion secured by 31 oracles today, followed by projects such as Makerdao, Winklink, Pyth and Band.

Maker has secured $7.66 billion, Winklink $4.42 billion, and Pyth about $584.03 million. The fifth largest oracle is Band, with about 1.55% of the total $25.61 billion, or about $396 million, according to defillama.com metrics. $25 billion is a significant amount of funds secured by decentralized blockchain oracles, but 61.74% less than the fund oracles secured on February 12, 2022.

At that time, more than seven months ago, Chainlink’s total value was greater than the total value secured by 31 oracles today. Secured $17.14 billion. At that time, 17 oracles were monitored by defillama.com, securing a total value of $66.946 billion.

Seven months ago the top five oracles were Chainlink, Makerdao, Band, TWAP, and Pyth. Furthermore, Chainlink currently protects 206 protocols, whereas at the time it only protected 133 protocols. Four of today’s top five oracles also have native tokens, and the value of the token has dropped significantly from its all-time high (ATH).

Chainlink (LINK) is down 85% from its ATH recorded on May 10, 2021, and makerdao (MAKER) is down 84% from its ATH on May 3, 2021. Band Protocol (BAND) has fallen 94.7% since his ATH for the coin was recorded on April 15, 2021, over a year ago. Despite the loss of value, native tokens are worth more than when they started.

For example, LINK has gained 5,053.1% against the US dollar over the past five years since November 29, 2017. % even after 2 years.

Additionally, the total value secured by Oracle is much higher than it was three years ago. Proponents of blockchain oracles believe that today’s legacy oracles provide dubious data at best, which can disrupt many industries as the technology grows.

What do you think of the total value secured by blockchain oracles, which has lost 61.74% since mid-February? Let us know your thoughts on the matter in the comments section below.

Jamie Redman

Jamie Redman is a news lead for Bitcoin.com News and a financial technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols currently emerging.