As Pyth, a distributed oracle network that is growing quickly, rises in 2024 and calls Chainlink’s long-held dominance into question, the market changes in a big way.
The Total Value Secured (TVS) of Pyth has grown by an amazing 46 times in the last nine months, rising from $98.35 million to $4.67 billion. Oracle’s competitors may have to change how they do business because of this big growth.
Though Pyth’s price went through the roof, Chainlink was the largest oracle provider with a 46.46% market share as of September. It made TVS of $20.113 billion over 404 chains. From the 48.64% share it had at year’s start, a tiny dip The market share of Chainlink is gradually declining, and fresh rivals beginning to emerge suggest that they are no longer the obvious leader.
Chainlink Faces Growing Competition As Pyth Expands Rapidly
Pyth has grown to be a fierce rival in the realm of real-time data oracles as it spans 211 links. Developers and users seeking substitutes for Chainlink are driving changes in the industry. The fast expansion of the network reflects this.
Major contributor to the Pyth network, Emphasizing Pyth’s dedication to additional innovation, he highlighted the difficulties in the oracle business.
Even though it has grown so quickly, Pyth is now third in the oracle market with a 10.79% share. WINkLink is another important player. It has a 16.47% stake and a TVS of $7.13 billion. This is mostly because it is tightly connected to the Tron environment and only works with two blockchains: Tron and the BNB Smart Chain; or BSC.
Following Pyth is Chronicle comes in second with a TVS of $3. Rye billion and a 9.05% market share. Up until late May 2019, Chronicle was the market winner. In June 2020, Chainlink took the top spot, ending Chronicle’s reign. As the industry grows, these psychic companies are competing for a bigger piece of it. This makes them more dangerous.
Sergey Nazarov, co-founder and CEO of Chainlink, still believes that oracles are absolutely crucial in the banking system regardless of frequency of change. About 99.9%, a technological problem led the prices of some large companies, including McDonald’s and Berkshire Hathaway, to collapse on June 3.
Nazarov then discussed how poor antiquated banking systems are. Through “providing accurate, tamper-proof data,” he said, Oracle networks like Chainlink can help “mitigate” these dangers.
And as the oracle business grows, new companies like Pyth enter the picture and test Chainlink’s strength in new ways.
Chainlink is still the best, even though Pyth and its rivals are getting bigger quickly. This means that there is still a lot of competition for power in a spread oracle. Which team stays ahead for longer? The next few months will show how long Chainlink can last and how long Pyth and others can keep closing the gap.
