Why did the price of PYTH fall?

Pyth Network (PYTH) dropped 1.12% in the last 24 hours, while the overall crypto market saw a slight gain of 0.25%. This decline fits into a larger trend where many altcoins are pulling back due to increased caution among investors, technical challenges, and competition from other projects.

1. Market challenges: Bitcoin’s share of the market increased to 59.2%, reducing the money flowing into altcoins.
2. Technical signals: PYTH is trading below important average price levels, indicating downward momentum.
3. Competition from Chainlink: Buzz around Chainlink (LINK), especially related to AI, attracted investor attention away from PYTH.

Deep Dive

1. Market-Wide Risk Aversion (Negative Impact)

What’s happening? Bitcoin’s dominance in the crypto market rose to 59.2%, up 0.33% in the past day. This shows that investors are moving their money into Bitcoin, which is seen as a safer option during uncertain times. The overall market sentiment is cautious, with the Fear & Greed Index at 34, indicating fear. Altcoins, including PYTH, have not performed as well, and the Altcoin Season Index shows that Bitcoin is currently favored.

Why it matters: Investors prefer Bitcoin’s relative stability over altcoins like PYTH, especially since the total amount of money in crypto has dropped nearly 20% compared to last year. PYTH’s trading volume also fell by nearly 22% to $27.67 million, which can lead to bigger price swings.

2. Technical Resistance Holds Firm (Negative Impact)

What’s happening? PYTH is facing several technical hurdles:

• Current price is $0.114, below the 30-day average price of about $0.135.
• The Relative Strength Index (RSI) is 41.66, which is neutral but trending down, suggesting weakening buying interest.
• The MACD indicator shows a small negative value, meaning bullish momentum is fading.

Why it matters: PYTH failed to break above the $0.1264 level, which triggered stop-loss orders and pushed the price down. The RSI below 50 and a "death cross" pattern (where the 50-day average falls below the 200-day average) are signs that sellers currently have the upper hand.

What to watch: If PYTH can close above $0.1264, it might signal a turnaround. But if it falls below $0.113, it could drop further to around $0.0996.

3. Chainlink’s AI Hype Diverts Attention (Negative Impact)

What’s happening? On October 23, Yahoo Finance reported that ChatGPT-5 named Chainlink (LINK) as a top altcoin pick. This was based on large investments by whales (over $230 million) and partnerships with U.S. government data providers.

Why it matters: Chainlink’s reputation as a "safe haven" oracle project has attracted investors, with LINK gaining 2.8% over the past week compared to PYTH’s 22% drop over 30 days. PYTH’s recent partnership with B2C2 on October 21 wasn’t enough to counter this shift in investor focus.

Conclusion

PYTH’s recent price drop reflects broader caution in the crypto market, technical challenges, and strong competition from projects like Chainlink. Key point to watch: Will PYTH maintain support at $0.113 as Bitcoin’s dominance peaks, or will more money flow out of altcoins? Keep an eye on Bitcoin’s market share and how investors feel about oracle projects like PYTH and Chainlink.

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What could affect the price of PYTH?

The value of Pyth Network (PYTH) depends largely on how well it is adopted by big institutions, changes in its token supply, and competition in the market.

1. Growing Institutional Use – The next phase aims at a market worth over $50 billion, which could significantly increase revenue.
2. Partnership with U.S. Government – Working with the government to share economic data on the blockchain shows growing acceptance and support.
3. Token Supply Increases – Over half of the tokens will become available by May 2026, which might lower the price due to more tokens being sold.

Deep Dive

1. Institutional Adoption & Phase 2 (Positive Outlook)

What’s happening: Pyth is moving beyond decentralized finance (DeFi) to serve a much larger market—over $50 billion—institutional market data. This includes tools for managing financial risks, settling trades, and meeting regulatory requirements. If Pyth captures just 1% of this market, it could earn about $500 million a year. A key development is the U.S. Department of Commerce’s partnership (announced August 2025) to publish GDP and other economic data on the blockchain, which adds credibility and practical uses for Pyth.

