What is Pyth Network? Why is PYTH Rising?

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11 Mar 2024

What is Pyth Network?

Pyth Network is a Solana-based blockchain oracle solution that provides real-time price data to smart contracts. Developed by Duoro Labs, Pyth was activated in Solana in 2021. Pyth Network also operates its own blockchain network, Pythnet, which is a fork of Solana.

Decentralized finance (DeFi) protocols can only provide direct access to on-chain data within their capabilities. Smart contracts and decentralized applications, on the other hand, need to receive information from the outside world in order to interact with off-chain systems. Moreover, for contracts to work smoothly, external information must be instantaneous and reliable.

At this point, blockchain oracles such as Pyth Network come into play.
Pyth Network provides real-time price data for cryptocurrencies, ETFs, stocks and commodities to over 40 blockchain networks. The blockchain oracle collects data firsthand from nearly 100 publishers, including centralized exchanges, market makers and large companies.

Unlike its predecessors, the Oracle solution receives data from the original owner of the data, not from open sources via nodes. For this, it encourages data owners to publish on the blockchain. Thus, reliability concerns are overcome.

Pyth refreshes the over 350 price streams it provides every 400 milliseconds to ensure the data is as up-to-date as possible. In this way, different blockchain networks can be interoperable.

In addition to Solana and Pythnet, it is possible to access Pyth Network's price feeds from many other blockchain networks such as Ethereum, BNB Chain, Optimism, Arbitrum, zkSync Era and Base.

What is PYTH?

PYTH is the governance token of Pyth Network. Cryptocurrency is used in many ways, from voting on proposals from blockchain participants to paying publishers. PYTH is also attracting the attention of investors, considering the rally on February 9.

In Pyth, which is a proof-of-authority network, decisions such as price changes, listing of new price feeds and software updates are made by network participants whose identity and competence have been previously verified. For this, it is necessary to stake PYTH on price flows.

Data publishers also need to lock PYTH to the network. PYTH is given as a reward for providing price flow.

In order to use Pyth Network's price feeds, it is necessary to pay an "update fee". This fee is paid in PYTH.

PYTH, which is listed on more than 30 central and decentralized cryptocurrency exchanges, can also be used as an investment tool. Binance, the largest central exchange in terms of market value, also opened PYTH parities for trading at the beginning of February.

Due to the nature of PoA coins, it is not possible to mine PYTH. All of the coins have already been produced on the blockchain network, which limits the total supply to 10 million.

Why is PYTH Rising?

Pyth launched an airdrop program called Pyth Retrospective Airdrop in November 2023; decentralized applications (dApps) that use data announced that they will distribute millions of PYTH coins to their users and community members.

In the first phase, a total of 163 million PYTH was distributed to dApp users and community members.

Pyth Network announced the second phase of its Retrospective Airdrop campaign on February 7. At this stage, decentralized applications that participated in the airdrop will receive their cryptocurrencies.

According to the announcement, 100 million PYTH will be distributed to over 160 dApps.

Pyth Network also reminded community members to closely follow the dApps that are eligible to participate in the airdrop.

PYTH Twitter address: https://twitter.com/PythNetwork