Following the rise of non-fungible tokens (NFTs) tied to NFT markets and tools, Oracle-based tokens are now seeing their valuations rise. Over the past seven days, a series of oracle tokens have seen huge gains of between 7% and up to 45%.
Oracles Token Projects See Seven-Day Profit Jump
Not long ago, tokens associated with NFT’s markets and tools saw prices skyrocket amid the hype of non-fungible tokens. Recently, the Bitcoin.com news service reported on the decline in NFT sales and interest in NFT has also waned as of late.
After the NFT related bomb, a large number of Oracle protocol tokens are making significant gains in the last seven days. Basically, a decentralized Oracle network is a group of independent responders offering autonomous data to a blockchain.
Over the past seven days, the API3 project has increased 46.6% in value.
Oracles dominate the Ethereum network and take advantage of decentralized financial applications (defi) in order to create intermediaries that guarantee trust in decentralized financial tools.
Essentially, the ‘oracle’ protocol sends reliable data from an external source or from the real world. This includes things like prices, weather temperatures, hourly data updates, and voting records. With the help of an oracle, an Ethereum, or any blockchain smart contract you can leverage the data to provide decision-based transactions.
Seven-day Chain Links Market (LINK) statistics for Sunday, April 4, 2021.
Oracle projects and their native tokens have been gaining great value for the last week. The highest valued Oracle token, in terms of market capitalization, is the chain link (LINK), which is trading for $ 30.64 and up 14% over the last week. LINK is probably the most popular oracle, as it is associated with Google Cloud, Dapps Inc., Matic Network, Hedera Hashgraph, IOST, and Betprotocol.
14% is a decent weekly gain, but the API3 project has soared 46.6% this week. API3 claims to provide “secure, quantifiable sources of data and governed in a decentralized way.” Today, the native API3 token is trading for $ 8.73 per unit. API3 is governed by DAO to keep trust minimized and the project developers insist on “API3 and d-API data sources, aggregated data from proprietary oracles, operated by some of the world’s leading API providers.”
Band protocol, DIA, Zoracles, Oraichain
Additionally, Band Protocol (BAND) has done very well this week gaining 21% over the past seven days. The BAND token is trading at $ 16.72 per unit at the time of writing. Oracle’s DIA (Decentralized Information Asset) open source token is up 27% this week and is currently trading at $ 4.86 per unit. The Zoracles confidential oracles project (ZORA) has gained 29% over the course of the week and each token is exchanged for $ 768.91. The Oraichain Project Token (ORAI) is changing hands for $ 42.82 per unit and a 7% increase during the week.
Oracles are interesting cryptocurrency projects, but they still have a long way to go to become more robust. Also, they are faced with the ‘Oracle Problem’ which is a simple dilemma showing that oracles must strive for built-in functionality as many of these projects cannot input or send data to an external element without a direct connection.
What do you think about the significant gains that Oracle tokens have seen in the last week? Let us know what you think on this topic in the comment section below.