It looks like 2022 will be a transformative year for the cryptocurrency ecosystem as the focus on interoperability between isolated blockchain networks comes to the fore and several projects announce plans to link their platforms with other protocols.
One of the sectors of the crypto ecosystem that will play a vital role in ensuring smooth communication and interaction between networks are Oracle projects such as Chainlink (LINK) and Band Protocol (BAND).
Oracles relay data in a consistent, secure, and decentralized manner which is key to providing price feeds to the DeFi sector and centralized exchanges.
as shown In the above graphic, Chainlink is by far the most widely adopted medium in the cryptocurrency ecosystem with nearly eight times as many partners as its closest competitor Berry Data (BRY).
Chainlink secures new partnerships
Scrolling through the Chainlink Twitter feed explains why LINK was launched in 2022 as the best Oracle provider by announcing multiple partnerships with DeFi and NFT projects.
The project also benefited from its focus on developing a Cross-Chain Interoperability Protocol (CCIP) that helps facilitate the continued growth of the multi-threaded ecosystem.
VORTECS™ data from Cointelegraph Markets Pro began detecting a bullish outlook for LINK on December 10, ahead of the recent price rally.
The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions drawn from a range of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As shown in the chart above, LINK’s VORTECS™ result started rising on December 10 and reached a high of 77, roughly 72 hours before the 60% price increase over the following three weeks.
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Band Protocol launches in Celo
Band Protocol is a cross-chain data platform designed to help developers integrate real-world data into their decentralized applications including sports, weather, random numbers, and price feed data.
The project recently announced its launch on Celo’s first mobile DeFi platform (CELO), which is focused on providing decentralized financing for more than “6 billion smartphones in circulation.”
VORTECS™ data from Cointelegraph Markets Pro began detecting a bullish outlook for BAND on December 29, ahead of the recent price rally.
As shown in the chart above, the BAND’s VORTECS™ result reached a high of 76 on December 29, about 48 hours before the price started to rise by 44% over the next five days.
With key themes of interoperability and cross-chain integration forming the primary focus of the cryptocurrency ecosystem in 2022, oracles is one market segment that could continue to see positive flows thanks to its ability to seamlessly and securely move data and assets between supported blockchain networks.
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