Popular oracle network Pyth has had a difficult time recently – at least price-wise

PYTH, the coin of the fast-growing network, has lost almost 12% in value over the past week. Currently, PYTH is trading at US$0.1346 (AU$0.1989), more than 88% down

Popular oracle network Pyth has had a difficult time recently – at least price-wise. PYTH, the coin of the fast-growing network, has lost almost 12% in value over the past week.

Currently, PYTH is trading at US$0.1346 (AU$0.1989), more than 88% down from its US$1.15 (AU$1.75) all-time high on March 16, 2024. On centralised exchanges (CEX), the Pyth Network had a trading volume of US$36.3 million (AU$56 million), while it had a much lower volume of just US$625k (AU$956k) on decentralised exchanges (DEX).

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Some of the price pressure is due to macroeconomic concerns, with Donald Trump renewing his tariff threats – this time quarrelling with the European Union. Another reason for the poor price performance is that the network had a token-unlock event just a few days ago.

Token unlocks introduce new coins into circulation according to pre-set vesting or release schedules. Large unlocks can flood the market, driving prices down as holders sell newly unlocked tokens.

Pyth Network’s latest unlock released 58.3% of its circulating supply. The 2.13 billion PYTH tokens are part of the total 10 billion tokens that will ever exist.

An initial supply of 1.5 billion PYTH tokens was released on launch in November 2023, with further unlocks after 6, 18, 30 and 42 months.

PYTH Primed for Increase as Network Activity Grows

Despite this, analyst and trader World of Charts said that based on technical analysis, Pyth might be ready for a doubling from current prices. His eyes are on the US$0.30 (AU$0.45) mark in the short term.

$Pyth After Breakout #Pyth Retesting Crucial Area, Successful Retest Can Lead 2x Rally From Here pic.twitter.com/Tqf4cfLvgT

The total value secured (TVS) of the Pyth network has also been increasing over the past year. It grew from just US$4 billion (AU$6.1 billion) to currently US$6.6 billion (AU$9.2 billion).

TVS measures the assets safeguarding a protocol – via staking, collateral or insurance.

A higher TVS deters attacks, builds trust by aligning stakeholder incentives and – when compared with metrics like market cap or total value locked (TVL) – aids in assessing collateralisation and risk.

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