Why did the price of PYTH fall?
Pyth Network (PYTH) dropped 3.03% in the last 24 hours, underperforming the overall crypto market, which fell 1.72%. The main reasons for this decline are:
- Technical breakdown – PYTH’s price fell below important moving averages, indicating a bearish trend.
- Market-wide risk-off – The Altcoin Season Index dropped 10% in one day as investors moved money into Bitcoin.
- Low trading volume – Trading activity decreased by 31.68%, increasing downward pressure on the price.
Deep Dive
1. Technical Breakdown (Bearish Impact)
Overview:
PYTH’s price fell below its 30-day Simple Moving Average (SMA) at $0.14965 and its 200-day Exponential Moving Average (EMA) at $0.16312. The Relative Strength Index (RSI) is at 38.38, which means the coin is nearing oversold territory but not quite there yet. The MACD histogram turned negative (-0.0036), confirming the downward momentum.
What this means:
Traders often see a drop below these long-term averages as a signal to sell. There isn’t much support until the price reaches $0.113, which was the low back in May 2025. This leaves room for the price to fall further if market sentiment doesn’t improve.
Key metric to watch:
If PYTH closes above $0.131 (the 38.2% Fibonacci retracement level), it could indicate a potential reversal in trend.
2. Altcoin Weakness (Bearish Impact)
Overview:
The Altcoin Season Index fell to 27 out of 100, a 10% drop in 24 hours, showing that investors are pulling money out of smaller cryptocurrencies. At the same time, Bitcoin’s market dominance increased to 58.86%, putting pressure on PYTH and other altcoins.
What this means:
PYTH, with a market cap of $682 million, is more vulnerable to changes in investor risk appetite. The Fear & Greed Index is at 32 out of 100, signaling “Fear” in the market, which tends to push investors toward safer assets like Bitcoin.
3. Partnership News Fails to Offset Bearishness (Mixed Impact)
Overview:
On October 13, PYTH announced a partnership with Kalshi, a prediction platform, to bring real-time event data onto the blockchain. Despite this positive news, PYTH’s price still fell 25% over the week.
What this means:
While this partnership is important for PYTH’s data ecosystem, the broader market sell-off overshadowed the news. Investors may also be cautious because Kalshi is currently raising $300 million in funding for September 2025 and faces regulatory scrutiny, which adds uncertainty.
Conclusion
PYTH’s recent price drop is mainly due to technical weakness and a general downturn in altcoins, which outweighs the positive impact of its new partnership. With the crypto market currently in a “Fear” phase and Bitcoin gaining dominance, PYTH’s price is likely to continue downward unless:
- Overall market sentiment improves, or
- PYTH shows clear adoption benefits from its Kalshi partnership.
Key watch: Can PYTH hold above $0.113, its May 2025 low, if market volatility continues?
What could affect the price of PYTH?
Pyth Network’s (PYTH) price depends on how well it is adopted by big institutions, changes in its token supply, and competition in the data oracle market.
- Growing Institutional Use – Aiming at a $50 billion+ market with subscription services (positive sign).
- Token Unlock Risks – 58% of tokens becoming available by May 2026 could lower prices (negative pressure).
- Competition with Chainlink – Faster data updates versus Chainlink’s larger network (mixed effects).
In-Depth Look
1. Expanding into Institutional Markets (Positive Impact)
What’s happening:
Pyth is moving beyond decentralized finance (DeFi) to serve large institutions by offering subscription-based real-time data feeds. A recent partnership with the U.S. government to publish economic data like GDP on the blockchain adds credibility. Capturing just 1% of this market could bring in over $500 million a year.
Why it matters:
If big institutions start using Pyth, demand for PYTH tokens could rise, especially if the network shares revenue with token holders through buybacks or other incentives managed by its governance system.
2. Large Token Unlock Could Pressure Prices (Negative Impact)
What’s happening:
By May 2026, 5.66 billion PYTH tokens (worth about $333 million at current prices) will become available, increasing the circulating supply by 58%. Past large unlocks, like one in May 2025, caused prices to drop significantly (72% decline).
Why it matters:
If demand doesn’t grow enough to absorb the new tokens, prices could fall. It will be important to watch how many tokens are staked (locked up) and whether the community-led DAO burns tokens to reduce supply and ease selling pressure.
3. Competing with Chainlink in the Oracle Space (Mixed Impact)
What’s happening:
Pyth offers very fast, first-party data updates every 400 milliseconds, which is attractive for certain financial applications. Chainlink, however, has a much larger network and handles 10 times more value ($43 billion vs. Pyth’s $20 billion). Recent partnerships, like with Kalshi’s prediction markets, show Pyth’s strengths in specific niches.
Why it matters:
Pyth’s speed advantage could help it gain market share in areas where low latency is critical, such as derivatives trading. Still, Chainlink’s established ecosystem means Pyth faces tough competition over the long term.
Conclusion
PYTH’s future depends on balancing rapid growth in institutional adoption with risks from a large increase in token supply and strong competition from Chainlink. We can expect some price swings in the short term due to token unlocks, but the potential revenue from Phase 2 could significantly increase its value. The big question is whether the DAO governance can align token economics with growing institutional demand or if token dilution will hold back progress. Keep an eye on staking activity and upcoming protocol upgrades planned for late 2025.
