Chainlink

Pyth Network

Chainlink, a decentralized oracle provider, faces increased competition in the oracle market despite being a long-established dominant force.
Through 2024, decentralized oracle network Pyth has grown significantly, <a data-ct-non-breakable="null" href="https://defillama.com/oracles" rel="null" target="null" text="null" title="null">increasing</a> its total value secured (TVS) by a factor of 46 in nine months, from $98.4 million to $4.7 billion.
Cointelegraph contacted Chainlink for comment but did not receive a response before publication.
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 <img alt="Chainlink dominance challenged by Pyth’s 46x growth in 2024" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191e126-213d-7638-8275-d21038976664">
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 Chart depicting the market share of the top Oracle providers. Source: DefiLlama
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Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/21shares-ether-etf-chainlink-integration" rel="null" target="null" text="null" title="null">Chainlink integration adds transparency to 21Shares Ether ETF</a>
<h2 id="chainlink-leading-but-losing-market-share">Chainlink: Leading but losing market share</h2>
Despite Pyth’s exponential growth, Chainlink retains its position as the top oracle provider as of September, securing $20.1 billion across 404 chains and a 46.46% market share.
However, when considering the oracle market leader’s position earlier in the year, a slight decline can be seen from its 48.64% market share on Jan. 1.
The combination of Pyth’s growth, Chainlink’s decreased market share, and the entry of new oracle providers is seeing Chainlink’s one-uncontested leadership slowly wear away.
In a Q&amp;A with Cointelegraph, Michael Cahill, co-founder and CEO of Douro Labs — core contributor to Pyth network — said that Pyth “leads all oracles, including Chainlink, by total trading volume facilitated as an oracle.”
<figure>
 <img alt="Chainlink dominance challenged by Pyth’s 46x growth in 2024" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191e143-1300-7904-9181-fa03a02ba0fd">
 <figcaption style="text-align: center;">
 Total transaction volume of crypto derivatives. Source: Pyth Network
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<blockquote>
 “Chainlink is leading in the world of lending protocols by total value secured (TVS, or oracle-powered TVL), and Pyth Network is the leader in derivatives volumes. To date, Pyth has secured over $800 billion in total traded volume on-chain.”
</blockquote>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ton-pyth-team-up-for-real-time-de-fi-data" rel="null" target="null" text="null" title="null">TON, Pyth team up for real-time DeFi data</a>
<h2 id="oracle-market-top-contenders">Oracle market top contenders</h2>
Despite its significant growth, Pyth remains in third place with a market share of 10.79%, following WINkLink, which has a market share of 16.47% and a TVS of $7.13 billion.
WINkLink only services two blockchains — Tron and BNB Smart Chain — but retains its position due to its heavy use within the Tron ecosystem, which explains its large TVS.
Following behind Pyth is oracle provider Chronicle, with a market share of 9.05% and a TVS of $3.916 billion, which controlled the entire market until late May 2019.
Chronicle’s decentralized oracle network steadily lost its dominance over time after Chainlink knocked it out of the No. 1 spot in June 2020.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/pyth-network-dominates-perpetual-futures-blockchains" rel="null" target="null" text="null" title="null">Pyth leads perps trading on Solana, Sui, but $600B trading volume will 10x</a>
<h2 id="chainlink-co-founder-advocates-for-oracles">Chainlink co-founder advocates for oracles</h2>
On June 3, the prices of multiple large-cap stocks — including Berkshire Hathaway, McDonald’s and Wells Fargo — plunged by up to 99.9% on the New York Stock Exchange due to a technical glitch.
In the aftermath, Chainlink co-founder and CEO Sergey Nazarov <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/chainlink-co-founder-importance-oracle-networks-nyse-glitch" rel="null" target="null" text="null" title="null">reminded the public of the vulnerabilities</a> of legacy financial systems.
Nazarov told Cointelegraph then that oracle networks can “mitigate” the risks of these systems by “providing accurate, tamper-proof data.”
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Chainlink dominance challenged by Pyth’s 46x growth in 2024

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