Why did the price of PYTH fall?

Pyth Network (PYTH) dropped 4.37% in the last 24 hours, underperforming the overall crypto market, which fell by 0.31%. Here’s a quick summary of the main reasons:

1. Technical Breakdown – Key indicators show bearish momentum as prices fall below important support levels.
2. Profit-Taking – After a strong 35.91% gain over the past 90 days, some investors are cashing out amid market uncertainty.
3. Token Unlock Concerns – Ongoing worries about past and upcoming token releases are weighing on sentiment.

In-Depth Analysis

1. Technical Breakdown (Bearish Signals)

What happened: PYTH’s price slipped below its 30-day simple moving average (SMA) of $0.1656 and its 7-day exponential moving average (EMA) of $0.1509. These are key technical levels that traders watch. The Relative Strength Index (RSI) is at 38.86, and the MACD histogram is slightly negative, indicating the coin is oversold but not yet showing signs of a rebound.

Why it matters: When prices fall below these moving averages, it often signals a downtrend. PYTH is now testing the 78.6% Fibonacci retracement level at $0.1619. If it falls below this, the next support level is around $0.1383, which was a low point back in May 2025.

What to watch: If PYTH closes above $0.15 daily, it might stabilize. But a drop below $0.1383 could lead to more selling pressure.

2. Profit-Taking After Recent Gains

What happened: PYTH’s price rose nearly 36% over the last three months, helped by partnerships like integrating U.S. Commerce Department GDP data and growing interest from institutions. However, the Fear & Greed Index is at 34, showing cautious sentiment, and the broader crypto market has dropped 6.69% over the past week. This has led some traders to take profits.

Why it matters: Investors locking in gains reduce buying pressure. PYTH’s 24-hour trading volume dropped 43.3% to $32.6 million, signaling less market activity.

What to watch: If daily trading volume stays below $30 million, the downward trend could continue.

3. Concerns Over Token Unlocks

What happened: Although no new tokens were unlocked recently, there’s concern about a large unlock scheduled for May 2025, when 2.13 billion PYTH tokens (worth about $313 million) will become available. Currently, only 57.5% of the total supply is in circulation, with more unlocks planned for 2026 and 2027.

Why it matters: Investors may sell early to avoid dilution, which can push prices down. The recent 33.11% price drop over 30 days matches patterns seen after previous unlock events.

What to watch: Monitor wallet activity on the blockchain for large holders moving tokens, which could indicate selling or accumulation.

Conclusion

PYTH’s recent price decline is driven by a combination of technical factors, profit-taking, and concerns about future token supply. While the project’s fundamentals, like its partnership with the U.S. government, remain solid, short-term market sentiment and broader crypto challenges are weighing on the price.

Key question: Will PYTH hold the $0.1383 support level, or will it test its yearly lows as the overall crypto market struggles?

What could affect the price of PYTH?

PYTH’s price is currently influenced by two main forces: growing use by institutions and changes in the number of tokens available.

1. Institutional Data Growth – Phase 2 aims to enter the $50 billion market for financial data (positive for price).
2. U.S. Government Partnership – Publishing key economic data like GDP on the blockchain through Pyth (increases demand).
3. Token Unlocks – 58% of tokens will become available by May 2026, which could put downward pressure on price.

Deep Dive

1. Institutional Data Expansion (Positive for Price)

What’s happening:
Pyth is moving beyond decentralized finance (DeFi) and targeting the large $50 billion market for institutional financial data. They plan to offer premium data feeds through subscriptions (Cipher2X). Currently, Pyth supports over 1,800 real-time price feeds and controls 60% of the DeFi derivatives market. Even capturing just 1% of the traditional financial data market could bring in $500 million in yearly revenue.

Why it matters:
If institutions start using Pyth’s data, the PYTH token will be needed to pay for subscriptions. The network’s governance system (DAO) could use some of this revenue to buy back tokens or reward holders who stake their tokens, which would likely increase the token’s price.

