Solana has made one of the greatest comebacks in recent months. In fact, it has bounced off its sub-$14 lows back to over $100 today. One of the reasons for this is to emergence of great projects in its ecosystem.
Today, we’re going to review Pyth network, a project garnering much hype in the Solana space. But, before we begin, let’s start with learning what Pyth network is.
What Is the Pyth Network?
In a nutshell, Pyth is an oracle project. This means that it provides data from off-chain or on-chain sources. These data are then sent over to financial Decentralized Applications (dApps). As of now, Pyth supports over 45 blockchains, including popular ones like:
- Ethereum.
- BNB Chain.
- Solana.
- Arbitrum.
- Optimism, and so forth.
Understanding Pyth’s Use Case
Now, the Pyth network is unlike any other oracle. As of now, it provides real-time data for over 400 low-latency price feeds. These price feeds comprise data from forex, crypto, commodities, and equities.
But, that isn’t all that’s impressive. There are more plus points to Pyth as well, including:
- Decentralization. Since Pyth is decentralized, its data is more trustworthy and secure.
- Accuracy. Pyth’s data is highly accurate as it updates every 0.4 seconds.
#PythNetwork delivers real-time price data across major asset classes
Developers have permissionless access to over 400 price feeds across digital assets and cryptocurrencies, FX and ETFs, commodities, and equities.
Explore the latest blog post below: pic.twitter.com/5i2yFoTQCL
— Pyth Network 🔮 (@PythNetwork) February 21, 2024
The State of Pyth Network
For sure, Pyth has seen good traction since its launch. Aside from supporting over 250 dApps, Pyth has:
- 70,000 daily active users.
- 2,600,000 daily interactions.
- Publisher price updates in the millions daily.
With the above activity, Pyth rakes in some daily revenue as well. So far, the network brings in about 50 to 80 $SOL per day. This equates to around USD$5,000 to USD$8,000 of revenue per day.
Consumers are required to pay fees to access the data through the protocol. These fees are charged at a fixed rate per Pyth price update on a target chain.
For the past month, the protocol fees have remained consistently in the range of 50-80 SOL.
$4.8k – $7.6k per day. pic.twitter.com/OnzGToNWyo
— Jake Pahor (@jake_pahor) January 29, 2024
As they say, the numbers don’t lie. Pyth has made a useful Oracle product. And, much of its target audience is using said product.
The $PYTH Token
Similar to any other crypto project, the Pyth network has its native token, $PYTH. Let’s take a look at its tokenomics and use cases below.
$PYTH Tokenomics
As of the time of writing, $PYTH has:
- A price of $0.5474.
- A market cap of $822.6 million.
- A Fully Diluted Valuation (FDV) of $5.4 billion.
Now, let’s dive into the $PYTH token allocation. The team allocates a huge 52% of the token supply for ecosystem growth. A further 22% is set aside for publisher rewards. Next, 10% will be for sales and protocol development. From this, we can see that the Pyth network team focuses on its ecosystem and community.
$PYTH Utility
The $PYTH token’s main use case lies in governance and staking. By staking $PYTH, stakers help to secure the network, while earning a sweet yearly return. Stakers can vote on proposals through governance. In turn, they have a say in the development of the Pyth network.
Team and Investors Behind the Pyth Network
Next, let’s take a look at the faces behind the Pyth project. For the team’s management, they comprise of:
- Mike Cahill (CEO).
- Jayant Krishnamurthy (CTO).
- Ciaran (COO).
With a doxxed team, investors are more confident and assured when investing in $PYTH. Speaking of investors, major ones include Delphi Digital, Multicoin Capital among many others.
Risks to Take Note Of
As with any investment, you’ll need to take note of the associated risks. For Pyth network, the two main risks are:
- Security. Any crypto project can fall prey to hacks or smart contract issues. Thankfully, Pyth has been audited by multiple parties including Certik. Moreover, it has a bug bounty program as well to improve its security.
- Competition. Pyth has many competitors in the oracle space. From stalwarts like Chainlink to new projects like Supra, many projects are competing for market share.
Conclusion
To sum it all up, momentum seems to be on the side of Pyth network. Indeed, it has risen swiftly to the top, by being the #2 oracle in terms of market cap. Its adoption and number of use cases have increased as well. Coupled with the success of its recent airdrop, Pyth network could turn out to be a mainstay in the oracle space.
However, crypto moves at a blistering pace. Pyth has to keep up by innovating to remain relevant. To keep updated on its developments, you can follow its X account here.
Note: This article was inspired by this tweet.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
