Oracle Machine Industry Analysis: Seeking the Second Rise Curve

Oracle Machine is a key service mechanism in blockchain systems, used to bring off-chain data into smart contracts, and is one of the cornerstones of the blockchain world. Essentially, the core competitiveness of Oracle Machine projects is mainly reflected in the following four aspects: comprehensiveness and reliability of data acquisition, exclusive data access and value capture, security and decentralization of verification mechanisms, and transmission efficiency and network robustness.

It is expected that by 2030, the overall market size of the Oracle Machine sector should be between $13.8 billion and $23.1 billion. Chainlink is the absolute leader in the Oracle Machine sector, with rich data sources and extensive project collaborations; Pyth has advantages in transmission speed and financial data acquisition; Redstone is currently the only Oracle Machine that has both Push and Pull pricing methods.

In the future, the Oracle Machine will no longer overly rely on providing price feeding services for DeFi projects, and RWA is expected to become a strong second rise curve in the Oracle Machine track. DePIN, AI, and DeSci businesses have the opportunity to combine with the data services of the Oracle Machine in the future, becoming new momentum for the revenue growth of the Oracle Machine, allowing industry growth to expand from 2 to N.

1. The Development of the Oracle Machine

2014 and earlier: Oracle Machine demand began to emerge, decentralized prediction market project Augur launched.

2015-2016: The co-founder of Ethereum proposed the concept of Oracle Machine, and Oraclize launched the first decentralized Oracle Machine service.

2017-2018: The Chainlink project was established, proposing the concept of a decentralized Oracle Machine network.

2019-2021: The DeFi Summer arrives, and Oracle Machines become core external data service providers, with multiple projects launching.

2022-2023: Oracle Machine services expand to multichain and multi-scenario, Chainlink launches CCIP, Pyth Network goes live on mainnet.

2024-2025: The Oracle Machine services will expand into fields such as gaming, NFTs, and insurance. The demand for IoT Oracle Machines will increase due to DePIN applications, and new scenarios will be explored by combining AI with Oracle Machines.

2. Oracle Machine track market size

As of the end of 2024, the total market value of the Oracle Machine project is $10.55 billion, accounting for 11.8% of the total DeFi market value. Based on predictions for the DeFi market, the Oracle Machine market space may reach by 2030:

• Optimistic scenario: $23.1 billion ( accounts for 10% of the DeFi market )
• Neutral situation: 13.8-18.4 billion USD ( accounts for 6-8% of the DeFi market )

3. Major Projects in the Oracle Machine Track

The current landscape of the Oracle Machine industry can be described as "one company dominates." Chainlink is the absolute leader in both token market capitalization and TVS. As of March 2025, Chainlink's TVS is $31 billion, accounting for 53.3% of the total TVS of the entire Oracle Machine sector, with a token market capitalization of $9.6 billion, representing 76.9% of the total market capitalization.

3.1 Chainlink

Chainlink provides price feeds, automation, verifiable random functions, cross-chain operations, and other services. In the revenue composition for 2024, price feed services account for 95%, while the other three types of services account for 5%.

3.2 Pyth Network

Pyth Network has advantages in transmission speed and financial data acquisition, providing price feed services on 65 public blockchains.

3.3 Redstone

Redstone is currently the only data provider that adopts both Push and Pull modes, having completed the integration of over 70 public chains.

4. RWA Opens the Oracle Machine Track's Second Rise Curve

The demand for RWAs for Oracle Machines is more complex, including real-time tracking and on-chain synchronization of asset valuation and physical asset status. McKinsey predicts that by 2030, tokenized real-world assets will reach $20 trillion.

Currently, multiple Oracle Machine projects have begun to provide services for RWA:

• Chainlink supports the pricing of tokenized RWAs backed by Finance.
• Redstone introduces Eurozone government bond ETF data sources to the crypto world.
• Pyth Network provides pricing services for Ondo Finance
• Supra's DORA 2.0 introduces the RWA pricing feed mechanism
• Chronicle Labs launched the RWA Oracle Machine "The Verified Asset Oracle"

For non-financial assets, the Oracle Machine needs to provide more complex services, such as accessing data sources that can reflect the asset's status and influencing factors, and combining mathematical models to convert this information into reliable on-chain prices or risk assessments.

5. Multi-type Data Dedicated Oracle Machine, Industry rise Curve from 2 to N

5.1 Internet of Things Data Oracle Machine

The IoT Oracle Machine allows device users to monitor device data in real time. aitos.io has proposed the Oracle Machine paradigm BoAT3 based on IoT data. Echolink is one of the few Oracle Machines designed for DePIN and has completed the connection of approximately 8 million hardware devices.

5.2 Code Oracle Machine

In the future, there may be dedicated Oracle Machines that upload off-chain code to on-chain for scenarios such as code vulnerability checks for DEX.

5.3 Biomolecular Oracle Machine

If there is a dedicated Oracle Machine for biomacromolecules, with multiple node operators scoring clinical trial results for macromolecules, it can lower the understanding barrier for on-chain investors in the biopharmaceutical industry through a decentralized approach.

Conclusion

The Oracle Machine is gradually evolving from a "universal data layer" that serves standardized financial protocols to a "multimodal infrastructure" that supports vertical scenarios. The demand for off-chain data uploads in various fields such as IoT, AI code, and life sciences is driving the emergence of a batch of specialized oracles.

In the future, as the demand for more modal data on-chain increases and the performance of smart contracts improves, RWA is expected to become the main second rise curve in the Oracle Machine track, while specialized vertical Oracle Machine startup projects will continue to emerge.