Why did the price of PYTH fall?

Pyth Network (PYTH) dropped 5.03% to $0.0647 in the past 24 hours, which is a sharper decline compared to its smaller losses over the past week (-2.94%) and month (-0.59%). The main reasons for this drop are:

1. Technical breakdown – The price fell below an important support level, with neutral momentum indicators showing little strength.
2. Altcoin weakness – Bitcoin’s growing market dominance (58.52%) suggests investors are moving money away from mid-sized altcoins like PYTH.

Deep Dive

1. Technical Breakdown (Negative Signal)

Overview: PYTH’s price slipped below its 7-day average price ($0.068) and is now testing the 30-day average ($0.062). The Relative Strength Index (RSI) is at 52.05, indicating neither strong buying nor selling pressure, but there’s no sign of a rebound yet. The MACD, a momentum indicator, is positive but weak, showing limited buying interest.
What this means: Without strong technical support, PYTH could face more selling pressure, especially since trading volume is relatively low ($14.35 million in 24 hours, about 3.86% of its market value). This price drop reflects cautious sentiment among traders after several months of lower price peaks.
What to watch: If PYTH closes below $0.062, it might retest its December low of $0.053. On the other hand, recovering above $0.068 would suggest the price is stabilizing.

2. Altcoin Weakness (Negative Impact)

Overview: Bitcoin’s share of the total cryptocurrency market rose slightly to 58.52%, while the Altcoin Season Index remains low at 31/100, indicating that Bitcoin is currently favored over alternative coins. PYTH, as a mid-sized altcoin, is particularly affected by this shift.
What this means: PYTH doesn’t have the trading volume or liquidity to withstand broad market moves away from altcoins. Its 5% price drop fits the pattern of weaker performance seen across many altcoins, despite an overall neutral market mood (Fear & Greed Index at 41).

Conclusion

PYTH’s recent price decline is mainly due to technical weaknesses and a broader market trend favoring Bitcoin over altcoins. This overshadows the longer-term potential benefits of its token buyback program. Key points to watch: Bitcoin’s market dominance and whether PYTH can hold the $0.062 support level in the next day or two.

What could affect the price of PYTH?

Pyth Network’s price is currently influenced by two main forces: growing interest from big institutions and the pressure from more tokens becoming available on the market.

1. Institutional Growth – Pyth is aiming to capture part of the $50 billion market data industry, including contracts with the U.S. government (positive for price).
2. Token Buybacks – The Pyth DAO uses about a third of its revenue each month to buy back tokens, reducing supply (positive for price).
3. Token Unlocks – Over half of all tokens will be released into circulation by May 2026, which could lead to selling pressure (negative for price).

Deep Dive

1. Institutional Data Adoption (Positive for Price)

Overview:
Pyth Network is shifting focus from decentralized finance (DeFi) to serving traditional financial institutions by providing real-time financial data. A key milestone is its partnership with the U.S. Department of Commerce starting August 2025, which will put important economic data like GDP directly on the blockchain. The next phase involves offering subscription services to traditional finance clients, aiming to capture about 1% of the $50 billion market data industry, which could mean around $500 million in yearly revenue.

What this means:
As more institutions use Pyth’s data services, demand for the PYTH token could increase since it’s used to pay for these services. The revenue generated, already over $1 million monthly from Pyth Pro, helps fund token buybacks, which can support the token’s price. Even a small share of the traditional finance market could significantly boost Pyth’s value.

2. DAO Buybacks vs. Token Unlocks (Mixed Impact)

Overview:
Pyth’s DAO commits 33% of its revenue from services like Pyth Pro and Entropy to buying back tokens every month, which helps reduce the number of tokens available and supports the price. However, large amounts of tokens are scheduled to be unlocked and released into the market—2.13 billion tokens (worth about $313 million) in May 2025, and another 2.13 billion by May 2027. This increase in supply could put downward pressure on the price.

What this means:
While buybacks can help balance out the increase in supply, the large token unlocks (58% of total supply by 2026) could lead to price drops if demand doesn’t keep up. For example, a previous unlock in May 2025 caused the price to fall by 21%, showing how sensitive the market is to these supply changes.

3. Technical & Competitive Landscape (Neutral Impact)

Overview:
Currently, PYTH trades at about $0.0646, which is 80% below its peak price in 2024. The key resistance level to watch is $0.0687. Technical indicators like RSI (Relative Strength Index) at 52 and MACD (Moving Average Convergence Divergence) suggest the price momentum is neutral right now. In terms of competition, Chainlink leads with a total value secured (TVS) of $43 billion compared to Pyth’s $20 billion. However, Pyth’s fast data feeds are attractive to platforms dealing with derivatives.

What this means:
If PYTH breaks above $0.07, it could spark short-term buying momentum. To compete effectively, Pyth needs to demonstrate it can handle multiple blockchains (over 100 supported) and maintain high-quality data to stand out from competitors.

