The crypto economy has lost significant value, losing over $2 trillion from the highs recorded at the end of 2021, while smart contract platform tokens and distributed finance (Defi) protocols A large amount of value was erased. One sector of the defi ecosystem that has recorded significant losses this year is the blockchain oracle space, where so many oracles have secured much less value than seven months ago. There are now more than two dozen oracles, compared to only 17 at the beginning of the year, and the total value secured by oracles is down 61.74% since mid-February.
There are many more blockchain oracles today, but the value secured by all of them has declined since mid-February
Blockchain oracles have experienced significant growth since the inception of these protocols, but in 2022 they are able to secure much less value than they did seven months ago. Blockchain oracles are essentially middleware that connects the blockchain network to external systems via smart contracts, and the medium provides a decentralized, verifiable and shareable data source.
According to defillama.com dataChainlink is the largest blockchain oracle in terms of total value secured by all oracles, with the Chainlink oracle securing 206 protocols. Chainlinkcommands about 45% of the $25.612 billion secured by 31 oracles today, followed by projects such asMakerdao,, Winklink, Pyth, , and the band.
Maker secured $7.66 billion, Winklink secured $4.42 billion, and Pyth secured about $584.03 million.According to the defillama.com index, the fifth largest oracle is Band, with about 1.5% of its $25.61 billion. 55%, or about $396 million, is secured. $25 billion is a significant amount of money secured by the decentralized blockchain oracle, but it is 61.74% less than the money the oracle secured onFebruary 12, 2022.
At that time, more than seven months ago, Chainlink’s total value was greater than the total value secured by the 31 oracles today: on February 12, Chainlink secured $42.44 billion, and Makerdao secured $17.14 billion that day. At that time, 17 oracles were monitored by defillama.com, securing a total value of $66.946 billion.
The top five oracles seven months ago were Chainlink, Makerdao, Band, TWAP, and Pyth. Additionally, Chainlink now protects 206 protocols, while back then it only protected 133 protocols. Four of today’s top five oracles also have native tokens, and token values have dropped significantly from the all-time high (ATH).
Chainlink (LINK) is down 85% from its May 10, 2021 record ATH, Makerdao (MAKER) is down 84% from its May 3, 2021 ATH, Winklink (WIN) is down 96% from April 5, 2021, BAND PROTOCOL (BAND) is down 94.7% from the coin’s ATH recorded on April 15, 2021, more than a year ago. Despite the loss in value, the native token is worth more than it started.
For example, LINK has gained 5,053.1% over the past 5 years against the USD since November 29, 2017; BAND is up 496% since inception; WIN is up 168.4% over the past 2 years; MAKER is also up MAKER is up 449.1% over the same two-year period.
Moreover, the total amount secured by the oracle is even larger than it was three years ago. Proponents of the blockchain oracle believe that as the technology grows, it could disrupt many industries, as today’s legacy oracles provide questionable data at best.
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