Why did the price of PYTH fall?

Pyth Network (PYTH) dropped 1.64% in the last 24 hours to $0.177, underperforming the overall crypto market, which rose 1.53%. Here’s why:

1. Investors are taking profits after a strong 35% rally over the past month.
2. Altcoins are showing weakness as Bitcoin dominance stays high at 56.66%.
3. Market indicators show low volatility and neutral momentum.

Deep Dive

1. Profit-Taking After Rally (Bearish Pressure)

PYTH has surged 35.6% in the last 30 days, including a 10.7% gain in the past week before this recent pullback. Trading volume in the last 24 hours fell by 43.9% to $99.4 million, indicating less buying interest.

This suggests traders are cashing out some gains after PYTH hit its highest price since early August 2025. The price is currently between two important technical levels: above the 30-day simple moving average (SMA) at $0.149 but below the 7-day exponential moving average (EMA) at $0.171.

Watch to see if $0.178, the current pivot point, holds as support. If it breaks below this, the next support level to watch is $0.163, which corresponds to the 61.8% Fibonacci retracement level—a common technical indicator used to predict price pullbacks.

2. Altcoin Market Sentiment (Mixed Effects)

While the overall crypto market rose 1.53%, altcoins like PYTH showed mixed results. Bitcoin’s dominance—the percentage of the total crypto market cap that Bitcoin represents—dipped slightly to 56.66% but remains near its highest level this year. This suggests investors are still cautious about moving money into smaller cryptocurrencies.

As a mid-sized project with a market cap of about $1.02 billion, PYTH is sensitive to these shifts in investor risk appetite. The Altcoin Season Index, which measures how well altcoins are performing compared to Bitcoin, stands at 70 out of 100. This indicates improving conditions but not yet a full “alt season” where altcoins typically outperform Bitcoin.

3. Technical Indicators Show Neutral Signals

Key technical indicators suggest the market is balanced:

• The Relative Strength Index (RSI) is at 58, indicating neither overbought nor oversold conditions.
• The MACD histogram is slightly positive (+0.00016), showing minimal momentum.
• The price is trading between the middle ($0.178) and lower ($0.138) bands of the Bollinger Bands, which measure volatility.

This means the recent dip looks more like a pause or consolidation rather than a clear bearish reversal. However, the price failed to stay above the 200-day EMA at $0.168 during the last 24 hours, which calls for some short-term caution.

Conclusion

The recent pullback in PYTH is a healthy sign of profit-taking after a strong monthly rally, combined with cautious sentiment in the altcoin market. Technical indicators are neutral, and the project’s fundamentals remain stable, supported by recent partnerships with U.S. government data providers. Overall, PYTH seems to be in a consolidation phase rather than entering a sustained downtrend.

What to watch: Can PYTH stay above the 30-day SMA at $0.149 during the typically volatile month of September? Also, keep an eye on Bitcoin’s price—if it breaks above $113,000, it could spark renewed interest in altcoins like PYTH.

What could affect the price of PYTH?

Pyth Network’s (PYTH) price depends largely on how much institutions adopt it, upcoming token releases, and decentralized finance’s (DeFi) demand for real-time data.

1. Institutional Growth – Aiming to enter the $50 billion market data industry (Phase 2 roadmap).
2. Token Unlocks – $333 million worth of tokens unlock in May 2025, with more releases through 2027.
3. Regulatory Support – Partnership with the U.S. Commerce Department to provide economic data on the blockchain.

In-Depth Look

1. Institutional Data Expansion (Positive for PYTH)

What’s happening:
Pyth’s Phase 2 plan focuses on selling high-quality data feeds to institutions, like risk models and settlement systems, beyond just DeFi users. If Pyth captures just 1% of the $50 billion market data industry, it could bring in over $500 million annually. The U.S. Commerce Department’s collaboration to publish GDP data on the blockchain (announced August 2025) shows strong government backing and validates Pyth’s technology.

