Top 3 Crypto Oracles
Oracles connect smart contracts and external sources of data. The top 3 Oracles by market cap are Chainlink, Band Protocol, and UMA.
How can a smart contract get data from the outside world? That's the problem that Oracles solve. They act as middleware between smart contracts and external sources of data.
Software Oracles handle data that originates from online sources e.g. temperature, prices of commodities and goods, and flight delays.
Hardware Oracles get data from the physical world (e.g. from IoT devices) and are popular in the supply chain industry.
Inbound Oracles provide data from the external world to the blockchain.
Outbound Oracles enable smart contracts to send data to the outside world.
Consensus-based Oracles get their data from human consensus and prediction markets e.g. Augur, Gnosis, etc.
The top 3 oracles by market cap are Chainlink (LINK), Band Protocol (BAND), and UMA (UMA). Their TVS (Total Value Secured) are:
Chainlink: $13.6 billion
Band Protocol: $217 million
UMA: $ 68 million
1. Chainlink
Chainlink is a decentralized network of independent oracle node operators.
It provides:
price feeds of financial market data,
verifiable randomness that is needed for on-chain gaming,
proof of reserve for asset-backed cryptos such as stablecoins.
Chainlink is NOT a blockchain. Each Chainlink oracle network comprises multiple independent oracle nodes. These nodes fetch data from multiple independent data providers.
This data is then aggregated into a single data point and delivered "on-chain" for consumption by smart contracts.
Chainlink is used by 319 protocols including AAVE, Compound, Liquity, and Venus.
LINK is the crypto token that is used for paying Chainlink node operators for providing oracle services.
Core metrics of LINK
As of 6 July 2023, the core metrics of LINK are:
Price Metrics
Current Price: $ 6.37
All-time high (May 10, 2021): $52.88
All-time low (Sep 23, 2017): $0.1263
Supply metrics
Circulating supply: 538 million LINK
Total supply: 1 billion
Maximum supply: 1 billion
Marketcap & Volume metrics:
Market Cap: $ 3 billion
Volume (24h): $ 194 million
Volume / market cap: 5.7%
2. Band Protocol
Band Protocol is a cross-chain data oracle for data relating to sports, weather, random numbers, price feed data, etc.
Band Protocol was initially launched on Ethereum but later transitioned to the Cosmos network.
Band Protocol is used by 24 protocols including Loopring, Homora, and dForce.
BAND is the native token used as collateral by validators and as the medium of exchange on BandChain.
Core metrics
As of 6 July 2023, the core metrics of BAND are:
Price Metrics
Current Price: $ 1.25
All-time high (Apr 15, 2021): $ 23.19
All-time low (Nov 25, 2019): $ 0.2042
Supply metrics
Circulating supply: 127 million BAND
Total supply: 136 million BAND
Maximum supply: Unlimited
Marketcap & Volume metrics:
Market Cap: $ 159 million
Volume (24h): $ 7 million
Volume / market cap: 4.4%
3. UMA
UMA is an optimistic oracle that uses a "true unless disputed" pattern. This means that anyone can propose an answer to a data request. The answer is accepted as "true" if it is not disputed during the verification period.
This is different from a "price-feed" oracle where the prices are streamed on-chain and are instantly considered final.
UMA is used by 8 protocols including Across, Outcome Finance, and Polymarket.
Core metrics
As of 6 July 2023, the core metrics of xxx are:
Price Metrics
Current Price: $ 1.62
All-time high (Feb 04, 2021): $ 43.37
All-time low (May 25, 2020): $ 1.16
Supply metrics
Circulating supply: 72 million UMA
Total supply: 115 million UMA
Marketcap & Volume metrics:
Market Cap: $ 117 million
Volume (24h): $ 6 million
Volume / market cap: 5.4%
Notes:
Circulating Supply is the number of coins / tokens in public hands.
Total Supply is the number of coins / tokens created minus the number burned.
Maximum Supply is the maximum amount of this crypto that can ever exist
Figures have been rounded off for convenience
Market cap = Current Price x Circulating Supply
Fully Diluted Market Cap is the market cap if the maximum supply was in circulation
Volume (24h) is the fiat value of this crypto traded over the last 24 hours
Volume / market cap = 24h Volume / Marketcap
Figures have been rounded off for convenience
The data is from CoinMarketCap and may be rounded off.