Originally published on: September 11, 2024
In the ever-evolving world of decentralized oracle providers, Chainlink, a long-established leader, is facing stiff competition from the fast-growing Pyth network. Despite Chainlink’s stronghold in the market, Pyth has seen staggering growth in 2024, with its total value secured (TVS) skyrocketing by a massive 46x in just nine months, reaching $4.7 billion from $98.4 million.
Cointelegraph reached out to Chainlink for comment on the matter, but unfortunately did not receive a response in time for publication. Despite this, it’s clear that Pyth’s exponential growth poses a real threat to Chainlink’s dominance in the oracle market.
As of September, Chainlink remains the top oracle provider, securing $20.1 billion across 404 chains and holding a market share of 46.46%. However, there has been a slight decline from its previous market share of 48.64% at the beginning of the year.
With the rise of Pyth, along with the emergence of new players in the oracle market, Chainlink’s position as the undisputed leader is slowly beginning to erode. Michael Cahill, co-founder and CEO of Douro Labs, a core contributor to the Pyth network, emphasized that Pyth leads in total trading volume facilitated as an oracle, surpassing even Chainlink in this aspect.
Despite Pyth’s significant growth, it currently holds the third position in the market with a market share of 10.79%, trailing behind WINkLink and Chronicle. WINkLink, operating on Tron and BNB Smart Chain, has a substantial market share due to its heavy usage within the Tron ecosystem. Meanwhile, Chronicle, which once dominated the market, has seen its position slip after being overtaken by Chainlink in 2020.
The recent market turmoil, such as the plunge of major stocks on the New York Stock Exchange, has highlighted the importance of reliable data sources for financial systems. Oracle networks like Chainlink and Pyth play a crucial role in providing accurate and tamper-proof data to mitigate the risks associated with traditional systems.
As the oracle market continues to evolve, it will be interesting to see how Chainlink adapts to the challenges posed by Pyth’s rapid growth and the changing landscape of decentralized finance.