What are people saying about PYTH?
Pyth Network is generating a lot of buzz after a recent price surge, with discussions focusing on its growing institutional partnerships and future plans. Here’s what’s trending:
- U.S. partnership excitement – A 70% price jump following a deal involving GDP data
- Phase 2 roadmap – Aiming to tap into a $50 billion market for institutional data
- Trader reactions – Some buying on the spot market, others worried about token unlocks after reaching a high of $0.32
Deep Dive
1. @the_smart_ape: Institutional Adoption Play Bullish
"Phase 2 could capture 1% of $50B market = $500M annual revenue. PYTH’s $1.1B FDV vs LINK’s $23B suggests 20x upside."
– 124K followers · 2.1M impressions · Sept 5, 2025
What this means: This is positive news for PYTH. Expanding into institutional data subscriptions could create steady revenue streams linked to the token’s use, making it more valuable over time.
2. @GACryptoO: Post-Pump Speculation Mixed
"Hope PYTH reclaims $1.15 ATH! Entry 0.167, TP 0.855"
– 89K followers · 860K impressions · Aug 29, 2025
What this means: Retail investors are hopeful but cautious. The target price of $0.855 represents a big jump (over 600%) from the current $0.12 price, which might be overly optimistic given a recent 25% weekly drop.
3. CoinMarketCap: Unlock Anxiety Bearish
"May 2025’s $333M token unlock could double circulating supply – previous unlocks caused -76% drops"
– May 18, 2025 analysis
What this means: There is concern that a large token unlock scheduled for May 2025 could flood the market and push prices down. However, some believe that because these unlocks are planned, they reduce the chance of sudden sell-offs.
Conclusion
Overall, sentiment around PYTH is cautiously optimistic. The partnership with the U.S. Commerce Department confirms the strength of its data infrastructure, which is a positive sign. Traders are watching the $0.195 resistance level closely—if PYTH breaks above this, it could signal new momentum. If it fails, the price might drop back toward June’s low of $0.08. Also, keep an eye on PYTH’s turnover rate (7.17% as of Oct 16) as it can indicate changes in liquidity during important news events.
What is the latest news about PYTH?
Pyth Network is making strides in gaining institutional support and handling market ups and downs through important data partnerships. Here’s the latest update:
- Kalshi Prediction Data Integration (October 14, 2025) – Partnered with a CFTC-regulated platform to provide real-time event data directly on blockchain networks.
- Blue Ocean Tokenized Equities (October 10, 2025) – Supports round-the-clock U.S. stock trading with live price feeds.
- U.S. Economic Data Onchain (August 28, 2025) – Chosen by the U.S. Department of Commerce to publish key economic indicators like GDP and inflation on the blockchain.
Deep Dive
1. Kalshi Prediction Data Integration (October 14, 2025)
Overview:
Pyth Network teamed up with Kalshi, a regulated platform for prediction markets, to deliver real-time event data—such as election results and economic trends—to over 100 blockchain networks. This is the first major effort to bring regulated event data directly onto blockchains.
What this means:
This is a positive development for PYTH because it broadens its use beyond just pricing traditional assets. Prediction markets represent a $12 billion industry, and having reliable, verifiable event data could boost adoption in decentralized finance (DeFi) products like derivatives and hedging tools. (Bitget)
2. Blue Ocean Tokenized Equities (October 10, 2025)
Overview:
Blue Ocean Technologies, a U.S.-regulated trading platform, integrated Pyth’s live stock price feeds to enable 24/7 trading of tokenized U.S. equities. This partnership aims to connect traditional stock markets with blockchain-based settlement systems.
What this means:
This is somewhat positive for PYTH. It confirms that Pyth provides data suitable for institutional use. However, the immediate impact on PYTH’s price might be limited due to a recent overall market decline (down 24% in a week). Over time, this strengthens Pyth’s role in tokenized real-world assets (RWAs). (Finance Magnates)
3. U.S. Economic Data Onchain (August 28, 2025)
Overview:
The U.S. Department of Commerce started publishing important economic data—like GDP, employment, and inflation figures—directly on the blockchain using Pyth. This move improves transparency and makes the data more accessible. PYTH’s token price jumped 70% after the announcement but later dropped by 40%.
What this means:
This is a strong positive for PYTH because it positions the network as essential infrastructure for public economic data. The recent price drop likely reflects investors taking profits and a broader selloff in alternative cryptocurrencies. (NullTX)
Conclusion
Pyth Network is solidifying its role as a key link between traditional finance and decentralized finance through impactful partnerships. However, challenges like overall market weakness and a large token release scheduled for May 2025 ($333 million) could create short-term pressure. The big question is whether growing institutional demand for real-time data will outweigh concerns about token dilution as PYTH moves into its next phase.
What is expected in the development of PYTH?
Pyth Network's roadmap is focused on growing its use by institutions, expanding the types of data it offers, and connecting with multiple blockchain platforms.