Why it matters: More institutions using PYTH tokens to pay for data subscriptions could increase demand and value. There’s also potential for token holders to earn rewards through revenue-sharing, but this depends on how well the decentralized organization (DAO) manages these plans.

2. Token Unlocks & Supply Dynamics (Potential Challenges)

What’s happening: By May 2026, 5.66 billion PYTH tokens—about 58% of the total supply—will become available. These tokens are meant for growing the ecosystem, rewarding the team, and public sales. In the past, when tokens were unlocked (like in May 2025), the price dropped by about 35%.

Why it matters: More tokens on the market could push prices down if demand doesn’t keep up. However, staking options offering around 32% annual returns in 2025 might encourage holders to keep their tokens locked up, reducing selling pressure.

3. Oracle Competition & Market Share (Mixed Outlook)

What’s happening: Pyth is a leader in providing data for derivatives trading, holding 60% of that market. However, it lags behind Chainlink in overall adoption. Pyth’s “pull-oracle” system updates data much faster (every 400 milliseconds) compared to Chainlink’s slower updates (minutes), but it depends heavily on the Solana blockchain.

Why it matters: Pyth’s strength in fast, high-frequency trading data could keep demand strong in certain areas. Still, Chainlink’s wider network and partnerships with major financial players like SWIFT and DTCC present ongoing competition.

Conclusion

The price of PYTH will likely be influenced by how well it attracts institutional users after Phase 2, how the market handles the large token unlocks, and how effectively it competes with Chainlink. The U.S. government partnership lowers regulatory concerns but ties Pyth’s success to how much the public sector embraces blockchain technology.

Key indicator to watch: Revenue from institutional data subscriptions each quarter after 2025.

The big question: Can PYTH’s governance adapt quickly enough to make the most of its early lead in traditional finance?

What are people saying about PYTH?

Pyth Network’s mix of big institutional interest and retail excitement has the crypto community divided. Here’s what’s trending:

1. U.S. government data deal sparks 70% price jump
2. Phase 2 aims at capturing over $50 billion market data industry
3. Concerns about token unlocks remain despite positive momentum

Deep Dive

1. Institutional Adoption Drives Growth – Positive Outlook

According to @the_smart_ape, Pyth Network’s Phase 2 plans to capture just 1% of the $50 billion market data industry, which could mean about $500 million in yearly revenue. The recent partnership with the U.S. Department of Commerce caused the token price to double. Despite this, Pyth’s fully diluted valuation (FDV) of $1.1 billion is still much lower than Chainlink’s $23 billion.
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What this means: This is a positive sign for PYTH because institutional partnerships bring in new revenue sources beyond decentralized finance (DeFi), potentially helping it catch up to competitors like Chainlink.

2. Retail Traders Eye Price Gains – Cautiously Optimistic

Twitter user @GACryptoO notes that after a 70% price surge following U.S. GDP on-chain news, some retail investors expect PYTH to soon reclaim its all-time high of $1.15. However, if Bitcoin holds above $112,000, stakers might target $0.30 next.
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What this means: This is cautiously optimistic. Technical traders see potential for price gains, but the current price of $0.114 is still 87% below the all-time high, meaning sustained institutional support is needed to maintain momentum.

3. Token Unlock in May Raises Concerns – Negative Outlook

CoinMarketCap reports that a large token unlock of $313 million (58% of total supply) is scheduled for May 19, 2025. Historically, such unlocks have led to price drops, as seen with a 21% weekly decline before. The Relative Strength Index (RSI) at 43.5 suggests weakening momentum despite a 45% increase in trading volume.
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What this means: This is a warning sign. Large token unlocks often put downward pressure on prices. However, some traders believe the price could bounce back if the market absorbs the selling pressure.