Conclusion

The future price of PYTH depends on how well it balances growing interest from institutions with the challenges of increasing token supply. The buyback program and U.S. government partnership are positive signs, but upcoming token unlocks and broader market conditions could create volatility. Keep an eye on the $0.053 to $0.068 price range to see if Pyth’s revenue growth can overcome the selling pressure from token unlocks.

What are people saying about PYTH?

The buzz around Pyth Network (PYTH) mixes strong interest from big institutions with some cautious technical signals. Here’s the quick take:

1. Growing institutional support – A partnership with the U.S. government is driving optimism.
2. PYTH Reserve’s buyback plan – Good for the token’s economics, but the price hasn’t caught up yet.
3. Technical analysis shows mixed signals – Some hope for a price breakout, but bearish trends remain.

In-Depth Look

1. U.S. Commerce Department Partnership Sparks 100% Price Jump 🚀 Positive

According to @the_smart_ape, Pyth Network will help verify and share U.S. economic data on the blockchain. After this news, PYTH’s price doubled.
See original post
What this means: This partnership is a big vote of confidence from the government, which could increase demand for Pyth’s data services and its governance token, PYTH. It strengthens Pyth’s role in the blockchain space, especially among institutional users.

2. PYTH Reserve Aims for $50 Billion Data Market 📈 Mixed

@Cipher2X reports that Pyth’s Reserve plans to capture 1% of the $50 billion institutional data market, potentially generating $500 million in yearly revenue.
See original post
What this means: The Reserve uses some of its funds to buy back PYTH tokens, which can reduce supply and support price. However, PYTH’s price is still down 46% from its recent high, showing that investors remain cautious about how quickly these plans will pay off.

3. Technical Analysis Points to Possible Price Rise to $0.85 📊 Cautiously Positive

@tuyetphuong2026 notes that PYTH has broken a downward trend and is testing support around $0.167, with potential targets at $0.322 and $0.855.
See original post
What this means: This is a hopeful sign, but not a guarantee. The $0.16-$0.17 range was a resistance level earlier in 2025. If PYTH can stay above this level, it might signal a trend change. However, the Relative Strength Index (RSI) at 45 suggests momentum is still weak.

Summary

Overall, opinions on PYTH are mixed. The partnership with the U.S. government and the Reserve’s buyback strategy point to strong long-term potential. But the token’s price has dropped 36% over the past 60 days and faces resistance near $0.20. The upcoming buybacks by the decentralized autonomous organization (DAO), starting in December 2025, will be a key test to see if they can offset selling pressure from token unlocks. This will be important for proving the idea that Pyth’s revenue can support its token value.

What is the latest news about PYTH?

Pyth Network (PYTH) is making big moves to improve how market data is shared and used. Here’s a quick summary of the latest updates:

1. Pyth Reserve Flywheel (December 12, 2025) – A new tokenomics model designed to better reward everyone involved in the network.
2. US Commerce Data Partnership (August 29, 2025) – PYTH’s price jumped 70% after partnering with the U.S. Department of Commerce to share official economic data on the blockchain.
3. Institutional Market Expansion (September 5, 2025) – PYTH is aiming to serve a $50 billion+ market by offering subscription services for financial data.

In-Depth Look

1. Pyth Reserve Flywheel (December 12, 2025)

What happened: At the Solana Breakpoint event, Pyth Network introduced "The Pyth Reserve," a redesigned system that creates a cycle of rewards for data providers, users, and those who stake PYTH tokens. It also includes ways to share revenue and improve governance (how decisions are made).
Why it matters: This update could make PYTH more valuable by aligning the interests of everyone involved and adding new uses for the token. However, the success depends on how well these changes are put into practice. (Solana)

2. US Commerce Data Partnership (August 29, 2025)

What happened: The U.S. Department of Commerce teamed up with Pyth to publish key economic indicators like GDP, employment, and inflation directly on the blockchain. This is the first time a government has used decentralized oracles (trusted data feeds) for official economic data.
Why it matters: This partnership shows strong institutional trust in PYTH’s technology and expands the types of real-world data available on-chain. However, it may also attract more regulatory attention. (GA Crypto)

3. Institutional Market Expansion (September 5, 2025)

What happened: Pyth announced plans to enter the large institutional market for financial data, which is worth over $50 billion. They plan to offer subscription-based services for risk analysis and settlement systems. The community-run DAO will decide if PYTH tokens will be used as payment for these services.
Why it matters: Capturing even a small share of this market could bring in hundreds of millions of dollars annually, possibly allowing the network to buy back tokens and increase their value. (The Smart Ape)

Conclusion

Pyth Network is moving beyond typical decentralized finance (DeFi) oracles by focusing on institutional data services and updating its tokenomics. The key to success will be how quickly traditional financial institutions adopt on-chain data and how effectively the community governs the network. Will mainstream finance embrace blockchain-based data solutions soon?

What is expected in the development of PYTH?

Pyth Network is making steady progress with these key updates:

1. Institutional Subscription Launch (Q1 2026) – Introducing Pyth Pro, a premium data service aimed at traditional financial institutions.
2. Asian Equity Expansion (Mid-2026) – Adding $5 trillion worth of stock data from Hong Kong and other Asian markets.
3. Prediction Market Integration (Q4 2025) – Partnering with Kalshi to provide real-time event data for prediction markets.
4. PYTH Reserve Activation (Ongoing) – Using protocol revenue to buy back PYTH tokens every month.

