Why did the price of PYTH fall?

Pyth Network (PYTH) dropped 1.62% to $0.0576 over the past 24 hours, extending its one-week decline to 2.64%. This performance was weaker than the overall crypto market, which fell by 1.43%. The main reasons behind this include:

1. Negative Technical Signals – PYTH is trading below important moving averages and shows bearish momentum.
2. Weakness in the Broader Market – Altcoins like PYTH are underperforming as Bitcoin’s market share increases.
3. No Positive News – There haven’t been any major updates to boost PYTH’s price.

1. Negative Technical Signals (Bearish Impact)

PYTH is currently trading below its 7-day average price ($0.05759) and 30-day average price ($0.063239). The MACD indicator, which helps show momentum, is negative (-0.00090972), signaling downward pressure. The RSI, a measure of how much an asset is overbought or oversold, is at 33.65—close to oversold but not yet indicating a price rebound.

What this means: Staying below these moving averages suggests sellers are still in control. While the RSI hints that the price might not fall much further, the overall momentum favors continued selling unless PYTH holds above the $0.055 support level.

2. Weakness in the Broader Market (Bearish Impact)

The total cryptocurrency market value dropped 1.43% to $2.96 trillion. At the same time, Bitcoin’s dominance—the percentage of the total market cap that Bitcoin holds—increased to 59.21%. The Fear & Greed Index, which measures market sentiment, is at 29, indicating “Fear.”

What this means: PYTH’s price decline fits a broader trend where investors are moving away from altcoins (alternative cryptocurrencies) and favoring Bitcoin during uncertain times. The low sentiment level means fewer investors are willing to take risks on mid-sized coins like PYTH.

Conclusion

PYTH’s recent price drop is mainly due to technical selling pressure combined with a weak overall crypto market and no positive news to counteract this trend.

Key point to watch: Will PYTH be able to maintain its $0.055 support level if the market continues to experience selling pressure?

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What could affect the price of PYTH?

PYTH’s price outlook is a balance between strong institutional adoption and ongoing supply challenges. This creates a tug-of-war between solid long-term fundamentals and short-term technical hurdles.

1. PYTH Reserve & Revenue – Monthly token buybacks funded by protocol revenue create a positive cycle that supports price growth as adoption increases.
2. Institutional Adoption – Partnerships with the U.S. Department of Commerce and integration with Cardano highlight Pyth’s role as key infrastructure, expanding its market reach.
3. Supply Unlocks & Market Sentiment – Large token unlocks scheduled for May 2026 and 2027 could increase selling pressure, while bearish technical signals challenge short-term price momentum.

Deep Dive

1. PYTH Reserve & Revenue Flywheel (Positive Outlook)

Overview: Launched in December 2025, the PYTH Reserve uses one-third of the DAO treasury’s monthly revenue to buy PYTH tokens on the open market (CryptoFrontNews). This creates a clear, rule-based demand tied directly to product use. Revenue is growing fast, with Pyth Pro generating over $1 million in annual recurring revenue (ARR) in its first month.

What this means: This system turns real customer usage into predictable buying pressure, helping support the token’s value. If revenue grows to $500 million ARR by capturing just 1% of the $50 billion+ institutional data market, the Reserve’s buying could significantly reduce selling pressure, providing a strong long-term foundation for price growth.

2. Institutional Adoption & Market Expansion (Positive Outlook)

Overview: Pyth is gaining recognition as a foundational data provider. The U.S. Department of Commerce chose Pyth to publish official GDP and economic data on the blockchain (NullTX). Additionally, Cardano recently integrated Pyth’s oracle technology to enhance its decentralized finance (DeFi) platform (CryptoSlate).

What this means: These partnerships show Pyth moving beyond niche DeFi use to become institutional-grade infrastructure. This broadens its market and demand, boosting credibility and encouraging more projects to integrate Pyth, which can create a positive cycle of growth and token demand.

3. Supply Unlocks & Technical Pressure (Negative Outlook)

Overview: PYTH faces supply increases from scheduled token unlocks. A major unlock in May 2025 released about 2.13 billion tokens (58% of the circulating supply then), contributing to a prolonged price decline. Another large unlock is planned for May 2026 (CoinMarketCap). Technically, the price is in a downward channel, with indicators like RSI at 39.02 and a negative MACD signaling bearish momentum.

What this means: These unlocks could add significant selling pressure, especially if market conditions remain weak. The current technical setup suggests the price may continue to fall in the short term. To reverse this trend, PYTH needs to break above key resistance levels (such as $0.0736) to signal a potential recovery.

Conclusion

PYTH’s price will depend on whether its innovative value-growth mechanism can outpace the pressure from upcoming token unlocks. The PYTH Reserve offers a strong long-term case by linking token demand directly to network success, but near-term supply increases and weak technical signals present challenges. For holders, it’s important to watch the balance between growing on-chain revenue and token supply dynamics.

Will institutional revenue growth from Pyth Pro be strong enough to overcome selling pressure from future token unlocks?

What are people saying about PYTH?