Conclusion

The outlook for PYTH is mixed. There’s optimism around institutional adoption, especially with the U.S. government data partnership and plans to expand in the market data sector. However, concerns about upcoming token unlocks create uncertainty. Keep an eye on the $0.1134 support level after the May unlock—if it holds, that could confirm a positive trend, but if it breaks, the price might revisit 2025 lows. For a project aiming to connect traditional finance (TradFi) and decentralized finance (DeFi), PYTH’s biggest challenge is turning excitement into steady revenue.

What is the latest news about PYTH?

Pyth Network is strengthening its connections with big financial institutions while expanding its reach into real-world data. Here are the latest updates:

1. B2C2 Joins as Data Contributor (October 21, 2025) – A leading institutional liquidity provider is helping improve Pyth’s crypto price accuracy.
2. Kalshi Prediction Market Integration (October 13, 2025) – Real-time event data now powers blockchain-based prediction platforms.
3. Blue Ocean Tokenized Equities Push (October 10, 2025) – Pyth becomes the data source for 24/7 U.S. stock trading using tokenized shares.

Deep Dive

1. B2C2 Joins as Data Contributor (October 21, 2025)

Overview: B2C2, a major player in institutional trading, started sharing its own trade data with Pyth Network. This adds direct pricing information from banks, hedge funds, and exchanges to Pyth’s existing data on over 2,000 assets. This reduces the need to rely on outside data sources.

What this means: This move makes Pyth a more reliable source for high-quality crypto price data, which is important for financial products like derivatives and decentralized finance (DeFi) platforms. Having more diverse data sources can lower the risk of price manipulation and attract more large-scale users. (Finance Magnates)

2. Kalshi Prediction Market Integration (October 13, 2025)

Overview: Pyth teamed up with Kalshi, a regulated platform where users can bet on real-world events like elections or economic changes. Pyth now streams these event results directly onto the blockchain.

What this means: This partnership allows decentralized finance apps to create contracts that respond to real-world events, expanding Pyth’s use beyond just traditional financial assets. This could increase demand for PYTH tokens as developers build new products for speculation or risk management. (Bitget)

3. Blue Ocean Tokenized Equities Push (October 10, 2025)

Overview: Blue Ocean Technologies, a U.S. stock trading platform, integrated Pyth to support trading of tokenized stocks. Pyth provides real-time pricing for stocks like Apple and Tesla, enabling trading around the clock.

What this means: Tokenized stocks represent a market worth over $450 billion. Pyth’s role here connects traditional finance (TradFi) with decentralized finance (DeFi), potentially increasing PYTH token use as more institutions adopt blockchain for stock trading and settlement. (Finance Magnates)

Conclusion

Pyth Network is becoming a key data provider for both crypto and traditional financial markets. Its recent partnerships focus on improving institutional data access, supporting prediction markets, and enabling 24/7 stock trading. As PYTH’s applications grow, it will be interesting to see how its token’s value adapts to these new financial opportunities.

What is expected in the development of PYTH?

Pyth Network’s roadmap is focused on growing its presence with institutions, expanding the types of data it offers, and increasing the usefulness of its token.

1. Institutional Subscription Launch (Q4 2025) – Introducing premium data feeds aimed at traditional financial institutions.
2. Risk Models & Regulatory Tools (2026) – Adding tools for risk management and regulatory compliance.
3. DAO-Driven Token Utility Upgrades (2026) – New ways to use $PYTH tokens for governance and payments.
4. Prediction Market Integrations (Ongoing) – Partnering with platforms like Kalshi to provide real-time event data.

Deep Dive

1. Institutional Subscription Launch (Q4 2025)

Overview: Pyth plans to offer subscription-based, high-quality data feeds tailored for large financial institutions. This targets the traditional market data industry, which is worth over $50 billion (Cipher2X). The data will include real-time information on stocks, commodities, and economic indicators such as U.S. GDP, building on its partnership with the U.S. Department of Commerce.

