Chainlink Loses Market Share Amid Pyth's Growth

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by Giorgi Kostiuk

2 years ago

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  1. Chainlink: Leading but Losing Market Share
  2. Oracle Market Top Contenders
  3. Chainlink Co-founder Advocates for Oracles


    4. Chainlink, a long-established dominant force in the decentralized oracle market, faces increasing competition, especially from the Pyth network, which has increased its Total Value Secured (TVS) by 46 times in nine months.

    Chainlink: Leading but Losing Market Share

    Despite Pyth’s exponential growth, as of September, Chainlink retains its position as the top oracle provider, securing $20.113 billion across 404 chains and a 46.46% market share. However, when considering the market leader’s position earlier in the year, a slight decline can be seen from its 48.64% market share on January 1. The combination of Pyth’s growth, Chainlink’s decreased market share, and the entry of new oracle providers is slowly wearing away Chainlink’s once uncontested leadership.

    The combination of Pyth’s growth, Chainlink’s decreased market share, and the entry of new oracle providers is slowly wearing away Chainlink’s once uncontested leadership.Michael Cahill, Co-founder and CEO of Douro Labs

    Oracle Market Top Contenders

    Despite its significant growth, Pyth remains in third place with a market share of 10.79%, following WINkLink, which has a market share of 16.47% and a TVS of $7.13 billion. WINkLink only services two blockchains — Tron and the BNB Smart Chain (BSC) — but retains its position due to its heavy use within the Tron ecosystem, which explains its large TVS. Following behind Pyth is the oracle provider Chronicle, with a market share of 9.05% and a TVS of $3.916 billion, which controlled the entire market until late May 2019. Chronicle’s decentralized oracle network steadily lost its dominance over time after Chainlink knocked it out of the number-one spot in June 2020.

    Chainlink Co-founder Advocates for Oracles

    On June 3, prices of multiple large-cap stocks, including Berkshire Hathaway, McDonald’s, and Wells Fargo, plunged by up to 99.9% on the New York Stock Exchange (NYSE). After the technical glitch’s aftermath, Chainlink co-founder and CEO Sergey Nazarov reminded the public of the vulnerabilities of legacy financial systems. Nazarov told Cointelegraph then that Oracle networks can “mitigate” the risks of these systems by “providing accurate, tamper-proof data.”

    Oracle networks can 'mitigate' the risks of legacy financial systems by 'providing accurate, tamper-proof data.'Sergey Nazarov

    Chainlink continues to lead the oracle market but is gradually losing its share amid the growth of competitors such as Pyth and WINkLink. In the dynamic oracle market, many players strive to carve out their niches, offering innovative and reliable solutions.

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