Value Held by Blockchain Oracles Slides 61% in 7 Months, Chainlink Dominates by 45% – Defi Bitcoin News

While the crypto economy has shed significant value, losing more than $2 trillion since the highs recorded at the end of 2021, a great deal of value was erased from smart contract platform tokens and decentralized finance (defi) protocols. 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. 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 decreased by 61.74% since mid-February.

Today There’s a Lot More Blockchain Oracles but Less Value Secured by All of Them Since Mid-February

Blockchain oracles have seen significant growth since the inception of these protocols but in 2022, the protocols secure a lot 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 fashion.

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 roughly 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 metrics is Band, with around 1.55% of the total $25.61 billion secured, or around $396 million. 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. On February 12, Chainlink secured $42.44 billion and Makerdao secured $17.14 billion on that day. 17 oracles were monitored by defillama.com at the time and collectively they secured $66.946 billion in value.

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