Partnerships, cross-chain integrations, and a listing on a major exchange all helped API3’s price rise by 50%.
It’s important for data to be accurate and secure when it’s sent between blockchains and other data sources, and oracle solutions play a big part in this process.
The API3 project is taking a different tack when it comes to developing oracles. API3 is a project that uses application programming interfaces (APIs) to make first-party oracles by using decentralized APIs that can send data directly into blockchain networks.
If you look at data from TradingView, you can see that the price of API3 rose 72% since it hit a low of $3.22 on February 3. This happened because news of Russia stepping up its incursion into Ukraine made waves in the media.
API3’s price has held up well because of a partnership with Amberdata, the launch of Airnode on the Avalanche network, and a new exchange listing at Binance.
Amberdata and the launch of beacon data feeds
In the last few days, API3 has seen a lot of positive news about its new partnership with Amberdata, a digital data asset provider. Amberdata will be releasing beacon data feeds for the crypto community as part of the deal.
In partnership with @API3DAO, a leading first-party #blockchain oracle solution providing a seamless Web3 wrapper that enables Web API providers to offer their data directly on-chain, we are pleased to announce the launch of Amberdata Beacons. https://t.co/TZbR5tCoFc
— Amberdata.io 📊📈 (@Amberdataio) January 19, 2022
Using beacon data feeds, data providers can put their own data feeds on the blockchain “in a transparent, scalable, and cost-effective way.”
Beacons use API3’s first-party oracles instead of traditional data feeds that hide where information comes from. Instead of going through third-party intermediaries, beacons feed data directly on the blockchain without going through third-party intermediaries.
In the past, Oracle providers have sent data to third-party companies. API3’s approach of using decentralized APIs and on-chain data recording is attracting the attention of developers and blockchain protocols because it is a different way to do things.
Airnode and the API3 Alliance are working together.
The launch of Airnode on Avalanche is another reason why API3 looks good.
API3 Airnode is live on @AvalancheAVAX mainnet!#Airnode enables @HeimdallLand to feed data on socially active #cryptocurrencies to the blockchain & improve real-time fund management of the Avalanche Social Index $aHYPE @dao_kassandra
More info below👇https://t.co/J5Z63lQAvF
— API3 (@API3DAO) February 14, 2022
If you want to connect any web API to blockchain apps, Airnode is a Web3 middleware that lets you do that. It lets you connect any web API to blockchain apps and make real-world data available through smart contracts, cutting out middlemen service providers.
There have been a lot of data providers who joined the API3 Alliance in the last few months to go with a new partnership with the NEAR protocol and Aurora that will let more than 180 API providers get their data.
API3 lists on Binance
A third thing that helped API3 over the last month was a new listing on Binance, the largest cryptocurrency exchange by volume.
— Binance (@binance) January 21, 2022
API3’s 24-hour trading volume rose from an average of $17 million before the listing to $145 million on Jan. 21. This shows how important this listing was.
This means that API3 is now available on four of the top six cryptocurrency exchanges in terms of volume. These exchanges are Binance, Coinbase, KuCoin, and Huobi Global.
There were signs of a positive outlook for API3 on Feb. 11, according to data, before the rise in prices.
An algorithm looks at how people are feeling about the markets, how much money is being traded and how the prices have changed recently.
Chart: API3’s VORTECSTM Score rose into the green zone on February 11th. It hit a high of 75 around nine hours before the price began to rise 43.47 percent over the next five days.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.