Why did the price of PYTH fall?
Pyth Network (PYTH) dropped 3.05% in the last 24 hours, even though it gained 17.03% over the past 30 days. Here’s why:
- Profit-taking after a big jump (+53% in August 2025 following a partnership with the U.S. Department of Commerce).
- Market shift: Bitcoin’s dominance increased to 59.06%, indicating investors are moving away from riskier assets.
- Technical resistance: PYTH is struggling to stay above $0.07 despite positive signals from moving averages.
Deep Dive
1. Profit-Taking Pressure (Short-Term Downside)
PYTH’s price surged 53% in August 2025 after teaming up with the U.S. Department of Commerce to publish GDP data on the blockchain (Crypto Briefing). The recent 24-hour drop reflects traders selling some of their holdings near the $0.07–$0.10 price range.
Because PYTH has a low turnover ratio (5.83%), meaning fewer trades relative to its supply, its price can swing more sharply when investors decide to sell.
2. Altcoin Weakness vs. Bitcoin Dominance (Mixed Impact)
Bitcoin’s share of the overall crypto market rose to 59.06%, up 0.42% in the last day, while the Altcoin Season Index dropped 38.78% over the week. PYTH’s trading volume fell slightly by 0.79% to $23 million, underperforming the overall crypto market’s 0.85% gain.
This suggests investors are shifting funds into Bitcoin, seen as a safer asset, which puts pressure on mid-sized altcoins like PYTH. The market sentiment is neutral, with the Fear & Greed Index at 54.
3. Technical Resistance at Key Levels (Neutral)
PYTH is facing resistance around $0.0688 (the 23.6% Fibonacci retracement level) and its 7-day simple moving average (SMA) at $0.0675. While the MACD indicator is bullish (0.00106 vs. signal 0.000275), the RSI (Relative Strength Index) at 56.8 shows momentum is weakening.
Watch for a close above $0.07, which could push PYTH toward $0.0735 (recent swing high). If it falls below $0.0675, it might test $0.0634 (the 50% Fibonacci retracement).
Conclusion
PYTH’s recent dip is mainly due to profit-taking after a strong run, Bitcoin’s rising dominance, and technical resistance levels. Its partnership with the U.S. government and DAO-led token buybacks (Kanalcoin) provide solid long-term value. However, short-term price moves will depend on Bitcoin’s direction.
Key point to watch: Can PYTH hold above $0.0675 as altcoins try to bounce back?
What could affect the price of PYTH?
The future price of Pyth Network (PYTH) depends largely on growing use by institutions and a token buyback program, though a token unlock scheduled for May 2026 could create some short-term pressure.
- PYTH Reserve Buybacks – Starting December 2025, 33% of monthly revenue will be used to buy back tokens on the open market, creating steady demand.
- Institutional Data Growth – The U.S. Department of Commerce uses Pyth for on-chain GDP data, and Pyth Pro reached $1 million in annual recurring revenue (ARR), targeting a $50 billion market.
- Regulatory Support – The GENIUS Act (2025) clarifies crypto rules and approves U.S. spot crypto ETFs, encouraging growth in oracle services and real-world asset (RWA) applications.
Deep Dive
1. PYTH Reserve Buybacks (Positive for Price)
What’s happening:
The PYTH DAO will use one-third of its monthly revenue—coming from services like Pyth Pro and Core—to buy back PYTH tokens from the market. Early buybacks are expected to be between $100,000 and $200,000 per month. This creates a consistent demand for the token tied directly to how much revenue the protocol earns.
Why it matters:
By turning revenue into token purchases, the Reserve reduces the number of tokens available in circulation, which can help increase the token’s price. If Pyth Pro’s adoption grows quickly, this effect could be even stronger. Similar buyback programs, like Chainlink’s in 2025, led to significant price gains (around 80%).
2. Institutional Data Expansion (Positive for Price)
What’s happening:
Pyth Network is providing real-time economic data to the U.S. Department of Commerce for use on the blockchain, such as GDP figures. Additionally, Pyth Pro, their premium data service for institutions, hit $1 million in annual recurring revenue in its first month (December 2025).
Why it matters:
Landing government contracts shows that Pyth’s technology is trusted and opens access to a huge market estimated at over $50 billion. Even capturing a small portion (1%) of this market could add $500 million in yearly revenue, which would increase the Reserve’s ability to buy back tokens and boost the token’s usefulness.
3. Regulatory Tailwinds (Mixed Impact)
What’s happening:
The GENIUS Act, passed in 2025, clarified that most crypto tokens are not securities and approved spot crypto ETFs in the U.S. This creates a friendlier environment for services like Pyth that provide data to decentralized finance (DeFi) and real-world asset projects.
