Data has slowly been emerging as the most valuable commodity in the world ever since the internet went mainstream. Things do not appear to be changing — quite the opposite. As Web3 continues to develop and grow, data appears to be more important than ever. This is why oracle solutions, that are capable of delivering data from the real world onto the blockchain, and also from one chain to another, are becoming more appreciated than ever.
One of these projects has been attracting a lot of attention as of late, even though its approach to developing and using oracles differs from the others. The project in question is API3 (API3), which recently saw the price of its token skyrocket as the crypto world started paying more attention to it.
API3 sees a major price surge in February
API3 is a project that has a unique approach to oracles. It aims to harness APIs to create first-party oracles through the use of decentralized APIs. Its product is, therefore, capable of broadcasting data to the blockchain directly.
API3 hit a low point at $3.22 on February 3rd, after being pushed down by the bear market that has been troubling the crypto industry since November 2021. However, since then, the situation has changed significantly, and API3 followed this drop with a rise of 72%, reaching a daily high of $5.55 yesterday, February 17th.
Interestingly, this happened while the rest of the market dropped, following the news of Russia escalating its incursion into Ukraine. The news and speculations of further conflicts have had quite a negative impact, even though Russia recently announced its intention to regulate the crypto industry, rather than ban it.
So, why did the API3 price resist the bearishness caused by the recent events? There are three reasons that are the most likely to have had a positive effect despite the current issues.
What caused API3 to grow?
As mentioned, there are three reasons assumed to have been responsible for API3’s growth, with the first of them being the project’s recently announced partnership with Amberdata, a well-known digital data asset provider. The two have teamed up in order to release Amberdata Beacons — beacon data feeds for the crypto sector.
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
Amberdata describes beacon data feeds as capable of creating a scalable, transparent, and cost-effective solution for data providers that will allow them to publish data feeds on-chain. The solution differs from traditional data feeds that hide the sources of their information, while the beacons will use API3’s oracles and keep everything transparent.
The second reason why API3 price surged is the launch of the API3 Airnode on Avalanche’s mainnet. With API3 being the Web3 middleware meant to connect any API to blockchain applications and make real-world data easily accessible through the use of smart contracts, the partnership is highly beneficial for Avalanche. Over the past several months, API3 Alliance grew significantly, welcoming over 150 data providers.
Finally, the third and final reason behind API3’s recent surge is the fact that the token was listed on Binance about a month ago. With Binance being the largest cryptocurrency by volume, getting listed on the exchange guarantees exposure and availability for any coin and token that gets listed there.
Following the listing, API3 trading volume skyrocketed by 752%, going from $17 million to $145 million. Furthermore, the token can now also be found on Huobi Global, KuCoin, and Coinbase.
To learn more about this token visit our How to Buy API3 guide.
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