Why it matters:
More institutional use means higher demand for PYTH tokens, which could be used to pay for data subscriptions or participate in governance decisions. Revenue-sharing methods, like buying back tokens, could reduce supply and support prices. However, if adoption is slower than expected, these benefits might not materialize.

2. Token Unlocks Could Pressure Prices (Potential Downside)

What’s happening:
A large portion of PYTH tokens—58% of the circulating supply, worth $333 million—will become available in May 2025, with additional unlocks in 2026 and 2027. Historically, big token unlocks have led to price drops; for example, PYTH fell 21% after the May 2025 unlock.

Why it matters:
This influx of tokens could increase selling pressure, pushing prices down unless demand grows enough to absorb the supply. Keep an eye on the circulating supply-to-volume ratio—if trading volume doesn’t keep up with supply increases, liquidity could dry up. Currently, this ratio is low at 0.0979, indicating limited trading activity relative to supply.

3. Competition with Chainlink (Mixed Outlook)

What’s happening:
Pyth uses a pull-oracle model, which is more cost-efficient for frequent data updates, compared to Chainlink’s push model. Pyth leads in DeFi derivatives with a 60% market share but handles less total value ($20 billion) than Chainlink ($43 billion).

Why it matters:
Landing important partnerships, like with RHEA Finance, could increase Pyth’s usefulness. Still, Chainlink’s established presence and ability to operate across multiple blockchains make it a tough competitor. Many projects use both oracles, which might limit how much Pyth’s price can grow.

Conclusion

PYTH’s future depends on balancing strong growth potential in institutional data markets with risks from large token unlocks. The partnership with the U.S. Commerce Department and successful Phase 2 rollout are key near-term drivers. However, token supply increases and Chainlink’s dominance could limit gains. The big question: Can PYTH maintain a fully diluted valuation over $1 billion as it moves from DeFi into traditional finance? Watch subscription revenue and staking activity after token unlocks for signs of direction.

What are people saying about PYTH?

Pyth Network (PYTH) is making waves with big institutional partnerships, but some investors are cautious due to upcoming token unlocks. Here’s the latest:

1. Phase Two aims at a $50 billion data market
2. U.S. government partnership sparks a 100% price jump
3. Traders watch for a key support level at $0.12

In-Depth Look

1. U.S. Government Partnership Drives Rally — Positive Signal

According to @the_smart_ape, PYTH’s price doubled after the U.S. Department of Commerce chose Pyth Network to provide economic data on the blockchain.
See original post
Why it matters: This partnership shows strong institutional support and opens up new revenue opportunities by distributing public sector data. It could make PYTH a key player in Web3 infrastructure.

2. Institutional Market Expansion — Positive Outlook

@Cipher2X highlights that Pyth’s Phase Two plans to enter the $50 billion market data industry by offering subscription data feeds to institutions.
See original post
Why it matters: Moving beyond decentralized finance (DeFi) into traditional finance markets could create steady income streams. PYTH’s token economics might include sharing fees with institutional users.

3. Technical Analysis Shows Mixed Signals — Neutral

A user from the CoinMarketCap Community notes that PYTH’s price broke through resistance at $0.15 but is now testing support around $0.12.
See original post
Why it matters: The recent 10% weekly price increase suggests positive momentum, but a 44% drop in trading volume over 24 hours indicates traders are cautious near these price levels.

Summary

Overall, sentiment around PYTH is leaning positive thanks to growing institutional interest and signs of price recovery. However, a large token unlock scheduled for May 2025, releasing $313 million worth of tokens, could add selling pressure. Investors are watching closely to see if Phase Two’s revenue potential justifies PYTH’s fully diluted valuation of $1.1 billion compared to Chainlink’s $23 billion. Keep an eye on new institutional partnerships and how tokens are distributed among holders for clues on PYTH’s future direction.

What is the latest news about PYTH?

