Why did the price of PYTH fall?

Pyth Network (PYTH) dropped 0.97% in the last 24 hours to $0.117, underperforming the overall crypto market, which rose 1.24%. This decline is linked to technical resistance levels, mixed feelings about progress in attracting institutional users, and competition from other oracle projects like Chainlink.

1. Technical Resistance – PYTH is facing strong resistance around $0.14 (the 23.6% Fibonacci retracement level).
2. Institutional Adoption Delays – Expansion into institutional data markets is still in early stages.
3. Chainlink Competition – Chainlink’s partnership with the U.S. government has drawn more attention, overshadowing PYTH’s progress.

Deep Dive

1. Technical Resistance (Bearish Impact)

Overview:
PYTH’s price is trading below important moving averages (30-day average: $0.133, 200-day average: $0.134), which suggests downward pressure. The $0.143 level, marked by the 23.6% Fibonacci retracement, has acted as a ceiling since late September 2025.

What this means:
Traders are likely taking profits near this resistance level. The Relative Strength Index (RSI) is at 45.11, indicating neutral momentum, and while the MACD histogram has turned slightly positive (+0.00116), the MACD line is still below the signal line, showing cautious market sentiment.

What to watch:
If PYTH can break and hold above $0.143, it could signal a positive trend change. If it fails, the price might retest lows from July 2025 near $0.08.

2. Institutional Adoption Progress (Mixed Impact)

Overview:
Pyth Network’s Phase 2 aims to expand into the institutional data market, which is worth over $50 billion (The Smart Ape). However, steady revenue sources like subscription services are still being developed.

What this means:
While the long-term outlook is positive, there is short-term uncertainty. PYTH’s price jumped over 70% after announcing a partnership with the U.S. Department of Commerce in August 2025, but momentum has slowed as investors wait for clear signs of institutional adoption.

3. Chainlink’s Competitive Edge (Bearish Impact)

Overview:
Chainlink (LINK) gained attention on October 23 when AI analysis revealed large investor accumulation and U.S. government data partnerships, drawing investment away from PYTH (Yahoo Finance).

What this means:
PYTH’s price is influenced by the overall oracle sector sentiment. Chainlink’s strong position in providing macroeconomic data like GDP and inflation has temporarily taken the spotlight away from PYTH’s focus on real-time stock and derivatives pricing.

Conclusion

PYTH’s recent price drop is due to technical challenges, slower-than-expected institutional adoption, and a shift in investor interest toward Chainlink. While PYTH’s long-term plans remain promising, short-term traders are cautious until Phase 2 shows more progress.

Key watch: Can PYTH maintain support at $0.113 (the 50% Fibonacci level) amid growing competition? Keep an eye on trading volume and updates on institutional partnerships.

What could affect the price of PYTH?

The future price of Pyth Network (PYTH) depends on how much institutions adopt it, changes in its token supply, and competition in the market.

1. Institutional Data Growth – Pyth is aiming to tap into a $50 billion market by partnering with government agencies.
2. Token Unlock Risks – A large release of tokens in May 2026 could put downward pressure on prices.
3. Oracle Competition – Chainlink leads the market, but Pyth offers faster and more accurate data.

Deep Dive

1. Institutional Adoption & Data Monetization (Positive Outlook)

Overview: Pyth is shifting focus from decentralized finance (DeFi) to serving institutional clients. It has teamed up with the U.S. Department of Commerce to put important economic data like GDP and employment figures directly on the blockchain (U.S. Commerce Dept.). The next phase aims to capture 1% of the $50 billion institutional data market by offering subscription services, potentially bringing in $500 million annually.

What this means: If institutions start using PYTH tokens to pay for data, it could increase demand and value. Revenue from these subscriptions might be used to buy back tokens or reward users who stake their tokens. When the U.S. partnership was announced in August 2025, PYTH’s price jumped 70%, showing how real-world use can boost value.

