Following the boom of non-fungible tokens (NFT) tied to NFT marketplaces and tools, oracle-based tokens are now seeing their valuations rise. During the last seven days, a number of oracle tokens have seen steep gains between 7% to even 45%.
Oracles Token Projects See Seven Day Gains Jump
Not too long ago, tokens associated with NFT markets and tools saw prices soar amid the non-fungible token hype. Just recently, Bitcoin.com’s newsdesk reported on the decline in NFT sales and NFT interest has dropped in recent times as well.
Following the NFT-related pump, a great number of oracle protocol tokens are seeing significant gains over the last seven days. Basically, a decentralized oracle network is a group of independent responders that offer autonomous data to a blockchain.
Oracles are dominant on the Ethereum network and leveraged for decentralized finance (defi) applications in order to create intermediaries that ensure trust in decentralized financial tools.
Essentially, the ‘oracle’ protocol sends trusted data from an external source or from the real world. This includes things like price feeds, climate temperatures, hourly data updates, and voting records as well. With the help from an oracle, an Ethereum or any blockchain smart contract can leverage the data in order to provide decision-based transactions.
Oracle projects and their native tokens have been gathering intense value during the last week. The most valued oracle token, in terms of market capitalization, is chainlink (LINK) which is swapping for $30.64 and up 14% during the last week. LINK is probably the most popular oracle as it is partnered with Google Cloud, Dapps Inc., Matic Network, Hedera Hashgraph, IOST, and Betprotocol.
14% is a decent weekly gain, but the project API3 has spiked a whopping 46.6% this week. API3 claims to provide “decentrally governed and quantifiably secure data feeds.” Today, the native API3 token is swapping for $8.73 per unit. API3 is DAO-governed in order to keep trust-minimized and the project developers insist “API3 data feeds and d-APIs, aggregate data from first-party oracles, operated by some of the world’s premier API providers.”
Band Protocol, DIA, Zoracles, Oraichain
Additionally, the Band Protocol (BAND) has done very well this week gaining 21% during the last seven days. The BAND token is trading for $16.72 per unit at the time of writing. The open-source defi oracle DIA token (Decentralised Information Asset) is up 27% this week and currently trading for $4.86 per unit. The confidential oracles project Zoracles (ZORA) has gained 29% over the course of the week and each token is swapping for $768.91. The Oraichain project’s token (ORAI) is exchanging hands for $42.82 per unit and up 7% for the week.
Oracles are interesting cryptocurrency projects but they still have a long way to go to become more robust. Moreover, they face the ‘Oracle Problem’ which is a simple dilemma that shows oracles need to strive toward a built-in functionality, as many of these projects can’t pull in or push data to an external element without a direct connection.
What do you think about the significant gains oracle tokens have seen during the last week? Let us know what you think about this subject in the comments section below.