Pyth Network is gaining momentum by expanding its role as a leading data provider for institutions. Here are the key updates:

1. U.S. Commerce Data Goes On-Chain (August 28, 2025) – PYTH’s price jumped 91% after becoming an official distributor of federal economic data.
2. bitcastle Exchange Listing (September 2, 2025) – PYTH is now available on a major Singapore-based exchange, improving access in the Asia-Pacific region.
3. Phase 2 Expansion (September 4, 2025) – Pyth plans to enter the $50 billion institutional data market with subscription services.

In-Depth Look

1. U.S. Commerce Data Goes On-Chain (August 28, 2025)

What Happened:
The U.S. Department of Commerce teamed up with Pyth Network to publish key economic indicators—like GDP, employment, and inflation—on nine different blockchains. This is the first time a federal agency has used blockchain technology to distribute important economic data. The new system cuts down data verification costs by about 70%.

Why It Matters:
This is a big win for PYTH because it shows that major institutions are adopting blockchain technology beyond just decentralized finance (DeFi). By providing reliable economic data on-chain, Pyth becomes essential infrastructure for financial products that rely on accurate inflation and economic figures. After the announcement, PYTH’s trading volume jumped 58% (Weex, Millionero).

2. bitcastle Exchange Listing (September 2, 2025)

What Happened:
PYTH was listed on bitcastle, a Singapore-based cryptocurrency exchange, with a PYTH/USDT trading pair. This expands Pyth’s reach in the Asia-Pacific market. PYTH is now available on over 55 exchanges, and transfers on the Solana blockchain are supported.

Why It Matters:
This listing improves liquidity and trading access, which is generally positive. However, PYTH’s 24-hour trading volume is still moderate at about 9.79% of its market cap ($99.5 million volume on a $1.02 billion market cap). To confirm strong demand, look for daily trading volumes consistently above $150 million (bitcastle).

3. Phase 2 Expansion (September 4, 2025)

What Happened:
Pyth announced plans to enter the institutional market for financial data, which is worth over $50 billion. They aim to offer subscription-based services like risk models and settlement tools. The Pyth DAO (decentralized autonomous organization) will vote on whether to accept PYTH tokens as payment, potentially linking the token’s value to the company’s revenue.

Why It Matters:
If successful, this could be a major growth driver. Capturing just 1% of the market could mean $500 million in annual revenue. However, Pyth faces strong competition from established players like Bloomberg and Refinitiv, so execution will be key (The Smart Ape).

Conclusion

Pyth Network is evolving from a decentralized finance oracle into a major player in institutional data services, supported by government partnerships and expanding exchange listings. While PYTH has gained nearly 36% in the past 30 days, the big question is whether the Phase 2 enterprise push will create lasting demand for the token. The success of Pyth’s DAO in aligning token use with its ambitious $50 billion market goal will be critical to watch.

What is expected in the development of PYTH?

Pyth Network’s roadmap focuses on attracting institutional users and expanding its global data coverage.

1. Institutional Subscription Launch (Q4 2025) – Introducing premium data feeds for traditional finance (TradFi) clients, paid with PYTH tokens.
2. Risk Models & Settlement Systems (2026) – Adding advanced analytics and tools for managing financial risks.
3. Asian Market Expansion (Q1 2026) – Extending data services to include Japan and South Korea after launching Hong Kong stock data.
4. DAO Governance Overhaul (Q4 2025) – Updating voting on token use, including revenue sharing from subscriptions.

Deep Dive

1. Institutional Subscription Launch (Q4 2025)

Overview:
Pyth Network plans to offer a paid subscription service aimed at institutional clients. This will provide premium data like detailed order books and dark pool liquidity, going beyond the free data currently available for decentralized finance (DeFi). The market for financial data is huge—over $50 billion—and PYTH tokens will be used for payments and governance decisions (Cipher2X).

What this means:
This is a positive development for PYTH because it creates a steady revenue stream. Institutions pay with PYTH tokens, which might be burned (taken out of circulation) or given as rewards to token holders. However, competition exists, especially from Chainlink’s similar service called CCIP.

