What is the reason why the API3 price rebounded by 72%?

In the Web 3 world, data is the most valuable product, and Oracle solutions play an important role in facilitating accurate and secure data transfer between blockchains and data sources.

A project that takes a different approach to Oracle development is API3 (API3), which leverages Application Programming Interfaces (APIs) to create first-party Oracle that can push data directly to blockchain networks by using decentralized APIs.

Data from TradingView shows that API3 price is up 72% from the low of $3.22 on Feb. 3 and hit an intraday high of $5.55 on Feb. 17, as the broader crypto market post the escalation of the news corrected on the threat of war between Russia and Ukraine.

API3/USDT 4 hour chart | Source: TradingView

Three reasons for the resilience of API3 prices are the partnership with Amberdata for the release of beacon feeds, the launch of Airnode on the Avalanche network and the listing on the Binance exchange.

Amberdata and the launch of beacon feeds

Recent bullish momentum for API3 began when the project announced a new partnership with digital dataset provider Amberdata to release beacon feeds to the crypto community.

According to Amberdata, beacon feeds “create a transparent, scalable, and cost-effective solution for data providers to publish on-chain feeds directly.”

Unlike a traditional feed, which hides where the information is coming from, beacons use API3’s first-party Oracle to deliver data directly on-chain, rather than routing it to a third-party provider.

Oracle providers typically handle data transfers in third-party ways. However, API3’s vehicles, which use decentralized APIs and on-chain data logging, offer an alternative design that is drawing the attention of the blockchain protocol and developers.

Airnode integration and API3 Alliance partnership

The second development that speaks in favor of API3 is the introduction of Airnode on the Avalanche network.

“API3 Airnode is on the Avalanche mainnet! Airnode enables Heimdall to inject crypto-social activity data onto the blockchain and enhances the real-time fund management of the Avalanche Social Index.”

Airnode is a Web 3 middleware designed to connect any web API directly to blockchain applications to expose real-world data via smart contracts, a process that eliminates the need for intermediary service providers and helps Turn data providers into their own blockchain oracles.

Over the past few months, more than 150 data providers have joined the API3 Alliance for a brand new partnership with the NEAR and Aurora protocol, providing access to over 180 API providers.

API3 listed on Binance

The third factor that has given API3 an extra boost over the past month is its listing on Binance, the largest cryptocurrency exchange by trading volume.

A testament to the importance of this listing is the 24-hour trading volume for API3, which has increased from an average of $17 million before the listing to $145 million on May 21, a 752% increase.

API3 is currently available on four of the top six crypto exchanges by trading volume, including Binance, Coinbase, KuCoin, and Huobi Global.

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