Oracle tokens turn bullish as blockchain projects focus on interoperability

Share This Post

Oracle projects like LINK, BAND and TRB are seeing bullish momentum as crypto startups intensify their focus on interoperability in 2022.

2022 looks to be a transformative year for the cryptocurrency ecosystem as the focus on interoperability between siloed blockchain networks comes to the forefront and a multitude of projects announce plans to interconnect their platforms with other protocols. 

One sector of the crypto ecosystem that will play a vital role in ensuring smooth communication and interaction between networks is oracles projects like Chainlink (LINK) and Band Protocol (BAND).

Top 8 oracle projects by market capitalization. Source: Messari

Oracles relay data in a consistent, secure and decentralized manner and this is key to providing price feeds for the DeFi sector and centralized exchanges. 

The number of partners for the top oracle projects. Source: Twitter

As shown in the graphic above, Chainlink is by far the most widely adopted oracle in the crypto ecosystem with a near eight-fold lead in partners when compared to its nearest competitor Berry Data (BRY).

Chainlink secures new partnerships

A scroll through the Chainlink Twitter feed shows why LINK has started off 2022 as the top oracle provider by announcing multiple partnerships with DeFi and NFT projects.

The project has also benefited from its focus on developing the Cross-Chain Interoperability Protocol (CCIP) which helps facilitate the ongoing growth of the multi-chain ecosystem.

VORTECSâ„¢ data from Cointelegraph Markets Pro began to detect a bullish outlook for LINK on Dec. 10, prior to the recent price rise.

The VORTECSâ„¢ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECSâ„¢ Score (green) vs. LINK price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECSâ„¢ Score for LINK began to pick up on Dec. 10 and hit a high of 77, around 72 hours before the price increased 60% over the next three weeks.

Related: Blockchain enables enterprise business models in the Metaverse

Band Protocol launches on Celo

Band Protocol is a cross-chain data platform designed to help developers integrate real-world data into their decentralized applications including sports, weather, random numbers and price feed data.

The project recently announced that it had launched on Celo’s (CELO) mobile-first DeFi platform, which focuses on bringing decentralized finance to more than “6 billion smartphones in circulation.” 

VORTECSâ„¢ data from Cointelegraph Markets Pro began to detect a bullish outlook for BAND on Dec. 29, prior to the recent price rise.

VORTECSâ„¢ Score (green) vs. BAND price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECSâ„¢ Score for BAND hit a high of 76 on Dec. 29, around 48 hours before the price began to increase 44% over the next five days.

With the major themes of interoperability and cross-chain integrations shaping up to be a primary focus of the cryptocurrency ecosystem in 2022, oracles are one sector of the market that could continue to see positive inflows thanks to their ability to transfer data and assets seamlessly and securely between supported blockchain networks.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Vaneck’s Matthew Sigel Sets Bitcoin Target at $180,000

Matthew Sigel, head of digital assets research at Vaneck, projects a significant upward trajectory for bitcoin, setting a target price of $180,000 Bitcoin Could Reach $180,000 by Next Year, Says

Ex-TD Ameritrade CEO says Bitcoin is ‘here to stay,’ foresees significant growth

Joe Moglia, former CEO of TD Ameritrade, projected that Bitcoin (BTC) is primed for substantial growth, reinforcing its position as a vital asset in the global financial landscape Moglia made the

Bitcoin Price And The Trump Effect: Here’s What Happened The Last Time Donald Trump Was President

The Bitcoin price has soared to a new all-time high, driven by the bullish sentiment generated by the Donald Trump effect following the just-concluded US Presidential elections The last time Trump

Solana Surges As Momentum Resumes, Is $240 the Next Stop?

Solana (SOL) is gaining momentum once more, with bullish energy pushing it higher as it aims for the next major resistance at $240 Following recent consolidations, SOL has surged onto traders’

Coinbase Acquires Utopia Labs Team to Accelerate Onchain Payments

Coinbase is enhancing its onchain payments capabilities with the acquisition of the Utopia Labs team, which will join Base to advance the onchain payments roadmap within Coinbase Wallet Jesse Pollak,

Crypto Legal Battle: 18 States Accuse SEC Of Unconstitutional Regulatory Actions

In a significant challenge to the US Securities and Exchange Commission (SEC) and its regulatory approach toward the crypto industry, 18 states have filed a lawsuit against the agency and its