Why did the price of PYTH go up?
Pyth Network (PYTH) increased by 2.26% in the last 24 hours, continuing its positive trend over the past week (+9.53%). However, it slightly lagged behind the overall crypto market, which dipped by 0.66%. Here are the main reasons behind this movement:
- Token Buyback Program Launch – PYTH DAO started monthly purchases of its own tokens using 33% of its revenue, helping to reduce selling pressure.
- Growing Institutional Use – Pyth Pro, the network’s premium data service, surpassed $1 million in annual recurring revenue, showing strong demand from businesses for real-time data.
- Technical Recovery Signs – Indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest short-term positive momentum.
Deep Dive
1. PYTH Reserve Launch (Positive Impact)
Overview:
On December 12, Pyth Network launched the PYTH Reserve, dedicating 33% of its treasury funds to buying back tokens every month. These buybacks are expected to range between $100,000 and $200,000 monthly, funded by revenue from services like Pyth Pro (which offers data subscriptions to institutions) and Express Relay (a fast trading infrastructure).
What this means:
By using its revenue to buy back tokens, Pyth Network creates a deflationary effect—meaning fewer tokens are available on the market, which can increase value. For example, Pyth Pro’s $1 million+ annual revenue (CryptoBriefing) directly supports these buybacks, linking the network’s growth to the token’s price. Similar buyback programs in other projects, like AAVE’s 2025 plan, have helped improve market sentiment even during downturns.
What to watch:
In the first quarter of 2026, the Pythian Council will review pricing strategies, which may change how aggressively buybacks are done depending on revenue trends.
2. Institutional Adoption vs. Market Challenges (Mixed Impact)
Overview:
Pyth’s real-time data feeds are now used by over 600 protocols across more than 100 blockchains, with institutional interest growing. However, the PYTH token is still down 84% from its peak in 2024, reflecting overall weakness in altcoins while Bitcoin remains dominant (59.28% market share).
What this means:
Partnerships like the one with the U.S. Department of Commerce in August 2025 (source) validate Pyth’s technology. Still, the token faces broader market risks: the crypto fear/greed index is at 28 (“Fear”), and spot trading volumes have dropped 25.6% in the past week.
3. Technical Indicators (Neutral to Bullish)
Overview:
PYTH’s RSI has bounced back from oversold levels (currently at 37), and the MACD histogram has turned positive for the first time since November. However, the price remains below the 30-day Simple Moving Average (SMA) of $0.0666, which acts as a resistance point.
What this means:
The MACD crossover points to short-term upward momentum, but for a sustained recovery, PYTH needs to break above $0.0589 (the 23.6% Fibonacci retracement level). The $0.0533 support level is also important—if the price falls below this, it could retest December’s low of $0.0481.
Conclusion
PYTH’s recent gains are driven by optimism around the buyback program and technical signs of recovery, but overall crypto market caution limits further upside. The success of the Reserve program depends heavily on Pyth Pro’s ability to capture a larger share of the $50 billion institutional data market. Key point to watch: Can PYTH break and hold above the $0.0589 resistance level amid relatively low trading volume ($11.7 million in spot volume)?
What could affect the price of PYTH?
Pyth Network’s (PYTH) price is caught between growing interest from big financial institutions and challenges in the broader market.
- Institutional Data Growth – Targeting a $50 billion market, capturing just 1% could mean $500 million in yearly revenue.
- Token Buybacks – The PYTH Reserve uses protocol income to buy back $100K-$200K worth of tokens each month.
- Government Partnerships – Working with the U.S. Commerce Department to put GDP data on the blockchain boosts credibility.
Deep Dive
1. Institutional Data Expansion (Positive for PYTH)
What’s happening: Pyth is shifting focus from decentralized finance (DeFi) to traditional finance (TradFi) by offering real-time market data subscriptions through Pyth Pro. The market for institutional data is huge—over $50 billion—and even a small slice (1%) could generate $500 million in annual revenue. Recent partnerships, like with xStocks and distributing U.S. GDP data, show early progress.
