2022 will be a year of transformation in the cryptocurrency ecosystem as the focus on interoperability between different blockchain networks comes to the fore, and several projects announce plans to integrate their platforms with other protocols.
One of the segments of the crypto ecosystem that will play an important role in ensuring seamless communication and interoperability between networks is Oracle projects such as Chainlink (LINK) and Band Protocol (BAND).
Top 8 Oracle projects by market value. Source: messari
Oracles transmits data in a consistent, secure and decentralized manner, which is the key to providing pricing channels for the DeFi sector and centralized exchanges.
Number of partners for Oracle’s top projects. Source: Twitter
As shown in the image above, Chainlink is the most widely used medium in the crypto ecosystem with an almost eight times partner advantage over its nearest competitor Berry Data (BRY).
Chainlink secures new partnerships
Browsing Chainlink’s Twitter feed reveals why LINK was launched in 2022 as a leading Oracle provider, and announced several partnerships with Defi and NFT projects.
The project also benefited from its focus on the development of the Interconnection Protocol (CCIP), which helps to facilitate the continued growth of the multi-chain ecosystem.
VORTECS ™ data from Cointelegraph Markets Pro began to set the optimistic outlook for LINK on December 10, ahead of the recent rally.
Exclusive to Cointelegraph, VORTECS is an algorithmic comparison of historical and current market conditions based on a number of data points, including market sentiment, trading volume, recent price movements and Twitter activity.
Pricing VORTECS ™ (in green) vs. price references. Source: Cointelegraph Markets Pro
As you can see from the chart above, LINK’s VORTECS vurdering rating began to rise on December 10, reaching a peak of 77, about 72 hours before the price rose 60% over the next three weeks.
Related: Blockchain enables business models in Metaverse.
Band Protocol is launched in Celo
Band Protocol is a multi-threaded data platform designed to help developers integrate real data into their decentralized applications, including sports, weather, random numbers and price data.
The project recently announced the launch of the Celos DeFi platform (CELO), the first mobile platform aimed at providing decentralized financing for more than “6 billion smartphones in circulation”.
VORTECS fra data from Cointelegraph Markets Pro began to show an optimistic forecast for BAND on December 29, before the recent price increase.
Pricing VORTECS ™ (in green) versus BAND price. Source: Cointelegraph Markets Pro
As you can see from the chart above, BANDs VORTECS reached a peak of 76 on December 29, about 48 hours before the price will start to rise 44% over the next five days.
With key interoperability and interconnection themes becoming the main focus of the cryptocurrency ecosystem in 2022, oracles is one of the market segments that can continue to receive a positive influx due to its ability to seamlessly and securely move data and assets between supported blockchain networks.