Pyth Network, an Oracle provider, outpaced Chainlink in 30-day transaction volume despite holding a lower total value secured (TVS).
This shift may be attributed to Pyth’s pull-based Oracle model, which only provides data upon request rather than updating it regularly, unlike Chainlink’s push-based model. Pyth’s approach is optimized for high-frequency applications, such as trading, where real-time data access is critical.
Niklas Kunkel, founder and CEO of former Oracle leader Chronicle, discussed the changes in the Oracle landscape during an interview with Cointelegraph. “We’re seeing an interesting situation play out in Oracle dominance currently,” Kunkel said. He added:
“Chainlink appears to be losing market share to three key players: Chronicle, Pyth, and Redstone. Pyth and Redstone focus on Pull Oracles, which are built for speed and are ideal for derivatives and options protocols.”
Pie chart and graph depicting the market dominance of all Oracle providers’ total value secured (TVS). Source: DefiLlama
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Pyth hits $36 billion 30-day volume
According to data from DefiLlama, the market share of Oracle providers in TVS shows an increase in transactions for Pyth, indicating a shift toward high-frequency data optimization. Pyth’s transaction volume reached $36 billion in the past 30 days, underscoring demand for Oracles that can support high-frequency applications.
“DeFi saw a period of growth and innovation during the recent bear market, but Oracles didn’t evolve fast enough,” Kunkel said. He added:
“This lack of innovation led them to gain a reputation as the Achilles heel of DeFi – often being the root cause of DeFi hacks.”
Through the pull-based model, Oracle providers like Pyth can support applications that require continuous updates without incurring higher operational costs associated with larger providers.
Kunkel also said that Chronicle has introduced “a reinvention of the Push Oracle,” which lowers operating costs by 80% in gas units of computational effort instead of Chainlink. “The pull-based Oracle model allows providers like Pyth to support applications that require frequent updates without incurring higher operational costs,” Kunkel added.
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Chainlink dominance fueled by broad adoption
Despite Pyth’s surge, Chainlink remains a major player in decentralized finance (DeFi), securing high-value assets and benefiting from its reputation for reliable validator networks.
Still, as Kunkel said, “the opportunity to fill this gap” in Oracle infrastructure is becoming clearer, indicating certain areas where the traditional push model may fall short. He added:
“While Chainlink currently leads in total value secured (TVS), it lags in innovations such as a scalable validator set, the ability to maintain near-constant gas fees, and data transparency.
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Chronicle market reentry and future expectations
Chronicle was one of the first Oracles on the Ethereum blockchain but was previously only available within MakerDAO. Since Chronicle’s relaunch outside of MakerDAO in late 2023, the provider has integrated with 10 new chains and garnered adoption by industry players like Morpho, Euler, Gnosis Pay, Coinbase and Circle.
Kunkel said that as the industry continues to grow and intertwine with traditional finance, “choosing an Oracle partner will be a risk mitigation and management decision” that institutions must make.
Oracles with proven track records in security, resilience, transparency and real-world asset innovation “will win business.”
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