The conversation around Pyth Network (PYTH) is a mix of strong institutional support and some technical challenges. Here’s the quick summary:

1. Big Institutional Win – A major deal with the U.S. government boosts PYTH’s credibility and growth potential.
2. Tokenomics Improvement – The new PYTH Reserve links revenue to token buybacks, aiming to increase long-term value.
3. Technical Challenges – Despite solid fundamentals, the price chart shows a downward trend and upcoming token unlocks could add selling pressure.

Deep Dive

1. Institutional Growth and $50B+ Market Opportunity – Positive Signal

@the_smart_ape highlights:

"Pyth is entering Phase 2, targeting the $50B+ institutional market data industry... Capturing just 1% of this market could yield $500M in ARR... Following these developments, $PYTH’s price surged +100%."
– @the_smart_ape (66.9K followers · 5 September 2025 07:59 UTC)
View original post

What this means: This is a positive sign for PYTH. It shows the project is moving beyond just decentralized finance (DeFi) and aiming to serve large institutional clients. If successful, this could significantly increase revenue and demand for the PYTH token.

2. Launch of the PYTH Reserve Token Flywheel – Positive Signal

@solana reports:

"JUST IN: @mdomcahill from @PythNetwork announces The Pyth Reserve, a new token flywheel for the PYTH ecosystem."
– @solana (3.69M followers · 12 December 2025 09:22 UTC)
View original post

What this means: This is good news for PYTH because the PYTH Reserve creates an automatic system that uses the network’s revenue to buy back tokens. This reduces the total supply over time and ties the network’s financial success directly to token value.

3. Partnership with Kalshi for Prediction Market Data – Neutral to Positive

@AggrNews shares:

"PYTH NETWORK TEAMS UP WITH KALSHI FOR REAL-TIME PREDICTION MARKET DATA: PYTH"
– @AggrNews (30.7K followers · 13 October 2025 14:40 UTC)
View original post

What this means: This partnership expands PYTH’s data services into regulated prediction markets, showing growth in utility. While it’s a positive development, it may not immediately impact the token price as much as bigger institutional deals.

4. Bearish Pressure from $313M Token Unlock – Negative Signal

From CoinMarketCap Community:

"Pyth Network faces significant pressure ahead of a major token unlock scheduled for Monday, May 19... representing 58.62% of the circulating supply."
– Analysis from 19 May 2025
View original article

What this means: This is a warning sign. Large token unlocks increase the number of tokens available to sell, which can push the price down if demand doesn’t keep up. This remains a key risk for PYTH.

Conclusion

Overall, the outlook for PYTH is cautiously optimistic. The partnership with the U.S. government and the PYTH Reserve tokenomics upgrade provide strong reasons for long-term confidence. However, the token’s price is still in a downward trend, and upcoming token unlocks in 2026 and 2027 could create selling pressure. Keep an eye on the monthly PYTH Reserve buyback volume as a clear indicator of whether revenue growth is translating into real demand for the token.

What is the latest news about PYTH?

PYTH is gaining momentum thanks to growing institutional use and a major update to its token economics. Here are the key recent developments:

1. PYTH Reserve Launches (December 12, 2025) – A new system turns part of the protocol’s revenue into monthly token buybacks, directly linking the network’s growth to increased demand for PYTH tokens.
2. U.S. Commerce Department On-Chain Data Deal (August 28, 2025) – Pyth Network was chosen alongside Chainlink to publish official U.S. GDP and economic data on multiple blockchains.
3. DAO Treasury Token Buyback Starts (December 12, 2025) – The Pyth DAO began using 33% of its treasury funds to buy PYTH tokens every month on the open market.

Deep Dive

1. PYTH Reserve Launches (December 12, 2025)

Overview: Pyth Network introduced the PYTH Reserve, a new feature that creates a self-sustaining economic cycle. It automatically converts a portion of monthly revenue—earned from services like Pyth Pro (institutional data subscriptions) and Express Relay—into purchases of PYTH tokens on the open market. This update came after Pyth Pro exceeded $1 million in annual recurring revenue in its first month.
Why it matters: This is a positive sign for PYTH because it directly connects real, growing demand from institutions to consistent buying pressure on the token. It turns the network’s usefulness into real value for token holders.
(CCN)

2. U.S. Commerce Department On-Chain Data Deal (August 28, 2025)

Overview: In a groundbreaking partnership, the U.S. Department of Commerce selected Pyth Network and Chainlink as official providers to verify and publish important economic data—including Gross Domestic Product (GDP)—on-chain across nine major blockchains.
Why it matters: This is a strong endorsement of Pyth’s technology and trustworthiness, showing that a major government agency is adopting its decentralized data infrastructure. The announcement caused PYTH’s price to jump over 70%, reflecting strong market confidence.
(CryptoBriefing)

3. DAO Treasury Token Buyback Starts (December 12, 2025)

Overview: The Pyth DAO launched a token buyback program, approved by on-chain votes, that dedicates 33% of its treasury funds to monthly PYTH purchases. This runs alongside the revenue-driven PYTH Reserve, reinforcing the network’s goal of linking token value to product use.
Why it matters: This adds another layer of planned buying support, showing the DAO’s commitment to long-term token stability and growth. Together with the PYTH Reserve, it creates a strong two-pronged approach to improving PYTH’s token economics.
(CoinMarketCap)

Conclusion

PYTH is shifting from just a decentralized finance (DeFi) tool to a provider of institutional-grade data services, backed by a major U.S. government partnership and a new revenue-based tokenomics model. The combined efforts of the PYTH Reserve and DAO buybacks could help establish a solid price floor and drive the next phase of growth for the network.