- Institutional Subscription Launch (Q4 2025) – Introducing paid data feeds for businesses, increasing the usefulness of $PYTH tokens.
- US Government Data Expansion (2026) – Adding important economic data like employment and inflation directly on the blockchain.
- Asian Stock Markets (2026) – Expanding to cover $5 trillion in stocks across Asia after starting with Hong Kong.
- Prediction Market Integration (Ongoing) – Working with Kalshi to provide event-based data (like elections) across many blockchains.
In-Depth Look
1. Institutional Subscription Launch (Q4 2025)
What’s Happening?
Pyth is rolling out a subscription service aimed at businesses that need high-quality market data. This service will include advanced tools like risk analysis and compliance features. Payments for this service will be made using $PYTH tokens (Cipher2X).
Why It Matters
Positive: This creates a new way for Pyth to earn money and could increase demand for $PYTH tokens as companies pay for premium data.
Challenges: Getting big companies to switch from their current systems and dealing with regulations could slow adoption.
2. US Government Data Expansion (2026)
What’s Happening?
After partnering with the U.S. Department of Commerce in August 2025, Pyth plans to add key economic indicators like employment numbers and inflation data to its blockchain platform by 2026 (NullTX).
Why It Matters
Positive: This partnership boosts Pyth’s reputation and positions it as a trusted source for public economic data.
Neutral: The impact on $PYTH tokens might take time, depending on how quickly decentralized finance (DeFi) and traditional finance (TradFi) sectors use this data.
3. Asian Stock Markets (2026)
What’s Happening?
Following the launch of real-time stock data for Hong Kong in July 2025, Pyth plans to expand coverage to include major markets like Japan and South Korea, covering $5 trillion in stocks by 2026 (Pyth Network).
Why It Matters
Positive: Accessing fast-growing Asian markets can diversify Pyth’s revenue and user base.
Challenges: Navigating different regulations across Asian countries could be complex.
4. Prediction Market Integration (Ongoing)
What’s Happening?
Since September 2025, Pyth has partnered with Kalshi to provide real-time data from prediction markets—platforms where people bet on events like elections—to over 100 blockchains (CryptoBriefing).
Why It Matters
Positive: This expands Pyth’s use cases beyond traditional finance into speculative markets.
Neutral: Because prediction markets are a niche area, this may not immediately affect $PYTH token value.
Conclusion
Pyth Network is evolving from a decentralized finance data provider into a broader data platform serving multiple industries. Its growth strategy includes building partnerships with institutions and expanding into new regions. While these moves could increase the value and use of $PYTH tokens through subscriptions and governance, challenges like regulatory hurdles and competition remain. The key question is how quickly Pyth can turn its technical strengths into steady revenue.
What updates are there in the PYTH code base?
Pyth Network’s development is actively focused on expanding across different blockchains and improving its core technology.
- SDK Anchor Upgrade (October 15, 2025) – Improved compatibility with Solana blockchain using anchor-lang v0.31.1.
- Sui Blockchain Integration (October 15, 2025) – Released Lazer Sui SDK to support more blockchains.
- Entropy V2 Launch (July 31, 2025) – Enhanced randomness engine with easier-to-use features for developers.
Deep Dive
1. SDK Anchor Upgrade (October 15, 2025)
Overview: The pyth-solana-receiver-sdk was updated to anchor-lang v0.31.1, which improves how Pyth works with Solana smart contracts, making it more secure and easier to use.
This update helps developers interact with Solana programs more smoothly, with better error handling and support for the latest Solana tools. It also includes updated cryptographic libraries and faster data processing on the blockchain.
What this means: This is a positive development for PYTH because it strengthens Pyth’s role as the main oracle on Solana, making it easier for decentralized finance (DeFi) apps to integrate. (GitHub)
2. Sui Blockchain Integration (October 15, 2025)
Overview: Pyth launched the pyth-lazer-sui-js SDK, its first native integration with the Sui blockchain.
This SDK allows decentralized apps (dApps) on Sui to access Pyth’s real-time price data and randomness services, which are useful for DeFi and gaming. Early tests show fast response times, under 400 milliseconds, on the Sui mainnet.
What this means: This is neutral for PYTH because it opens new markets but faces competition from other oracles already on Sui. The impact will depend on how many Sui dApps adopt Pyth’s services. (GitHub)
3. Entropy V2 Launch (July 31, 2025)
Overview: Entropy V2 is an upgraded version of Pyth’s on-chain randomness engine, which handles over 10 million requests for applications like prediction markets and NFT minting.
Key improvements include customizable gas limits for complex operations, clearer error messages, and a new keeper network that speeds up callback execution. The integration process is now about 30% faster.
What this means: This is a positive update for PYTH because it expands use cases in Web3 gaming and decentralized financial products, which can increase demand for the PYTH token. (Source)
Conclusion
Pyth Network’s recent updates show a clear focus on growing across multiple blockchains (with the Sui SDK), improving core infrastructure (Entropy V2), and strengthening its position on Solana. With growing interest from institutions, especially after partnering with the U.S. Commerce Department, PYTH’s technical improvements could help it maintain a leading role in DeFi.