Wow, it’s almost that bad! Oracles have been largely forgotten in this bull cycle. However, a lot of alts, especially layer 1 blockchains have done exceptionally well during 2020 and early 2021. Altcoin valuations have however dropped quite heavily, which will leave a dent in your portfolio relative to your entry. Early access is imperative when dealing with alts. For example, if you were early on Solana or LUNA then you could still be up 100X or more, despite the massive drawdown in the altcoin market.
ChainLink was in many ways an early indicator for this most recent bull market. The oracle was on fire in late 2019 and then proceeded to not do too much thereafter. It’s as if LINK used up most of its rocket fuel and subsequently had very little left to offer the bullish cycle that lay ahead.
Are Oracles Ready For A Comeback?
Interestingly enough, prior to the recent price collapse, ChainLink was actually starting to look rather good. I was actually preparing to enter a LINKBULL position, which is a leveraged token that is set at 3X the daily move of the applicable coin or token. Perhaps not all oracles are going to see a rise but it seems as if the oracle sector as a whole is overdue on some decent price appreciation. NFTs, DeFi and the recent Metaverse hype have all somehow managed to steal the attention of investors and speculators.
Just because the price is quiet, doesn’t mean that nothing is happening. Bearish or quiet seasons are the best time for development and building. You can be sure that during this time there has been a lot of development that went unnoticed due to the NFT and Metaverse hype.
Band Is Another Forgotten Hero
Oracles have really underperformed in my opinion but as I mentioned, the early moves on ChainLink and others could have been evidence of the oracle sector frontrunning the market. Band actually performed quite well during 2020 but then went on to fade out in 2021. The oracle is currently trading 82% below its recent high, which to be fair, is in line with much of the altcoin market. I think that what makes it so disappointing is that the majority of the market pumped during the course of 2021, whereas Band and other oracles didn’t. The first five months of 2021 were actually quite bullish and yet Band and others were unresponsive.
Band actually received a lot of attention in early 2020 when it broke out from a few cents to $14, which is another confirmation that oracles had early access to the bull market.
I am simply expressing my thoughts in this article but definitely intend to go and do some research into what has actually been happening in the world of oracles and especially, ChainLink. I have a sneaky suspicion that oracles could be in for a surprise move in the not too distant future. I will have to let you know if I come across any interesting developments.
Thanks for taking the time to ponder this possibility with me!