As blockchain projects focus on interoperability, Oracle tokens turn bullish

2022 seems to be a year of revolution in the cryptocurrency ecosystem, as the focus on interoperability between isolated blockchain networks has become the forefront, and many projects have announced plans to interconnect their platforms with other protocols.

One part of the crypto ecosystem that will play an important role in ensuring smooth communication and interaction between networks is the oracle project like Chainlink (Associate) And frequency band protocol (band).

The top 8 oracle projects by market capitalization.Source: Mesari

The oracle transmits data in a consistent, secure and decentralized manner, which is the key to providing price information for DeFi departments and centralized exchanges.

The number of partners in the top oracle project.Source: Twitter

As show In the picture above, Chainlink is by far the most widely used oracle in the crypto ecosystem. Compared with its closest competitor, Berry Data (BRY), its partner has a lead of nearly eight times.

Chainlink secures new partnership

Scrolling through the Chainlink Twitter feed, you can see why LINK began to announce multiple partnerships with DeFi and NFT projects in 2022, becoming a top oracle provider.

The project also benefits from its focus on the development of the Cross-Chain Interoperability Protocol (CCIP), which helps promote the continuous development of the multi-chain ecosystem.

VORTECS™ data comes from Cointelegraph Markets Pro Before the recent price increase, a bullish outlook for LINK began to be discovered on December 10.

Cointelegraph’s unique VORTECS™ score is an algorithmic comparison of historical and current market conditions. These data points include a combination of market sentiment, trading volume, recent price changes, and Twitter activity.

VORTECS™ score (green) and LINK price. source: Cointelegraph Markets Pro

As shown in the figure above, LINK’s VORTECS™ score began to rise on December 10, and reached a high of 77 in approximately 72 hours before the price rose by 60% in the next three weeks.

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Band agreement starts 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 number, and price feed data.

The project recently announced that it has been launched on the Celo (CELO) mobile-first DeFi platform, which focuses on providing decentralized financial services for more than “6 billion circulating smartphones.”

VORTECS™ data comes from Cointelegraph Marketing PRo Prior to the recent price increase, a bullish outlook for BAND began to be discovered on December 29.

VORTECS™ score (green) and BAND price. source: Cointelegraph Markets Pro

As shown in the graph above, BAND’s VORTECS™ score reached a high of 76 on December 29, approximately 48 hours before prices began to rise by 44% in the next five days.

As the themes of interoperability and cross-chain integration become the main focus of the cryptocurrency ecosystem in 2022, oracles are a sector of the market, and because they can seamlessly transfer data and assets, they may continue to see positive capital inflows . Secure between supported blockchain networks.

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Every investment and trading action involves risk, and you should conduct your own research when making a decision.