Why it matters:
Clearer regulations reduce risks for investors and could lead to more activity in DeFi and real-world assets, increasing demand for Pyth’s data services. However, international regulations like the EU’s MiCA framework could still impact the market in unpredictable ways.
Conclusion
The outlook for PYTH’s price is cautiously optimistic. The token buyback program and growing institutional adoption are strong positives, but the token unlock in May 2026 could create some selling pressure. For token holders, the growth in revenue and supportive regulations may outweigh concerns about increased supply. A key question remains: can Pyth Pro maintain its $1 million+ ARR pace through the first quarter of 2026?
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What are people saying about PYTH?
PYTH Network (PYTH) is making waves in the institutional data space. Here’s what’s trending:
- Partnership with U.S. Department of Commerce sparks a 70% price jump (positive sign)
- Phase 2 expansion aims at a $50 billion institutional data market (positive sign)
- Technical analysis shows a potential breakout to $0.85 if key resistance is overcome (mixed outlook)
Deep Dive
1. U.S. Department of Commerce Partnership 🚀 Positive
According to @GACryptoO, PYTH’s price surged 70% after being selected by the U.S. Department of Commerce to provide on-chain GDP data. This government endorsement confirms PYTH’s role as a trusted data provider, which could lead to increased demand from large institutions over time.
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2. Phase 2 Expansion Targets $50 Billion Market 💼 Positive
@the_smart_ape highlights that capturing just 1% of the institutional data market could generate $500 million in revenue for PYTH. Currently, PYTH’s fully diluted valuation (FDV) is $1.1 billion, compared to Chainlink’s $23 billion, suggesting significant growth potential if PYTH successfully rolls out enterprise subscriptions and risk modeling tools.
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3. Technical Breakout Pattern 📈 Mixed
@cuongtran2024 points out a possible technical breakout with entry at $0.167 and targets up to $0.855. The weekly downtrend appears broken, signaling bullish momentum. However, PYTH currently faces resistance around $0.17, while the price as of January 15, 2026, is $0.0683, indicating some short-term challenges.
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Conclusion
Overall, the outlook for PYTH Network is optimistic due to its growing institutional adoption, especially with government backing. However, some technical hurdles remain. Keep an eye on how the rollout of U.S. economic data (starting July 2025, according to OKX News) impacts ongoing use of the protocol beyond the initial excitement.
What is the latest news about PYTH?
Pyth Network (PYTH) is gaining traction with institutional users while managing challenges from token unlocks. Opinions on its price outlook are mixed. Here’s a quick update:
- PYTH’s Role with the U.S. Government (January 14, 2026) – PYTH was highlighted as a top crypto pick for January after partnering with the U.S. Department of Commerce to provide on-chain economic data, which helped push its price higher.
- Price Forecast for 2026 (January 8, 2026) – Analysts predict PYTH could reach between $0.30 and $0.60 by the end of 2026, depending on market conditions and adoption rates.
In-Depth Look
1. PYTH’s Role with the U.S. Government (January 14, 2026)
Summary: Pyth Network was named one of the most promising cryptocurrencies for January 2026, largely due to its new partnership with the U.S. Department of Commerce. PYTH will supply important economic data, like GDP figures, directly on the blockchain. This move boosts PYTH’s reputation in the oracle space, similar to how Chainlink gained attention earlier. After the announcement in late 2025, PYTH’s price jumped 80% in a single day and rose 53% over the month, showing strong market confidence.
Why it matters: This partnership is a big win for PYTH because it shows that government agencies trust its technology. It also opens doors for more real-world use cases beyond decentralized finance (DeFi), which could lead to more partnerships and staking opportunities. However, PYTH’s long-term success depends on continued adoption and a healthier overall crypto market.
(Source: CoinMarketCap)
2. Price Forecast for 2026 (January 8, 2026)
Summary: Technical analysis shows PYTH’s price stabilizing around $0.05 to $0.06. Predictions suggest it could climb to between $0.30 and $0.60 by the end of 2026 if it maintains key support levels. The token faces challenges from a large token unlock event in May 2025, when 2.13 billion tokens were released. Despite this, PYTH has shown signs of recovery since hitting lows in December 2025. Long-term optimism is tied to growth in DeFi and less selling pressure.
Why it matters: The outlook is cautiously neutral. While the technical signals point to potential growth, ongoing token unlocks and general sentiment toward mid-sized altcoins could slow progress. Watch the $0.10 to $0.16 price range closely—breaking above this could confirm a positive trend.
(Source: CoinMarketCap)
Conclusion
PYTH Network’s growing credibility with institutions and steady price consolidation suggest cautious optimism. However, token supply dynamics remain a challenge. A key question for 2026 is how expanding Phase 2—focused on institutional data subscriptions—will affect PYTH’s revenue and growth potential.