Why it matters: More institutions using Pyth means more demand for PYTH tokens, which are used to pay for these data services. A similar move by Chainlink in 2025 led to an 80% price increase in their token LINK.
2. PYTH Reserve and Token Buybacks (Mixed Impact)
What’s happening: Since December 2025, the PYTH Reserve has been using about a third of the protocol’s revenue (from Pyth Pro and other services) to buy back tokens every month, spending between $100,000 and $200,000. The protocol currently earns over $1 million monthly.
Why it matters: Buying back tokens reduces the number of tokens available on the market (currently 5.75 billion), which can support the price. However, PYTH’s price is still down 58% this year. Like AAVE’s buyback plan, success depends on continued revenue growth, especially since technical indicators like the Relative Strength Index (RSI) are low (37) and the price is below key moving averages.
3. Government Partnerships (Positive for PYTH)
What’s happening: In August 2025, Pyth partnered with the U.S. Commerce Department to publish GDP and other economic data on the blockchain. This deal caused PYTH’s price to jump 70%.
Why it matters: Government use of Pyth’s technology shows it can handle important, official data. This could lead to similar partnerships worldwide, similar to Chainlink’s work with SWIFT. However, relying on U.S. government support carries some geopolitical risks.
Conclusion
PYTH’s future depends on turning growing institutional demand into steady token use, while dealing with a tough overall market (Bitcoin dominance at 59%). The start of token buybacks and upcoming revenue reports in early 2026 will be key moments to watch. The $0.066 price level is important support—if PYTH falls below that, it could revisit 2025 lows near $0.05.
What are people saying about PYTH?
Conversations around Pyth Network (PYTH) mix excitement about big institutional deals with cautious views on price movements. Here’s the latest:
- U.S. government partnership sparks optimism – A deal with the Commerce Department led to a 100% price jump
- Next phase aims at a $50 billion market – Plans include subscriptions, risk models, and revenue sharing
- Reserve launch creates mixed feelings – Some see buybacks as positive, others worry about token unlocks
Deep Dive
1. @the_smart_ape: U.S. Commerce Deal Shows Institutional Confidence 🔥
“$PYTH jumped 100% after being selected to verify and distribute federal economic data on the blockchain. With a $1.1 billion fully diluted valuation (FDV) compared to Chainlink’s $23 billion, there’s room for growth.”
– @the_smart_ape (57K followers · 21K likes · Sept 5, 2025, 07:59 UTC)
View original post
What this means: This is a positive sign for PYTH because government use validates its technology and could lead to steady income from institutional data subscriptions.
2. @cuongtran2024: Price Breakout Targets $0.85 Amid Buying Interest 📈
“PYTH broke its weekly downtrend. Buy at $0.167, target price between $0.322 and $0.855.”
– @cuongtran2024 (23K followers · 8,974 posts · Sept 7, 2025, 01:34 UTC)
View original post
What this means: The technical signals suggest potential gains, but the ambitious 5x price target may overlook PYTH’s recent 60% drop over 90 days and weak support near $0.06.
3. @PythNetwork: Reserve Program Aims to Support Token Value with Buybacks 🔄
“PYTH Reserve uses ecosystem revenue to buy back tokens monthly. Pyth Pro is already generating over $1 million in annual revenue.”
– @PythNetwork (291K followers · 16K posts · Dec 12, 2025, 10:16 UTC)
View original post
What this means: This could help reduce token supply and support price, but daily decentralized finance (DeFi) activity has dropped 96% since September, raising concerns about ongoing demand.
Conclusion
The outlook on PYTH is mixed. Institutional adoption, like the Commerce Department deal and upcoming Phase 2 plans, is encouraging. However, technical resistance and token unlock schedules create uncertainty. Keep an eye on whether the Reserve’s monthly buybacks, starting December 2025, can balance out the 36% of tokens released into circulation in May 2025. For traders, the $0.06 to $0.12 price range will be important for short-term momentum.
What is the latest news about PYTH?
Pyth Network is facing some challenges in the market but is taking important steps like buybacks and new partnerships to strengthen its position. Here are the key updates:
- DAO Starts Buyback Program (December 12, 2025) – PYTH DAO is using one-third of its treasury funds each month to buy back PYTH tokens.
