2022 appears to be a transformative year for the cryptocurrency ecosystem as the focus on interoperability between isolated blockchain networks comes to the fore and a multitude of projects announce plans to interconnect their platforms with other protocols.
One sector of the ecosystem that will play a key role in ensuring smooth communication and interaction between networks are oracle projects such as Chainlink (LINK) and Band Protocol (BAND).
Oracles transmit data in a consistent, secure, and decentralized manner, which is essential for providing price information to the DeFi sector and centralized exchanges.
How I know shows In the chart above, Chainlink is by far the most adopted oracle in the cryptocurrency ecosystem, with a nearly eight-fold lead in partners compared to its closest competitor, Berry Data (BRY).
Chainlink secures new partnerships
A look at Chainlink’s Twitter account shows why LINK has started the year 2022 as the leading provider of oracles by announcing multiple partnerships with DeFi and NFT projects.
The project has also benefited from its focus on developing a Cross-Chain Interoperability Protocol (CCIP), which helps facilitate the continued growth of the multi-chain ecosystem.
VORTECS ™ data from Cointelegraph Markets Pro began to spot a bullish outlook for LINK on December 10, ahead of the recent price surge.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trade volume, recent price movements and activity in Twitter
As seen in the chart above, LINK’s VORTECS ™ Score began to rally on December 10 and peaked at 77, about 72 hours before the price increased 60% in the next three weeks.
Band Protocol launches in Zeal
Band Protocol is a cross-chain data platform designed to help developers integrate real-world data into their decentralized applications, including sports, weather, random numbers, and price feed data.
The project recently announced that it had been launched on Celo’s DeFi platform (CELO), which is focused on bringing decentralized finance to more than “6 billion smartphones in circulation.”
VORTECS ™ data from Cointelegraph Markets Pro began to spot a bullish outlook for BAND on December 29, ahead of the recent price rally.
As seen in the chart above, BAND’s VORTECS ™ Score peaked at 76 on December 29, about 48 hours before the price began to increase 44% over the next five days.
With the main themes of interoperability and cross-chain integrations emerging as a major focus of the cryptocurrency ecosystem in 2022, oracles is a market sector that could continue to see positive inputs thanks to its ability to seamlessly transfer data and assets and securely between compatible blockchain networks.
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