Originally published on: October 30, 2024
Pyth Network, an innovative Oracle provider, has recently outperformed Chainlink in 30-day transaction volume, despite having a lower total value secured (TVS). This surprising shift in the Oracle landscape can be attributed to Pyth’s unique pull-based model, which offers data only upon request, in contrast to Chainlink’s push-based model. The pull-based approach by Pyth is particularly optimized for high-frequency applications like trading, where real-time data access is crucial.
Niklas Kunkel, the founder and CEO of Chronicle, a former Oracle leader, shared his thoughts on these changes in a recent interview with Cointelegraph. Kunkel highlighted the evolving dynamics in Oracle dominance, stating, “We’re witnessing an intriguing shift in Oracle dominance currently.”
Recent data from DefiLlama showcases a significant increase in transactions for Pyth, indicating a growing preference for high-frequency data optimization. Pyth’s transaction volume in the past 30 days reached an impressive $36 billion, emphasizing the demand for Oracles that can cater to high-frequency applications effectively.
Kunkel also discussed Chronicle’s innovative push Oracle model, which reduces operational costs by 80% compared to Chainlink. Through this model, Oracle providers can offer continuous updates without incurring high operational expenses.
While Chainlink continues to maintain its position as a prominent player in decentralized finance (DeFi), Pyth’s surge reflects a shifting focus towards high-frequency data requirements. Kunkel emphasized the need for institutions to carefully choose Oracle partners with proven security, resilience, transparency, and real-world asset innovation to navigate the evolving financial landscape successfully.
As the DeFi industry continues to expand and integrate with traditional finance, selecting a reliable Oracle partner becomes crucial for risk mitigation and management decisions. Oracles with a strong track record in these key areas are likely to emerge as favored choices in the increasingly competitive market.
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