Originally published on: October 30, 2024
Pyth Network, a rising Oracle provider, has surpassed Chainlink in 30-day transaction volume, despite having a lower total value secured (TVS). This shift can be credited to Pyth’s innovative pull-based Oracle model, which offers data only upon request, catering to high-frequency applications like trading that require real-time data access.
In a recent interview with Cointelegraph, Niklas Kunkel, the CEO of Chronicle, an Oracle pioneer, discussed the changing landscape of Oracles. Kunkel highlighted the market dominance shifting towards providers like Pyth, whose transaction volume reached an impressive $36 billion in the last 30 days, signifying a demand for high-frequency data optimization.
Kunkel also mentioned Chronicle’s reinvention of the Push Oracle model, which significantly reduces operational costs compared to Chainlink. Despite Chainlink’s stronghold in DeFi, the emergence of pull-based Oracle models like Pyth’s presents a compelling alternative for applications requiring frequent updates without additional operational expenses.
As the industry evolves and integrates with traditional finance, the choice of an Oracle partner becomes crucial for institutions. Kunkel emphasized that Oracles with established security, resilience, transparency, and real-world asset innovation will have a competitive edge in attracting business.
While Chainlink remains a key player in DeFi, the rise of providers like Pyth underscores the potential for disruptive innovations in the Oracle space. With a focus on high-frequency applications and cost-effective solutions, Pyth is reshaping the Oracle landscape and opening new avenues for decentralized finance.
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