2. Risk Models & Settlement Systems (2026)

Overview:
In 2026, Pyth will develop tools for assessing financial risks and managing collateral for derivatives traders. This builds on its partnership with the U.S. Department of Commerce, which provides important economic data like GDP and CPI (Millionero).

What this means:
This step diversifies what Pyth offers, moving beyond price data to more complex financial analytics. Success depends on how many traditional finance firms adopt these tools. If widely used, PYTH could become a key part of institutional DeFi infrastructure.

3. Asian Market Expansion (Q1 2026)

Overview:
After launching real-time data for Hong Kong stocks in July 2025, Pyth plans to add data for Japan’s Nikkei and South Korea’s KOSPI markets. This targets Asia’s massive $12 trillion equity market (Cointelegraph).

What this means:
This expansion could boost Pyth’s network effects, as Asian financial institutions are quick to adopt tokenized assets. However, regulatory challenges in Japan and South Korea might slow down progress.

4. DAO Governance Overhaul (Q4 2025)

Overview:
The Pyth decentralized autonomous organization (DAO) will vote on how to use revenue from institutional subscriptions. Possible changes include:

• Distributing staking rewards from subscription fees
• Using 20% of revenue to buy back tokens
• Implementing penalties for inaccurate data

What this means:
If these governance changes pass, it could increase the value of PYTH tokens by directly rewarding holders. On the downside, disagreements within the DAO could delay important decisions.

Conclusion

Pyth Network’s roadmap aims to connect traditional finance with decentralized finance by offering valuable data products and improving token utility through DAO governance. The token price surged 72% in 90 days following institutional news, but the key will be how well Pyth can grow subscription adoption and navigate regulatory hurdles in Asia. Can Pyth capture even 1% of the $50 billion market data industry while staying decentralized?

What updates are there in the PYTH code base?

Pyth Network’s latest software updates improve its real-time data system and developer tools.

1. Entropy V2 Upgrade (July 31, 2025) – Added custom gas limits and better on-chain randomness for decentralized finance (DeFi) applications.
2. Hong Kong Stock Data Integration (July 29, 2025) – Introduced real-time price feeds for 85 Hong Kong stocks across more than 100 blockchains.

Deep Dive

1. Entropy V2 Upgrade (July 31, 2025)

Overview:
Pyth enhanced its on-chain randomness engine, called Entropy V2, to make it easier for developers to build complex DeFi projects like games and prediction markets.

Key improvements include:

• Custom gas limits: Developers can now manage more complex processes, such as multi-step NFT creations, with better control over transaction costs.
• Improved error messages: Clearer codes help developers quickly identify and fix issues.
• New keeper network: Speeds up responses for randomness requests, reducing delays.

What this means:
This upgrade is positive for PYTH because it makes it easier for developers to create advanced DeFi products, which could lead to more use of the network. So far, it has handled over 10 million requests from apps like Infinex and Megapot.
(Source)

2. Hong Kong Stock Data Integration (July 29, 2025)

Overview:
Pyth added 85 real-time price feeds for Hong Kong stocks, updating every 400 milliseconds and available on over 100 blockchains.

Technical highlights:

• Pull-oracle model: Data is fetched only when needed, which lowers costs on the blockchain.
• Multi-source aggregation: Combines data from more than 90 trusted providers to reduce the risk of price manipulation.

What this means:
This update is neutral for PYTH in the short term but promising for the future. While it hasn’t yet increased the total value locked (TVL) on the network, it expands Pyth’s role in traditional finance (TradFi) and could attract institutional DeFi projects focused on Asian markets.
(Source)

Conclusion

Pyth’s updates focus on making the platform more scalable and integrating real-world financial data. This positions Pyth as an important bridge between traditional finance and decentralized finance. The key question is whether more institutions adopting its pull-oracle model will lead to steady demand for PYTH tokens.