What is expected in the development of PYTH?

Pyth Network is making steady progress with these key developments:

1. Big Token Unlock Coming in May 2026 – Around 5.66 billion PYTH tokens will be released, which could put downward pressure on the price.
2. Expanding into the Institutional Data Market (Phase Two) – Growing Pyth Pro subscriptions to tap into the $50 billion+ traditional market data industry.
3. Revenue-Driven Tokenomics with PYTH Reserve – Monthly token buybacks funded by protocol revenue to boost demand and support the token price.

In-Depth Look

1. Big Token Unlock in May 2026

What’s happening: In May 2026, about 5.66 billion PYTH tokens (roughly 58% of the circulating supply at the time) will be unlocked and become available (Millionero Magazine). This follows a similar unlock in May 2025 and is part of the original token release plan. When a large number of tokens enter the market, it can affect the price if there isn’t enough new demand to absorb them.

Why it matters: This event could create selling pressure in the short term, as early investors and team members may sell tokens. However, it’s neutral for the long-term health of the network because it completes the planned distribution, allowing the token’s value to be driven more by real-world use and fundamentals afterward.

2. Expanding into the Institutional Data Market (Phase Two)

What’s happening: Pyth is now in “Phase Two,” focusing on the institutional market data sector, which is worth over $50 billion annually (Cipher X). Their main product, Pyth Pro, is a subscription service designed for institutions and quickly reached over $1 million in annual recurring revenue within its first month (CryptoFrontNews). The plan includes adding more data feeds, risk models, and meeting regulatory requirements to better serve traditional finance clients.

Why it matters: This is a positive sign for PYTH because even capturing a small part of this huge market could generate significant revenue. That revenue supports the PYTH Reserve’s buyback program, linking institutional adoption directly to increased demand for the token.

3. Revenue-Driven Tokenomics with PYTH Reserve

What’s happening: Launched in December 2025, the PYTH Reserve uses one-third of the PYTH DAO Treasury’s funds to buy PYTH tokens every month on the open market (Coinspeaker). The money for these buybacks comes from revenue generated by four main products: Pyth Pro, Pyth Core, Entropy, and Express Relay. The Pythian Council reviews pricing quarterly to optimize fees and maximize revenue.

Why it matters: This creates a steady, built-in demand for PYTH tokens tied directly to how much the network is used and grows. It helps support the token price during market downturns and can boost value as adoption increases.

Conclusion

Pyth Network is shifting from just a decentralized finance (DeFi) oracle to a revenue-generating platform serving traditional finance. Its automated buyback program aims to turn that success into real token value. The biggest short-term challenge is managing the May 2026 token unlock, while long-term growth depends on winning institutional market share. The key question is how the increased token supply will balance with growing demand from the PYTH Reserve over the next year.

What updates are there in the PYTH code base?

Pyth Network's latest updates improve its oracle system, security, and tools for developers.

1. PYTH Reserve Launch (December 12, 2025) – A new system that uses part of the network’s revenue to buy back PYTH tokens every month.
2. Entropy V2 Upgrade (July 31, 2025) – An improved randomness engine with better controls and faster responses.
3. Entropy Verification Grants (October 28, 2025) – Rewards for developers who audit key smart contracts.

Deep Dive

1. PYTH Reserve Launch (December 12, 2025)

What it is: The PYTH Reserve uses smart contracts to automatically spend 33% of the network’s revenue (from services like Pyth Pro) to buy PYTH tokens on the open market every month. This creates a cycle that supports the token’s value.
Why it matters: This is good news for PYTH holders because it links the network’s earnings directly to token demand, which could make PYTH tokens more valuable by reducing supply. However, this depends on continued use of Pyth’s data services by big companies.
(Source)

2. Entropy V2 Upgrade (July 31, 2025)

What it is: Pyth improved its on-chain randomness engine, which is used to generate unpredictable results for applications like games and prediction markets. The upgrade adds custom gas limits (which control transaction costs), clearer error messages, and a new keeper network that speeds up processing.
Why it matters: This makes it easier and more reliable for developers to build apps using Pyth’s randomness features, encouraging more creative and efficient decentralized applications (dApps).
(Source)

3. Entropy Verification Grants (October 28, 2025)

What it is: Pyth is offering 1,000 PYTH tokens per blockchain network to developers who audit and verify the security of Entropy’s smart contracts.
Why it matters: While this doesn’t directly affect users, it improves the overall security and trustworthiness of Pyth’s infrastructure, which benefits developers and the community.
(Source)

Conclusion

Pyth Network’s updates focus on creating a sustainable token economy (PYTH Reserve), making development easier and more reliable (Entropy V2), and boosting security transparency (Verification Grants). These improvements could help Pyth grow and be adopted more widely in 2026.