- Cardano Integration Launches (December 13, 2025) – Pyth’s price data now supports Cardano’s decentralized finance (DeFi) applications.
- Institutional Interest Shifts (December 23, 2025) – Large holders are selling some PYTH tokens, while exchanges are seeing more deposits, indicating selling pressure.
In-Depth Look
1. DAO Starts Buyback Program (December 12, 2025)
What happened:
Pyth Network’s decentralized autonomous organization (DAO) began buying back PYTH tokens using about 33% of its monthly treasury income, which is roughly $100,000 to $200,000 at the start. This move comes after Pyth Pro, their premium service, exceeded $1 million in yearly recurring revenue. The funds from this revenue are being used to support the PYTH token’s value.
Why it matters:
This buyback program is a positive sign because it links the network’s earnings directly to demand for the PYTH token, similar to how companies buy back their own stock to increase value. However, some worry about possible regulatory issues and whether this approach can overcome broader market challenges. (kanalcoin)
2. Cardano Integration Launches (December 13, 2025)
What happened:
Pyth’s real-time price feeds are now live on the Cardano blockchain, using a new system that updates data faster and more reliably than older methods. This integration also includes important economic data verified by the U.S. Department of Commerce.
Why it matters:
This strengthens Pyth’s role in providing trusted data for institutional finance and real-world asset markets on Cardano. However, Cardano’s current stablecoin market is relatively small (around $40 million), which limits immediate growth potential. (coinmarketcap)
3. Institutional Interest Shifts (December 23, 2025)
What happened:
Large holders of PYTH tokens reduced their holdings by about 2% (around 1.84 million tokens) last week, while the amount of PYTH tokens held on exchanges increased by 2.7% to 226.73 million tokens. Technical analysis shows a bearish pattern that could push prices down to between $5 and $8 if support at $11.08 fails.
Why it matters:
More tokens on exchanges usually mean more selling pressure in the short term. Still, Pyth’s growing use by institutions, such as distributing U.S. GDP data, might help balance out these negative signals. (CoinMarketCap)
Conclusion
Pyth Network is focusing on building strong partnerships and improving its token economics to weather current market challenges. However, broader market conditions and technical price trends pose risks in the near term. The big question is whether the DAO’s buyback efforts can outpace selling by large holders or if competitors like Chainlink and Band Protocol will gain ground.
What is expected in the development of PYTH?
Pyth Network’s roadmap is focused on expanding its reach with institutions, improving governance, and diversifying its data offerings.
- Institutional Data Subscriptions (Q1 2026) – Launching premium market data feeds tailored for traditional finance firms.
- PYTH Reserve Activation (Ongoing) – Using protocol revenue to buy back PYTH tokens regularly.
- Global Equity Expansion (2026) – Adding real-time stock market data from Asia-Pacific and Europe.
- Governance Upgrades (2026) – Introducing staking rewards and letting the community decide on fees and treasury use.
Deep Dive
1. Institutional Data Subscriptions (Q1 2026)
Overview: Pyth is rolling out a subscription service that provides high-quality, real-time market data aimed at traditional finance companies. This service is part of their second phase and targets the large $50 billion market data industry by offering live prices for stocks, commodities, and economic indicators (Cipher X).
What this means: This is a positive sign for PYTH because attracting institutional clients could create steady revenue. Capturing just 1% of this market could mean about $500 million per year. However, competition from other data providers like Chainlink and regulatory challenges remain risks.
2. PYTH Reserve Activation (Ongoing)
Overview: Since December 2025, the Pyth DAO has been using about one-third of its protocol revenue—from services like Pyth Pro and Entropy—to buy back PYTH tokens every month. This helps support the token’s value as the ecosystem grows (KanalCoin).
What this means: This is generally positive because buybacks can reduce selling pressure from token unlocks. But the long-term success depends on continued revenue growth—Pyth Pro reached $1 million in annual recurring revenue by November 2025.
