Pyth Network Price Prediction 2024-2030

What is Pyth Network Coin and what is it used for?

Pyth Network, ticker: PYTH, is a first-party oracle network designed to provide real-time, off-chain financial data to smart contracts and dApps on multiple blockchains. The data provided focuses primarily on financial price points, and what makes Pyth Network stand out is that it sources market data from major institutional sources.

First-party oracles and third-party oracles

First-party oracles refer to data sources (i.e. API providers) that publish data directly to the blockchain.

Third-party oracle refers to another party that obtains data from the data source through its API and publishes it to the blockchain. Essentially, this third party is a middleman, adding another level of complexity to the system and reducing the level of trust.

Removing this third party significantly reduces the attack vector for anyone looking to manipulate the data used on-chain by DeFi and other protocols. The benefits of using first-party oracles also include increased data transparency and efficiency compared to third-party oracles.

The Pyth network is an application chain called Pythnet (an application-specific chain that only allows a limited number of activities related to the application running on it). Python stores and updates the state of each price feed, and its consensus model and runtime are based on Solana's. It is a proof-of-authority blockchain where each publisher runs a validator node.

There are two participants in the Pyth Network protocol:

1. Publishers: They publish and update price feeds, and earn fees for doing so.
2. Consumers: Those who pay to access and use price data to inform their dApp or smart contract.

Unlike some competitors that use a “push” design, Pyth Network uses a “pull” design for their oracles. In a push design, publishers push prices regularly regardless of whether they are needed, while in a pull design, consumers pull out prices when needed, making the oracle more cost-effective.

Pythnet transactions are free for publishers, allowing them to update prices as often as possible without incurring costs such as gas fees. The fee for pulling oracle data is charged at a fixed price per update and is adjusted through governance votes. First, the fee is charged in the lowest possible denomination on the target chain, for example, 1 wei or 0.00000000000000000001 ETH on Ethereum.

Pythnet’s Data Participants and Cross-Chain Transfers

At the time of writing, Pyth Network hosts and provides over 380 real-time price points for major financial assets, including:

• Cryptocurrency
• Stocks
• ETF Series
• Foreign Exchange
• Commodity

This data comes from 90 First Party institutional resources include some of the world's largest exchanges, market makers, and financial services providers, which publish their proprietary price data on-chain. These include:

• Binance
• Gate.io
• Jane Street
• Chicago Trading Company
• European Exchange
• Bybit Company
• Gemini

Every price feed on the Pyth Network has multiple data providers, and the data provided by these participants is aggregated on-chain by Pythnet’s oracle program , and then generate the resulting price with a confidence interval, such as ETH: $2000 ± $1. Aggregating multiple feeds at the same price helps produce more trustworthy data feeds that are not compromised by a small group of malicious publishers.

Once aggregated, prices are broadcast across chains using a decentralized cross-chain messaging protocol, such as the Wormhole Network. This allows Pyth Network to support a large number of chains, and dApps on these chains can Read price feeds on its native chain without having to design a complex cross-chain network yourself. Ultimately, this makes integration easier.

Currently, the number of chains using the Pyth Network price feed exceeds 40. Over 230 dApps have integrated Pyth Network’s price feeds, securing over $1.5 billion in on-chain value.

PYTH Token Airdrop and Utility

On November 20, 2023, Pyth Network airdropped 1.5 billion PYTH tokens (1.5% of the total supply) to over 90,000 eligible wallets 15%) Interact with dApps using Pyth data on any supported blockchain, including Solana, Aptos, Osmosis, the EVM ecosystem, and more.

Eligible wallets have 90 days to claim their tokens, and users can view their PYTH short investment eligibility here.

The remaining 85% of the token supply is locked . It will be vested and distributed over the next 6-42 months: as publisher rewards, ecosystem growth funds, protocol development, and to private participants. Pyth’s token economics can be found here.

The PYTH token has a specific single use case within the Pyth network ecosystem for on-chain governance voting on community governance proposals. Tokens must be locked in the Pyth staking program to participate in governance votes.

Pyth Network Coin Overview

What affects the price of Pyth Network Coin?

Countless factors can affect the price of any coin, each coin has its own unique factors and PYTH is no exception.

• Bitcoin Halving: The 2024 Bitcoin halving event is expected to have the same price impact in 2025 as the previous one. So far this has involved Bitcoin and other altcoins hitting new ATH.
• Protocol Uptake: While Pyth Network’s price feed data is currently used by over 230 protocols, there is still plenty of room for growth, and demand for the oracle services provided by Pyth Network will only continue to grow. As the Pyth Network offers more price feeds, and more and more platforms want to integrate them, this will have a positive impact on the price of PYTH. Likewise, if the protocol favors other oracles over the Python network, the PYTH price may decline.
• Hacker: Pyth Network relies on third-party cross-chain services to transmit its data. If one of these platforms is compromised, the operations of the Pyth Network will also be compromised, and depending on the extent of the hack, could have a devastating impact on the price of PYTH.
• Network Upgrades: As a blockchain network approaches a major upgrade, speculation surrounding its tokens typically increases, leading to a price increase that either continues or declines once the upgrade is implemented.
• Competitor Action: Competition in the oracle space is fierce, with more than 40 tokenized projects in the Oracle ecosystem already, including Chainring. As these protocols evolve and upgrade, Pyth Network must keep up pace; otherwise, investors may jump ship.

Is Pyth Network worth buying?

Pyth Network is the latest token in a long line of oracle tokens. Oracles are necessary for the mainstreaming of blockchain technology, as a reliable source is needed to bring data on-chain for use in smart contracts.

An important selling point of Pyth Network is that it only provides first-party oracles to on-chain dApps and smart contracts. This is provided by a handful of other oracle providers in the space, and for those looking for data points, this direct line to the source is an attractive benefit.

Overall, the need for decentralized first-party oracle providers like Pyth Network has been to help enhance the legitimacy of DeFi, use blockchain assets, and help bring more people to Important topics on the chain. Therefore, the emergence of Pyth Network is very popular in the blockchain field.

Conclusion

Pyth Network operates in one of the many niches of blockchain technology. However, perhaps as with dApps and blockchain games, the services provided by Pyth Network are necessary for the development of the entire blockchain ecosystem.