To the observant cryptocurrency enthusiast, the sight of multiple large-cap tokens more than tripling their value since November 2020 is a healthy sign that a bull market cycle is underway.
Aside from a breakout in the price of Bitcoin (BTC), Ether (ETH) and altcoins, every bull market in the crypto sector is defined by one or two key themes that emerge as the driving force of market enthusiasm.
In 2016-2017 there were ICOs, the growing popularity of collectibles like CryptoKitties and the widely held belief that blockchain was a solution to every problem in the world.
In 2021 it’s clear that DeFi is one of the primary drivers of the current bull trend in Ether price and altcoins that embraced the sector. While it may not be in the forefront of every analyst’s mind, the development of oracles is another component that is quietly building the essential infrastructure of the crypto market and many of the projects focused on oracle integration have seen their token prices surge in the past 12 months.
Oracles track, record and securely transmit various forms of data, such as price and trading volume, to different blockchain networks and entities that are interested in the data provided.
Companies like the stablecoin provider Paxos, decentralized exchanges like Uniswap and lending platforms like Maker (MKR) utilize oracles such as Chainlink (LINK) to provide accurate cryptocurrency-related information.
The need for