What this means: This is positive for PYTH because it creates steady revenue and encourages adoption by big financial players. However, Pyth will face strong competition from established companies like Bloomberg and Refinitiv, and must navigate regulatory challenges.

2. Risk Models & Regulatory Tools (2026)

Overview: In 2026, Pyth plans to expand beyond price data by developing tools for risk analysis, settlement processes, and regulatory compliance (the_smart_ape). This positions Pyth as a key infrastructure provider for tokenized assets and institutional decentralized finance (DeFi).

What this means: This development has a neutral to positive outlook in the long run. Its success depends on how well traditional finance adopts these tools and how smoothly Pyth can comply with financial regulations, which might slow progress.

3. DAO-Driven Token Utility Upgrades (2026)

Overview: The Pyth DAO (Decentralized Autonomous Organization) will vote on proposals to allow $PYTH tokens to be used for paying for data subscriptions and to share institutional revenue with token holders who stake their tokens (CryptoBriefing).

What this means: If these proposals pass, it could increase demand for $PYTH by linking token use directly to the platform’s growth. However, disagreements within the DAO could delay or block these improvements.

4. Prediction Market Integrations (Ongoing)

Overview: Pyth is providing real-time event data, such as election results and economic trends, through partnerships with prediction market platforms like Kalshi (AggrNews).

What this means: This adds new use cases for Pyth but has a neutral impact in the short term since prediction markets are still a relatively small part of the crypto ecosystem.

Conclusion

Pyth Network aims to connect traditional finance and decentralized finance by offering high-quality data and tools that meet regulatory standards. The upcoming institutional subscription service could drive significant demand for $PYTH tokens. However, challenges like competition from Chainlink and established data providers, as well as a cautious market environment (Fear & Greed Index: 32/100), present risks. The key question is whether Pyth’s early focus on government-level data will give it an edge over competitors.

What updates are there in the PYTH code base?

Pyth Network’s code is actively being improved, with recent updates making it easier to work across different blockchains and providing better tools for developers.

1. Anchor SDK Upgrade (October 24, 2025) – The Solana software development kit (SDK) was updated to improve security and compatibility.
2. Entropy V2 Improvements (October 24, 2025) – Enhanced error handling and more flexible gas limits for generating random numbers on the blockchain.
3. Lazer Sui SDK Launch (October 24, 2025) – New support added for integrating with the Sui blockchain.

Deep Dive

1. Anchor SDK Upgrade (October 24, 2025)

Overview: The Solana receiver SDK now uses Anchor version 0.31.1, which matches the latest Solana framework standards.
This update makes building smart contracts easier and safer by improving error reporting and fixing security issues. Developers get access to better tools that help catch problems early, reducing risks in decentralized finance (DeFi) apps.

What this means: This is a positive development for PYTH because it strengthens security for Solana-based projects that use Pyth’s price data, potentially attracting more developers. (Source)

2. Entropy V2 Improvements (October 24, 2025)

Overview: Updates to Entropy V2 include customizable gas limits and clearer error messages when requesting random numbers on-chain.
These changes help developers manage complex tasks like NFT creation or prediction markets without running into gas limits, and make troubleshooting easier.

What this means: This is neutral for PYTH since it improves existing features rather than adding new ones, but it makes the platform easier to use for apps relying on Pyth’s randomness services. (Source)

3. Lazer Sui SDK Launch (October 24, 2025)

Overview: A new SDK for the Sui blockchain simplifies adding Pyth’s price feeds to Sui-based apps.
It hides the complex details of Sui’s programming language, allowing developers to access real-time data with less coding.

What this means: This is a positive step for PYTH because it expands the network’s reach across multiple blockchains, strengthening its position as a leading multi-chain oracle. (Source)

Conclusion

Pyth Network’s recent updates focus on improving security, making development easier, and expanding to new blockchains. These are important factors for growing adoption in DeFi and other industries. To see how these changes affect PYTH’s role in delivering reliable data for institutions, follow their real-time progress on GitHub.