The oracle market is a very interesting space because users and developers of DeFi protocols are willing to pay for reliable and tamper-proof data. However, the solutions required to improve the accuracy and decentralization of the data provided by oracles are complex, making it very difficult to compete in this space. Against this background, Tellor (TRB), a transparent and permissionless oracle protocol, has recently performed well and become the focus of the market.
Background and Overview of Tellor (TRB)
Tellor (TRB) is a decentralized oracle protocol. Its main service content is to provide users with access to off-chain data outside the Ethereum network (such as API or transaction data of the Polygon chain), aiming to solve the current problems of the Ethereum network. The problem of information isolation. It creates an independent data system within the network, and users can request data from the system through contracts. After receiving the request, Tellor will query and correlate relevant data within the system based on the user's different needs.
How Tellor (TRB) works
Tellor uses a hybrid consensus mechanism that combines elements of Proof of Work (PoW) and Proof of Stake (PoS). As stated in the Tellor This shift aligns with broader industry trends prioritizing sustainability and decentralized participation within blockchain networks.
Participatory model in the Tellor system: The Tellor system operates in a decentralized and participatory model, where anyone can deposit shares and contribute data. Within a specified time frame, individuals are given the opportunity to challenge any data provided by paying a dispute fee. Resolution of disputes is determined through a voting process involving Tellor stakeholders. If a data reporter loses a dispute, their shares will be transferred to the party who filed the dispute.
Tellor (TRB) Token Economics
TRB is Tellor’s native token, with a total supply of 2,626,400 TRB and a circulating supply of 2,569,500 TRB. The latest circulating market capitalization is US$317 million. It’s worth noting that Tellor does not have a maximum supply, meaning that new coins may continue to be mined or added to circulation over time. The TRB token is a core component of Tellor network security, and the higher the token price, the more expensive it is to attack the network.
Reasons for the surge in market capitalization: The number of crypto whale transactions and active addresses related to TRB has increased rapidly, according to data from blockchain analytics platform Santiment. Specifically, on May 6, daily active addresses reached 212, while there were 16 large transactions involving transaction amounts exceeding $100,000. On May 1, there were only 131 active addresses and no significant crypto whale trading activity. This activity indicates that investor interest in TRB and its potential profitability is growing rapidly.
The future of Tellor (TRB)
Nonetheless, cryptocurrency analysts remain optimistic about TRB’s price action. Analyst Javon Marks highlighted Tellor's strong presence in the market and expects it to continue its upward trajectory. “TRB (Tellor) is currently showing strong momentum and is expected to see a significant move higher, possibly over 315%, back above $261 after remaining in bullish mode,” Marks said.
Investment advice and risk warning: After interpreting the logic of Tellor Tributes (TRB), you can pay attention to the following points in the current market:
The degree of concentration of token chip distribution and in whose hands it is concentrated.
Have there been any abnormal activities on the chain recently?
Whether the token contract trading volume and open interest have increased significantly and maintained for a period of time.
What is the specific situation of the long-short ratio of large account holdings and the long-short ratio of the number of position holders?
If the position continues to grow and then falls back along with the price, it may form a short-term price top.
In summary: TRB plays an important role in the market as a decentralized oracle protocol. However, because there are too many traces of strong market trading, investors should operate with caution and not easily carry out short or long actions. It is not recommended to engage in contract trading. It is still okay to let the banker take you to eat some soup in spot trading! In market fluctuations, only those who are brave and careful dare to play.