What is expected in the development of PYTH?
Pyth Network’s roadmap is focused on growing its presence with institutions and expanding its overall ecosystem:
- Institutional Data Subscriptions (Q1 2026) – Launching paid data feeds tailored for traditional finance companies.
- Risk Model Integration (Mid-2026) – Adding risk analysis tools to its on-chain data services.
- May 2026 Token Unlock – Releasing 2.1 billion PYTH tokens, which will affect the token supply.
- PYTH Reserve Buybacks (Ongoing) – Using part of the protocol’s revenue to buy back tokens every month.
Deep Dive
1. Institutional Data Subscriptions (Q1 2026)
Overview: Pyth is moving beyond decentralized finance (DeFi) by offering subscription-based access to high-quality market data—such as stock prices and foreign exchange rates—to traditional finance firms. This taps into a market worth over $50 billion. Early signs of adoption include partnerships like the one with the U.S. Department of Commerce (The Smart Ape).
What this means: This is a positive development for PYTH because it creates new revenue streams and increases the token’s usefulness for institutional clients. However, competition from established data providers like Bloomberg remains a challenge.
2. Risk Model Integration (Mid-2026)
Overview: In the second phase, Pyth plans to add risk assessment features—such as volatility measurements and settlement tools—to its data feeds. This will make the data more valuable for complex financial products like derivatives (Cipher X).
What this means: This could attract more advanced users from both DeFi and traditional finance, making it a moderately positive development. Success depends on how well these tools integrate with existing financial systems.
3. May 2026 Token Unlock
Overview: In May 2026, 2.13 billion PYTH tokens (about 21% of the total supply) will become available, following the original vesting schedule. Previous token unlocks caused price swings (Millionero).
What this means: This could put short-term downward pressure on the token price due to increased selling. However, if demand remains strong, the long-term impact could be neutral. Keep an eye on staking activity and buyback efforts.
4. PYTH Reserve Buybacks (Ongoing)
Overview: The Pyth DAO dedicates 33% of its revenue from products like Pyth Pro to buying back PYTH tokens every month. This strategy aims to support the token’s value as the ecosystem grows (Cryptobriefing).
What this means: This is a positive sign for token holders because regular buybacks can help stabilize prices and reward long-term investors. The effectiveness depends on continued revenue growth driven by institutional adoption.
Conclusion
Pyth Network is working to connect traditional finance and decentralized finance by monetizing data and building risk management tools. While upcoming token unlocks could cause short-term price fluctuations, initiatives like the PYTH Reserve buybacks are designed to balance supply and demand. The key question remains: Can Pyth maintain its momentum as Chainlink continues to dominate the oracle space?
What updates are there in the PYTH code base?
Pyth Network recently upgraded key parts of its technology to improve how it works and make it easier for developers to build on it.
- Entropy V2 Launch (July 31, 2025) – A better randomness engine with customizable settings and simpler integration.
- PYTH Reserve Implementation (December 12, 2025) – A new system that uses part of the network’s revenue to buy back PYTH tokens, supporting growth.
- Anchor Framework Upgrade (January 14, 2026) – Updated Solana software tools for improved security and compatibility.
Deep Dive
1. Entropy V2 Launch (July 31, 2025)
Overview: Pyth upgraded its on-chain randomness engine, which is important for applications like games, raffles, and prediction markets. The update includes customizable gas limits (which control transaction costs), better error messages, and a more responsive network that keeps things running smoothly. This makes it easier for developers to build reliable decentralized apps.
What this means: This is positive for PYTH because it helps attract more developers and projects by making the platform more dependable and easier to use. (Source)
2. PYTH Reserve Implementation (December 12, 2025)
Overview: Pyth now uses 33% of its revenue from various services (like Pyth Pro, Core, Entropy, and Express Relay) to buy back PYTH tokens every month. This creates a cycle where increased product use leads to more token demand, supporting the network’s growth.
What this means: This is good news for PYTH holders because it ties the network’s financial success directly to the token’s value, encouraging long-term growth as more institutions use Pyth’s services. (Source)
3. Anchor Framework Upgrade (January 14, 2026)
Overview: The pyth-solana-receiver-sdk was updated to the latest version of Anchor Lang (v0.31.1), a key software development kit for Solana. This upgrade improves security and ensures better compatibility with Solana’s newest tools. It also includes updates to dependencies for more stable performance.
What this means: This benefits PYTH by making it easier and safer for developers to integrate with Solana, helping Pyth maintain its role as a top oracle provider. (Source)
Conclusion
Pyth Network is strengthening its technology to offer enterprise-level reliability, focusing on improving developer tools, token economics, and security across blockchains. These upgrades set the stage for faster institutional adoption in 2026 and beyond.