Chainlink’s supremacy was tested by 46X growth in 2024
Chainlink Decentralized Oracle Services is a long-established dominant force, but faces competition in the Oracle market.
In the year By 2024, Pit, a decentralized word network, has grown significantly, total value secured (TVS) by 46x, from $98.35 million to $4.67 billion in nine months.
The expansion of the decentralized network in the Oracle market extends its length to 211 chains and positions itself as a serious competitor to the legend of real-time data.
Pie chart showing market share of top Oracle vendors. Source: Defillama
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Chainlink: Leading but losing market share.
Despite Paiz's big growth, as of September, Chainlink maintained its position as the top Oracle supplier with 404 chains generating $20.113 billion and a 46.46% market share.
However, considering Oracle's market-leading position at the start of the year, it may have slipped slightly from its 48.64% market share on January 1.
A combination of pie growth, Chainlink's declining market share, and the entry of new voice carriers is slowly eroding Chainlink's unrivaled leadership.
Co-founder and CEO of Douro Labs (a major contributor to the Paiz Network) explained in a Q&A with Cointelegraph's Michael Cahill.
A chart showing the total trading volume of crypto derivatives. Source: Paiz Network Group
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Top competitors of the Oracle market
Despite its high growth, it is in third place with a market share of 10.79%, followed by Winlink, which has a market share of 16.47% and TVS is worth 7.13 billion dollars.
WINkLink is powered by two blockchains – Tron and BNB Smart Chain (BSC) – but it retains its position due to its high leverage in the Tron ecosystem, which holds the largest number of blockchains.
Behind Paiz is the word-of-mouth provider Chronicle, with a market share of 9.05% and TVS at $3.916 billion, which dominated the entire market till the end of May 2019.
The Chronicle's decentralized word-of-mouth network gradually lost its dominance after Chainlink ousted it from the number one spot in June 2020.
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Chainlink co-founder advocates for Oracles
On June 3, the prices of several large stocks, including Berkshire Hathaway, McDonald's and Wells Fargo, fell as much as 99.9 percent on the New York Stock Exchange (NYSE).
After the technical failure, Chainlink founder and CEO Sergey Nazarov reminded the public of the vulnerability of legacy financial systems.
Nazarov told Cointelegraph that Oracle Networks would then be able to “reduce” the risk of these systems by “providing accurate and invulnerable information.”
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