2. U.S. Economic Data on the Blockchain (Mixed Impact)

What’s happening:
The U.S. Commerce Department chose Pyth to publish important economic data like GDP on nine different blockchains. This news caused PYTH’s price to jump 70% in August 2025 (CryptoBriefing). However, this partnership is still in the early stages and doesn’t have guaranteed long-term funding.

Why it matters:
Government involvement adds credibility and can drive short-term interest. But for lasting impact, traditional financial institutions need to widely adopt onchain economic data. If that doesn’t happen, the token’s price could become unstable.

3. Token Unlocks and Supply Risks (Negative for Price)

What’s happening:
About 58% of PYTH’s total tokens (5.8 billion) are still locked but will gradually become available by May 2026. Past unlock events have led to price drops of 20-30% (CoinMarketCap).

Why it matters:
When many new tokens enter the market, it can reduce the value of existing tokens if demand doesn’t keep up. Traders often sell before unlocks, which can push prices down. However, staking rewards offering around 7% yield might encourage holders to keep their tokens, helping reduce selling pressure.

Conclusion

PYTH’s price over the next year or two will depend on how well it balances growing interest from institutions with the risks from token unlocks. The U.S. government partnership and Phase 2 expansion offer strong potential upside, but upcoming token releases and overall market sentiment (Fear Index at 34) could create challenges.

Key question: Will the DAO governance successfully use new revenue to benefit token holders through fee adjustments and buybacks? Keep an eye on upcoming votes related to these decisions.

What are people saying about PYTH?

The Pyth Network community is excited about new U.S. government data partnerships but cautious after the token’s price doubled recently. Here’s what’s happening:

1. Partnership with U.S. Commerce Department sparked a 70–100% price jump – positive sign
2. Technical analysts are debating whether the price will hold or pull back – mixed views
3. Phase 2 expansion aims to enter a $50 billion institutional data market – promising growth

Deep Dive

1. @RealAllinCrypto: U.S. Government On-Chain Data Deal – Positive News

"🚨 Alongside Chainlink $LINK, the U.S. Department of Commerce will work with Pyth to put GDP data on the blockchain. $PYTH +92% in 24H"
– @RealAllinCrypto (18K followers · 2.1M impressions · 2025-08-29 02:43 UTC)
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What this means: This is good news for Pyth Network because government use of its technology shows trust and could attract big institutional investors.

2. @the_smart_ape: Institutional Phase 2 Roadmap – Positive Outlook

"Pyth targets the $50 billion market data industry – capturing just 1% means $500 million in revenue. $PYTH’s fully diluted value is $1.1 billion compared to Chainlink’s $23 billion, showing 20x growth potential."
– @the_smart_ape (142K followers · 890K impressions · 2025-09-05 07:59 UTC)
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What this means: This is promising because Phase 2 will expand Pyth’s use beyond decentralized finance (DeFi), with token value linked to subscriptions from large institutions.

3. @GACryptoO: Profit-Taking Warning – Short-Term Caution

"Hope PYTH reclaims $1.15 all-time high 💸 BUT whales sold $166K after the rally – watch $0.19 support level!"
– @GACryptoO (9K followers · 310K impressions · 2025-08-29 06:52 UTC)
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What this means: This signals short-term risk, as some large holders are selling after the big price jump, which could lead to a price drop.

Conclusion

Overall, opinions on Pyth Network are mixed. There’s excitement about government adoption and growth potential, but also caution due to recent price volatility. Traders should watch how the U.S. GDP data integration (live since August 28) affects ongoing revenue for the protocol. Keep an eye on Pyth’s burn metrics and net flows on exchanges for clues about future price direction.

What is the latest news about PYTH?

Pyth Network is building on Solana’s momentum while expanding into AI and institutional data markets. Here are the latest updates:

1. Helius Launches $175M Solana Treasury (September 24, 2025) – PYTH is highlighted as a key ecosystem asset driving developer activity.
2. Moonlander Integrates PYTH Oracles (September 22, 2025) – This decentralized derivatives platform uses Pyth’s data for high-leverage trading.
3. Ozak AI Partners with Pyth (September 16, 2025) – Provides real-time data across 100+ blockchains for AI-powered trading tools.

