Oracle tokens turn bullish as blockchain projects focus on interoperability

2022 appears to be a transformative year for the cryptocurrency ecosystem, as the focus on interoperability between siled blockchain networks comes to the fore and a multitude of projects announce plans to interconnect their platforms with other protocols.

One sector of the crypto ecosystem that will play a vital role in ensuring smooth communication and interaction between networks are projects from oracles such as Chainlink (LINK) and Band Protocol (BAND).

Top 8 Oracle projects by market capitalization. Source: Messari

Oracles transmit data in a consistent, secure and decentralized manner and this is key to providing pricing information for the DeFi sector and centralized exchanges.

The number of partners for major Oracle projects. Source: Twitter

What displayed In the graph above, Chainlink is by far the most adopted oracle in the crypto ecosystem with a nearly eight times advantage in partners compared to its closest competitor Berry Data (BRY).

Chainlink secures new partnerships

A scroll through Chainlink’s Twitter feed shows why LINK started in 2022 as Oracle’s top vendor by announcing multiple partnerships with DeFi and NFT projects.

The project has also benefited from its focus on the development of the Inter-Chain Interoperability Protocol (CCIP), which helps facilitate the continued growth of the multi-chain ecosystem.

VORTECS ™ data from Cointelegraph Markets Pro began to detect a bullish outlook for LINK on December 10, ahead of the recent price spike.

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, trading volume, recent price movements, and trading activity. Twitter

VORTECS ™ score (green) vs. LINK price. Fountain: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS ™ score for LINK began to rebound on December 10 and peaked at 77, around 72 hours before the price increased 60% over the next three weeks.

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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 data.

The project recently announced that it had been launched on Celo’s DeFi platform for mobile devices first (CELO), which focuses on bringing decentralized financing 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 surge.

VORTECS ™ score (green) vs. BAND price. Fountain: Cointelegraph Markets Pro

As seen in the graph above, the VORTECS ™ score for BAND peaked at 76 on December 29, about 48 hours before the price began to increase 44% over the next five days.

As the main issues of interoperability and cross-chain integrations are emerging as a main focus of the cryptocurrency ecosystem in 2022, oracles are a market sector that could continue to record positive entries thanks to its ability to transfer data and assets smoothly and easily. securely between supported blockchain networks.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and business move involves risk, you should do your own research when making a decision.