Decentralized price oracles play a crucial role in blockchain and decentralized finance. Although there are various service providers, Chainlink remains the king of the hill for now. However, Maker and WINkLink have moved up the rankings, even if things aren’t necessarily what they seem.
Chainlink Dominates Oracles Rankings
Like DeFi protocols bring value to blockchains, decentralized oracles secure that value across various networks. Chainlink has been the most prominent provider of oracle services in recent years and still maintains that top-tier status. More specifically, it secures 178 different protocols today, which is a stellar amount.
Additionally, Chainlink has a Total Value Secured (TVS) of over $16.1 billion. That means over 20% of the Total Value Locked in DeFi today sources price information from Chainlink oracles. It is hard to argue with such a dominant position, and it makes one wonder whether any other provider will come close to these levels in the future.
The other top providers securing over $1 billion in Total Value are Maker and WINKLink. Interestingly, both oracle solutions secure two protocols each, which is very different from how widely Chainlink has been embraced. Maker oracles are primarily used for MakerDAO – which won’t surprise anyone – but KEEP Network also uses them. That latter protocol represents $35.82 million in TVL, making it an interesting “experiment” to see how these oracles hold up.
For WINkLink, on the Tron blockchain, things look a bit different. It is used by JustLend and JustStables, platforms with $1.45 billion and $1.12 billion in assets, respectively. Such amounts represent a slightly bigger risk to entrust to one oracle provider, although it sees WINkLink operates as expected on this front.
Who Will Emerge Next?
There are over a dozen other oracle service providers for developers and projects to choose from. The question is whether oracle providers should try to gain broader recognition by integrating with many protocols or try to find high-value targets. For now, there appears to be a battle on both fronts, which is worth keeping an eye on.
Protocol volume-wise, TWAP is the biggest competitor to Chainlink. It secures the value of 46 different protocols, including Angle, Algofi, Klap, and BiFi. However, the combined TVS of TWAP is $456.22 million, confirming smaller protocols seem to appreciate this oracle service provider. Third on the list is Internal, securing 21 protocols for $123.19 million in value, including Meshswap, Single Finance, and Knit Finance.
Value-wise, no one comes close to Chainlink, Maker, and WINkLink. Band Protocol has the best shot, securing over $730 million across 20 protocols. Pyth isn’t too far behind, with nearly $647 million in TVS across 20 protocols. There is tremendous growth ahead for decentralized oracles, and nothing has been set in stone yet.
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