Deep Dive

1. Helius Launches $175M Solana Treasury (September 24, 2025)

Overview:
Helius Medical Technologies invested $175 million into Solana (SOL), naming PYTH as a top player in the ecosystem. According to Santiment data, PYTH ranks third in developer activity on Solana, behind Wormhole. It plays a key role by providing price feeds for decentralized finance (DeFi) apps like Kamino and Jupiter.

What this means:
This is a positive sign for PYTH’s long-term usefulness, since Solana’s growth often benefits tokens within its ecosystem. However, PYTH’s price dropped 7% last week along with SOL’s broader market correction, showing that their prices are closely linked.
(Bitcoinist)

2. Moonlander Integrates PYTH Oracles (September 22, 2025)

Overview:
Moonlander, a decentralized derivatives platform backed by Crypto.com Capital, has integrated Pyth’s price feeds into its Cronos-based perpetuals exchange. This platform offers up to 1000x leverage. The goal is to prevent price manipulation by using real-time data from Pyth’s network of institutional data providers.

What this means:
This development is cautiously positive. Moonlander’s $33 million total value locked (TVL) shows early growth, but derivatives platforms often face regulatory challenges. If Moonlander grows, Pyth could benefit from increased fee revenue.
(Finbold)

3. Ozak AI Partners with Pyth (September 16, 2025)

Overview:
Ozak AI has partnered with Pyth to power AI-driven trading bots and analytics tools across more than 100 blockchains. This partnership comes amid a 900% surge in Ozak’s presale token price, though its long-term value remains uncertain.

What this means:
This is cautiously optimistic. Access to cross-chain data strengthens Pyth’s ecosystem, but the hype around AI means investors should be careful. The success of this partnership depends on Ozak delivering real, useful products.
(Decrypt)

Conclusion

Pyth Network is connecting decentralized finance, AI, and institutional users, but it faces challenges in execution amid a broader market downturn (a 32% price drop over the past month). The key question is whether PYTH’s real-world data partnerships can make up for slowing developer activity in Solana’s ecosystem.

What is expected in the development of PYTH?

Pyth Network’s roadmap is centered on attracting institutional users and broadening its real-time data services.

1. Institutional Subscription Launch (Q4 2025) – Introducing premium data feeds tailored for traditional financial institutions.
2. Risk Models & Regulatory Tools (2026) – Developing tools to support compliance and settlement processes.
3. U.S. Economic Data Integration (Ongoing) – Providing on-chain U.S. economic indicators through government partnerships.
4. Asian Equity Expansion (2026) – Adding stock data from Japan and South Korea after success with Hong Kong markets.

Deep Dive

1. Institutional Subscription Launch (Q4 2025)

Overview
Pyth Network plans to offer a subscription service aimed at institutional clients, delivering high-quality market data such as stocks and foreign exchange with improved speed and reliability. This move targets a share of the over $50 billion institutional data market (Cipher2X).

What this means
This is a positive development. Subscriptions could create new revenue streams and increase the usefulness of $PYTH tokens through fee-sharing. However, Pyth will face competition from established players like Bloomberg and Reuters, and adoption by traditional finance (TradFi) might take longer than expected.

2. Risk Models & Regulatory Tools (2026)

Overview
Pyth aims to build on-chain risk assessment and settlement tools, focusing on sectors that require strict compliance, such as asset tokenization. This effort builds on its partnership with the U.S. Department of Commerce to provide macroeconomic data (the_smart_ape).

What this means
This is cautiously optimistic. Regulatory tools could attract more institutional users but will require navigating complex legal requirements. Success here could position Pyth as a bridge between decentralized finance (DeFi) and traditional finance (TradFi).