2. Token Unlocks and Supply Dynamics (Potential Challenges)

Overview: In May 2026, a large batch of 5.66 billion PYTH tokens (worth about $333 million) will be unlocked. These tokens are meant for publishers, ecosystem growth, and team incentives (CoinMarketCap). Past unlocks of this size have led to price drops of up to 76%.

What this means: This big increase in available tokens could lead to more selling, which might lower the price unless there’s strong demand from new institutional clients or staking programs. For example, a smaller unlock in May 2025 caused PYTH’s price to fall 21% in just one week, showing the risk of dilution.

3. Oracle Market Competition (Mixed Outlook)

Overview: Chainlink currently controls over 60% of the oracle market, which provides real-world data to blockchains. However, Pyth’s technology updates data every 400 milliseconds and sources information directly from over 90 institutions like B2C2 and Revolut (PrimeXBT). This makes it attractive for high-frequency trading and other fast-paced applications.

What this means: Pyth’s speed and data quality could help it gain market share in specialized areas like derivatives and DeFi. But Chainlink’s larger network and established reputation make it a tough competitor. In 2025, PYTH’s fully diluted valuation was $1.1 billion—only 5% of Chainlink’s $23 billion—indicating room for growth if adoption picks up.

Conclusion

PYTH’s price will likely fluctuate based on institutional adoption and token supply changes. Volatility may continue until the big token unlock in 2026, but ongoing partnerships with platforms like Kalshi and Hong Kong equities markets could strengthen its position in Web3 finance. The key question is whether new subscription revenue can balance out selling pressure from token unlocks. Keep an eye on DAO governance decisions about token burns and rewards to understand future price movements.

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What are people saying about PYTH?

The conversation around Pyth Network (PYTH) swings between excitement over big partnerships and concerns about its token value. Here’s the latest:

1. A partnership with the U.S. government is boosting confidence in PYTH as a key player in data infrastructure.
2. A shift to a new institutional phase is raising questions about how much revenue PYTH can generate versus potential dilution from decentralized finance (DeFi) activities.
3. Technical charts show mixed signals after PYTH’s price jumped 70% in August.

Deep Dive

1. Institutional Data Play Looks Promising

Crypto analyst @the_smart_ape highlights that Pyth aims to tap into the $50 billion market data industry. Capturing just 1% of that market could mean $500 million in revenue. The recent deal with the U.S. Commerce Department could position PYTH as the “Bloomberg Terminal” of crypto data — a trusted source for financial information.
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What this means: This is a positive sign for PYTH because institutional adoption could create steady revenue beyond the usual DeFi activities. Plus, the token’s usefulness could grow through governance by its community (DAO).

2. Skepticism After Price Rally

Another analyst, @GACryptoO, expresses doubt about PYTH’s price sustainability after it surged 70% to $0.19 in late August, still far below its all-time high of $1.15 from March 2024.
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What this means: Some traders are cautious, worried that the recent price jump might not last since it’s driven by news rather than long-term fundamentals.

3. Technical Analysis Shows Mixed Signals

According to a CoinMarketCap community post, PYTH’s price recently broke through resistance but is now testing that level again. The price is likely to move sideways between $0.11 and $0.13 before deciding its next direction.
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What this means: The short-term outlook is neutral. If PYTH can hold above $0.13, it might gain momentum for another upward move.

Conclusion

Overall, the outlook for PYTH is cautiously optimistic. Its partnership with the U.S. government and focus on institutional growth balance out concerns about token dilution and unlocked supply pressures. Keep an eye on the fully diluted valuation (FDV) compared to Chainlink ($1.1 billion vs. $23 billion). If PYTH’s Phase 2 plans succeed, the market could start valuing it more competitively.

What is the latest news about PYTH?

