- PYTH token has fallen almost 12% over the past week and trades 88% below its March 2024 all-time high of US$1.15, currently sitting at US$0.1346.
- The price decline stems from macroeconomic concerns over Trump’s renewed tariff threats against the EU and a recent token unlock that released 58.3% of circulating supply.
- Despite price weakness, analyst World of Charts suggests PYTH could double to US$0.30 based on technical analysis, while the network’s total value secured has grown from US$4bn to US$6.6bn.
- The Pyth Network follows a structured unlock schedule with releases at 6, 18, 30, and 42 months after the November 2023 launch, introducing 2.13 billion tokens from a total supply of 10 billion.
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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Pyth Price Falters Amid Tariff Threats, Token Unlock
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.
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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