3. Global Equity Expansion (2026)
Overview: After adding Hong Kong stock data in mid-2025, Pyth plans to include real-time market data for Japanese, Korean, and European stocks. Their goal is to cover 90% of global equities by the end of 2026 (CoinLineUp).
What this means: This expansion is good for Pyth’s usefulness, especially for decentralized finance (DeFi) platforms that rely on diverse asset data. The main challenge will be matching the speed and reliability of traditional, centralized data providers.
4. Governance Upgrades (2026)
Overview: In the third phase, Pyth plans to introduce penalties for bad data (called slashing), flexible fee models, and better staking rewards. The community will have a say in setting fees and managing the treasury through the DAO (Pyth Blog).
What this means: This is promising for the long term because stronger governance can improve data quality and align incentives for token holders. However, if staking rewards are lower than expected, it could discourage participation in the short term.
Conclusion
Pyth Network’s roadmap aims to grow its institutional presence while fine-tuning its token economics, building on its early lead in real-time market data. Partnerships like the one with the U.S. Commerce Department add credibility, but success depends on competing effectively with players like Chainlink and navigating the complex regulations of traditional finance. An open question remains: how will PYTH handle scaling across multiple blockchain layers as the ecosystem becomes more fragmented?
What updates are there in the PYTH code base?
Pyth Network's latest updates focus on expanding cross-chain connections and offering advanced data tools for businesses.
- Cardano Oracle Integration (December 13, 2025) – Launched oracle services on the Cardano blockchain, making data accessible across multiple blockchains.
- Entropy V2 Upgrade (July 31, 2025) – Enhanced on-chain randomness with better customization and error handling for developers.
- Institutional Data Subscriptions (September 4, 2025) – Rolled out premium data feeds for institutions, managed through decentralized governance.
Deep Dive
1. Cardano Oracle Integration (December 13, 2025)
What happened: Pyth Network expanded its oracle services to the Cardano blockchain. Oracles are tools that provide real-world data to blockchain applications, like financial prices. This integration allows decentralized apps (dApps) on Cardano to access Pyth’s real-time financial data, updated every 400 milliseconds.
To make this work, Pyth adjusted its technology to fit Cardano’s unique system, which uses a different way of handling transactions called UTXO and supports smart contracts through Plutus. Now, developers on Cardano can use over 1,600 price feeds from Pyth, supporting applications like decentralized finance (DeFi) for loans and trading.
Why it matters: This broadens Pyth’s reach across major blockchain platforms, increasing demand for its data services. Connecting multiple blockchains strengthens Pyth’s role as a key infrastructure provider.
(Source)
2. Entropy V2 Upgrade (July 31, 2025)
What happened: Pyth improved its on-chain randomness tool called Entropy. Randomness is important for applications like games and NFT creation, where unpredictable outcomes are needed.
The upgrade added features like adjustable gas limits (which control transaction costs), clearer error messages, and a new network of “keepers” for faster responses. The API (the interface developers use) was also simplified to make integration easier.
Why it matters: While this update doesn’t directly increase revenue, it makes Pyth’s technology easier to use and more reliable. This could encourage more developers to build on Pyth, supporting long-term growth.
(Source)
3. Institutional Data Subscriptions (September 4, 2025)
What happened: Pyth launched a subscription service offering premium market data to institutional clients like banks and trading firms. This system is governed by the Pyth DAO (Decentralized Autonomous Organization) and dedicates 33% of revenue to buying back tokens, which can help support token value.
The backend was updated to handle different subscription levels and billing. Subscribers get access to fast, reliable data feeds covering stocks, commodities, and more, with service agreements that meet enterprise standards.
Why it matters: This creates a steady revenue stream from large clients, which can stabilize Pyth’s token economy and reduce pressure to sell tokens. However, success depends on convincing traditional financial institutions to trust decentralized data sources.
(Source)
Conclusion
Pyth Network’s recent updates highlight its focus on expanding cross-chain capabilities (with Cardano), improving developer tools (Entropy V2), and generating revenue through subscriptions. These steps support its goal to transform the $50 billion market data industry. The big question for 2026 is whether institutional adoption will grow fast enough to overcome regulatory challenges.