Pyth Network is making strides in gaining institutional users and expanding its data services, even as it faces challenges in the market. Here are the key updates:

1. B2C2 Joins as Data Contributor (October 21, 2025) – A leading institutional liquidity provider is now adding its real-time crypto pricing data to Pyth’s network.
2. Phase 2 Targets $50 Billion Market Data Industry (September 5, 2025) – Pyth is expanding into new areas like risk models and subscription services aimed at institutions.
3. U.S. Commerce Department Publishes GDP Data On-Chain (August 28, 2025) – A historic partnership that puts official economic data on blockchain, boosting PYTH’s price by 70%.

Deep Dive

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

What happened:
B2C2, a major player in providing liquidity for institutional crypto trading, started sharing its trade data with Pyth Network. This adds to Pyth’s already extensive network of over 2,000 real-time data feeds, which support more than 600 decentralized applications across 100+ blockchains. By getting data directly from banks, hedge funds, and exchanges, Pyth aims to reduce inconsistencies in crypto pricing.

Why it matters:
This partnership strengthens Pyth’s role as a reliable source of high-quality data for both decentralized finance (DeFi) and traditional finance (TradFi) platforms. Having institutions contribute data directly can improve accuracy and attract more business users. However, Pyth faces stiff competition from Chainlink, another major player in blockchain data services.
(Finance Magnates)

2. Phase 2 Targets $50 Billion Market Data Industry (September 5, 2025)

What happened:
Pyth Network announced the second phase of its growth plan, focusing on the huge $50 billion institutional market data sector. This includes offering subscription-based services for things like risk assessment models, settlement systems, and tools to meet regulatory requirements. The community-led organization (DAO) will decide how the $PYTH token fits into these new revenue streams.

Why it matters:
If Pyth captures even a small slice of this market, it could generate hundreds of millions in annual revenue, which might be used to buy back tokens or reward users who stake their tokens. Still, success depends on convincing traditional data providers to switch and proving that Pyth’s solutions are cost-effective.
(The Smart Ape on X)

3. U.S. Commerce Department Publishes GDP Data On-Chain (August 28, 2025)

What happened:
The U.S. Department of Commerce chose Pyth Network to publish official GDP and other economic data on nine blockchains, including Bitcoin and Ethereum. Following this news, PYTH’s token price jumped 70%, though it’s still significantly below its peak from 2024.

Why it matters:
This partnership is a big step toward using blockchain oracles—services that bring real-world data onto blockchains—for public infrastructure. It could lead to more government and enterprise contracts. While short-term price swings are possible, this move increases PYTH’s long-term value as a trusted source of verified on-chain data.
(Cointelegraph)

Conclusion

Pyth Network is connecting traditional finance and decentralized finance by offering reliable, institutional-grade data through key partnerships. The U.S. government deal and B2C2’s involvement boost its credibility, but the success of Phase 2 depends on turning enterprise interest into real revenue without compromising decentralized governance. The big questions remain: Can PYTH keep up with Chainlink’s strong market position and handle upcoming token unlocks?

What is expected in the development of PYTH?

Pyth Network’s roadmap is focused on growing its use by big financial institutions and expanding its data offerings:

1. Institutional Subscription Launch (Q4 2025) – Premium, real-time data feeds for traditional finance firms.
2. Asian Equity Expansion (Q1 2026) – Adding real-time stock data for major Asian markets worth over $5 trillion.
3. On-Chain Risk Models (2026) – Advanced risk analysis tools for both decentralized and traditional finance.

Deep Dive

1. Institutional Subscription Launch (Q4 2025)

Overview:
Pyth is introducing a subscription service aimed at institutional clients, tapping into the $50 billion market data industry (Cipher2X). This service will provide premium data feeds—like real-time stock prices and ETFs—with faster and more reliable delivery. The goal is to compete with established providers such as Bloomberg and Refinitiv.

What this means:
This is a positive step for PYTH because it opens new revenue streams beyond decentralized finance (DeFi). It could also increase the use of the PYTH token through subscription fees or shared revenue models. However, challenges include competition from Chainlink’s CCIP and potential regulatory issues around sharing data across borders.