In-Depth Look

1. Institutional Subscription Launch (Q1 2026)

What’s happening:
Pyth Pro is a new subscription service offering high-quality, real-time market data for stocks, commodities, and derivatives. It’s designed for big players like hedge funds and banks, aiming to shake up the $50 billion financial data market (Cipher2X).

Why it matters:
This could be a big win for PYTH by bringing in steady revenue—potentially $500 million a year if it captures just 1% of the market—and increasing the use of PYTH tokens for payments. The main challenge will be competing with established companies like Bloomberg.

2. Asian Equity Expansion (Mid-2026)

What’s happening:
After launching Hong Kong stock data in July 2025, Pyth plans to include $5 trillion in Asian stocks, covering markets like Japan and South Korea. Data updates will happen every 400 milliseconds through partnerships with local exchanges (Pyth Network).

Why it matters:
This move broadens Pyth’s coverage and taps into Asia’s growing interest in crypto and blockchain. However, regulatory issues in countries like China could slow down progress.

3. Prediction Market Integration (Q4 2025)

What’s happening:
Pyth is teaming up with Kalshi to stream data from regulated prediction markets—such as election results—to over 100 blockchains (AggrNews).

Why it matters:
This opens up new opportunities in decentralized finance (DeFi), like prediction platforms, and strengthens Pyth’s position as a key data provider. Success will depend on how regulators view on-chain event-based financial products.

4. PYTH Reserve Activation (Ongoing)

What’s happening:
A third of the protocol’s revenue from services like Pyth Pro is used each month to buy back PYTH tokens, which helps create demand and supports the token’s value (Coinspeaker).

Why it matters:
Over time, these buybacks reduce the number of tokens available on the market, which can help increase value. While recent price performance has been weak, this strategy aligns the token’s economics with the network’s growth.

Conclusion

Pyth Network is shifting focus from purely decentralized finance tools to offering paid data services for traditional financial institutions. Its roadmap highlights revenue-driven products and important partnerships. While challenges like technical delivery and regulatory compliance remain, Pyth’s emphasis on real-world data and smart token management could reshape its role in the market.

The big question: How will PYTH balance the need for decentralization with the demands of institutional data licensing?

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What updates are there in the PYTH code base?

In late 2025, Pyth Network (PYTH) made important updates to its technology, focusing on improving its randomness engine and integrating new smart contract features.

1. Entropy V2 Upgrade (July 31, 2025) – Improved the randomness engine with developer-friendly enhancements.
2. PYTH Reserve Launch (December 13, 2025) – Introduced a system to buy back tokens using protocol revenue, managed by the DAO.
3. Real-Time Data Integrations (August 28, 2025) – Added on-chain U.S. economic data feeds to support decentralized finance (DeFi) applications.

Deep Dive

1. Entropy V2 Upgrade (July 31, 2025)

What happened: Pyth upgraded its decentralized randomness engine to make it faster and easier for developers to use.

Key improvements:

• Custom gas limits allow more complex processes, like multi-step gaming features, to run smoothly.
• Simplified process with a single function call to request randomness, speeding up development.
• New keeper network reduces delays and provides clear error messages for easier troubleshooting.

Why it matters: Reliable and fast randomness is crucial for applications like gaming, prediction markets, and NFTs, which are growing areas in the Web3 space. This upgrade is a positive sign for PYTH’s future. (Source)

2. PYTH Reserve Launch (December 13, 2025)

What happened: The Pyth DAO started a buyback program that uses one-third of the protocol’s revenue to purchase PYTH tokens every month.

Technical details:

• Smart contracts automate how funds are allocated and how tokens are bought on the open market.
• Quarterly price reviews by the Pythian Council help balance revenue goals with user adoption.
• Revenue sources include Pyth Pro (generating over $1 million annually) and Express Relay, which fund the Reserve.

Why it matters: This move could help reduce selling pressure on PYTH tokens, but since DeFi activity on Pyth has dropped since September 2025, the short-term impact is uncertain. (Source)

3. Real-Time Data Integrations (August 28, 2025)

What happened: Pyth expanded its platform to include real-time U.S. economic data, like GDP figures, directly on the blockchain.

Key updates:

• Works across multiple blockchains including Bitcoin, Ethereum, Solana, and six others.
• Data is cryptographically verified to prevent tampering and ensure accuracy.

Why it matters: This development supports growing institutional interest in Pyth’s data services. However, PYTH token prices remain about 84% below their peak. (Source)

Conclusion

Pyth Network’s recent updates show a clear focus on strengthening both DeFi infrastructure (with Entropy V2) and institutional data offerings (through the PYTH Reserve and economic data feeds). While these technical improvements enhance the platform’s usefulness, the decline in DeFi activity presents a challenge. The key question for 2026 is how PYTH will balance demand from everyday users and large institutions.