3. U.S. Economic Data Integration (Ongoing)

Overview
Pyth is already delivering key U.S. economic data—like GDP, employment, and inflation—on multiple blockchains including Bitcoin and Ethereum. This initiative started in August 2025 and plans to expand to more datasets (PYTH surges 68%).

What this means
This is a strong positive. Working with government agencies validates Pyth’s technology and could increase demand for $PYTH tokens in public sector applications.

4. Asian Equity Expansion (2026)

Overview
Following the launch of real-time Hong Kong stock data in July 2025, Pyth plans to add Japanese and South Korean equities, targeting Asia’s massive $15 trillion equity markets (coinlineup.com).

What this means
This is promising. Asia’s crypto-friendly financial centers, like Singapore, could drive adoption, although regulatory challenges remain.

Conclusion

Pyth Network is evolving from a decentralized finance (DeFi) data provider into a comprehensive cross-chain data infrastructure platform. Its focus on institutional subscriptions and regulatory compliance tools are key growth areas. Partnerships with U.S. government agencies and expansion into Asian markets show Pyth’s ambition to connect traditional finance with blockchain technology. Will Pyth’s emphasis on compliance and fast, reliable data help it outpace competitors like Chainlink in the institutional space?

What updates are there in the PYTH code base?

Pyth Network has recently updated its software to improve data accuracy and add more real-time financial information.

1. Entropy V2 Upgrade (July 31, 2025) – Enhanced the system that generates random numbers on the blockchain, with better control over processing limits and error reporting.
2. Hong Kong Stock Feeds (July 29, 2025) – Added 85 real-time price feeds for Hong Kong stocks, useful for decentralized finance (DeFi) apps.
3. RFQ System Integration (July 7, 2025) – Introduced a way to get direct price quotes from market makers, reducing trading costs.

Deep Dive

1. Entropy V2 Upgrade (July 31, 2025)

Overview:
Pyth improved its on-chain randomness engine, which is important for applications like games and prediction markets that need fair and unpredictable results.

The upgrade allows developers to set custom limits on how much processing power (gas) callback functions use, provides clearer error messages, and includes a new network of “keepers” to speed up responses. Since launching, Entropy V2 has handled over 10 million requests and is used by platforms like Infinex and Megapot.

What this means:
This is positive for PYTH because it enables more advanced decentralized apps that rely on trustworthy randomness—such as fair NFT drops, gaming outcomes, and risk management tools. Developers now have more flexibility to create complex applications.
(Source)

2. Hong Kong Stock Feeds (July 29, 2025)

Overview:
Pyth added 85 new price feeds for stocks listed in Hong Kong, updating every 400 milliseconds.

These feeds collect data directly from major trading firms and exchanges, ensuring accurate prices for financial products like derivatives and lending platforms. This expansion brings Pyth’s total coverage to over 1,900 assets, including cryptocurrencies, stocks, and commodities.

What this means:
This update is neutral for PYTH’s value right now since it depends on DeFi projects using these new feeds. However, it strengthens Pyth’s role as a provider of diverse market data, which could attract institutional investors interested in Asian stock markets on blockchain.
(Source)

3. RFQ System Integration (July 7, 2025)

Overview:
Pyth’s Express Relay introduced a Request-for-Quote (RFQ) system for tokenized stocks, allowing direct price quotes from market makers.

This system lets platforms like xStocks request specific price quotes in USDC (a stablecoin), helping liquidity providers avoid losses from price swings. The RFQ system is already live on Kamino Finance, Titan Exchange, and Jupiter.

What this means:
This is good news for PYTH because it can lower trading costs and tighten price spreads, encouraging more use of Pyth’s infrastructure—especially for tokenized real-world assets (RWAs).
(Source)

Conclusion

Pyth Network’s recent software updates show a clear focus on delivering high-quality data for institutional users and supporting multiple blockchain platforms. While partnerships like providing U.S. GDP data get attention, these technical improvements are key to Pyth’s long-term usefulness. The big question remains: how will Pyth balance growing demand with maintaining decentralization and scalability?