2. Asian Equity Expansion (Q1 2026)

Overview:
After launching Hong Kong stock data in July 2025, Pyth plans to add real-time data for Japanese, Korean, and Indian stock markets (Pyth Network). These markets together are worth over $5 trillion. This will allow financial products like derivatives and lending platforms to use local stocks as collateral.

What this means:
This expansion is promising for adoption in Asia’s fast-growing crypto markets. However, there are risks in coordinating data providers across different countries. If successful, PYTH could become the main link between traditional finance and decentralized finance in the region.

3. On-Chain Risk Models (2026)

Overview:
In 2026, Pyth plans to develop risk assessment tools such as volatility measures and counterparty risk scores for institutions (the_smart_ape). These tools will use Pyth’s existing price data and work across more than 100 blockchains.

What this means:
This development could increase Pyth’s usefulness beyond just providing price data. However, its success depends on whether regulators accept these on-chain risk models.

Conclusion

Pyth Network’s roadmap focuses on attracting institutional users through premium data services, expanding into Asian markets, and offering advanced analytics. These moves could strengthen its role as a leading oracle in the Web3 space. The key question remains: Will PYTH’s combined decentralized and traditional finance approach attract enough paying customers to support its $677 million market value?

What updates are there in the PYTH code base?

Pyth Network’s codebase is actively being developed, with recent launches of new software tools and important infrastructure upgrades.

1. Lazer Sui SDK Launch (October 26, 2025) – A new software development kit (SDK) was released to help developers connect with the Sui blockchain.
2. Anchor Lang Upgrade (October 26, 2025) – The Solana development framework was updated to improve security.
3. Entropy V2 Improvements (October 26, 2025) – The on-chain randomness engine was enhanced with new features.

Deep Dive

1. Lazer Sui SDK Launch (October 26, 2025)

Overview: Pyth introduced a new SDK designed specifically for developers working on the Sui blockchain. This tool makes it easier to integrate Pyth’s real-time price data into Sui-based applications. Previously, Pyth mainly supported Solana and Ethereum, so this expands its reach to a new blockchain ecosystem.
The SDK simplifies how developers access Pyth’s price feeds and verify that the data is authentic right on the blockchain. This is especially useful for decentralized finance (DeFi) apps like lending platforms and derivatives trading.
What this means: This is a positive development for PYTH because it opens the door for more developers to use Pyth’s data on Sui, which is a growing blockchain platform. (Source)

2. Anchor Lang Upgrade (October 26, 2025)

Overview: The anchor-lang package, which is a key tool for building on Solana, was updated to version 0.31.1. This update improves security and makes sure the tool works well with the latest Solana software updates.
It fixes some vulnerabilities related to how smart contracts run and improves compatibility with new Solana program libraries. Developers need to update their tools to avoid any issues.
What this means: This is a routine maintenance update for PYTH. It helps keep the system secure and reliable but doesn’t directly affect users. Node operators should make sure to upgrade. (Source)

3. Entropy V2 Improvements (October 26, 2025)

Overview: Pyth’s randomness engine, which provides unpredictable data used in applications like gaming and NFTs, got several backend improvements. These include customizable gas limits (which control transaction costs) and better error messages for callback functions.
These changes let developers create more complex features without running into transaction limits. Also, a new keeper network helps reduce delays when requesting random data.
What this means: This is good news for PYTH because it strengthens its role in Web3 gaming and prediction markets, which are important growth areas. (Source)

Conclusion

Pyth Network’s recent updates show a clear focus on expanding to new blockchains (with the Sui SDK), improving security (Anchor upgrade), and enhancing functionality (Entropy V2). These improvements help position PYTH as a key infrastructure provider for the future of decentralized finance and gaming. The big question is whether increased developer activity on Sui will lead to measurable growth in protocol revenue.