Pyth Network’s exceptional update speed sets it apart and significantly increases its appeal, surpassing that of its competitor: Chainlink.
Pyth Network, a decentralized finance (DeFi) oracle service that competes with Chainlink, made headlines this week with a notable token airdrop valued at a staggering $77 million. The distribution of 250 million PYTH tokens to early Pyth users increased the protocol’s market capitalization beyond $765 million, highlighting the project’s growing importance.
Today marks the launch of Pyth Network’s permissionless mainnet, ushering in a new era of token-based governance for the protocol.
Ecosystem participants can actively participate in Pyth governance by locking its $PYTH Tokens in the Pyth participation program to cast votes in the community… pic.twitter.com/KNmwWptD3K
– Pyth Network (@PythNetwork) November 20, 2023
As a first-party oracle for global financial data, Pyth Network provides access to over 300 real-time price data points across major asset classes, including stocks, ETFs, currencies, commodities and digital assets. It allows users to publish price data on-chain for seamless use in smart contracts by combining data from multiple providers, ensuring the creation of unified and trusted value.
The PYTH token serves as a tradable asset and governance mechanism for the protocol’s stakeholders. This major airdrop aligns with a notable trend of traditional institutions adopting decentralized technology, such as JP Morgan and Visa. The market valuation has decreased slightly to $542 million, which is still a commendable figure for the success of the project.
After its launch, the token started trading at 0.06, rose to 0.68, and then retreated to 0.28. It is currently trading at $0.35 at the time of writing. The project aims to gradually increase its token supply from 1.5 billion tokens in circulation currently to 10 billion over the next three years, with inflation incentives released every six months to decentralize governance.
Although there were 90,000 wallets eligible for the airdrop, only 35,000 have so far claimed their PYTH token. Token distribution will be open until February 18 for some Pyth users, including decentralized application (dapp) customers of the platform’s 27 integrated blockchains, nft holders, and administrators.
Pyth Network’s speed attracts attention
Pyth Network stands out for its remarkable speed, a quality that has contributed significantly to its appeal. Initially launched on the Solana blockchain, Pyth later developed its own dedicated chain called Pythnet. Network data is updated at impressively fast intervals, approximately every 400 milliseconds. By contrast, Pyth’s competitor Chainlink lags behind with update rates ranging from minutes to hours. Chainlink’s slowness in acquiring data is due to its dependence on third-party providers and node operators, causing delays.
Pyth’s exceptional speed has attracted great attention and anticipation, particularly in relation to its long-awaited airdrop. The project has attracted numerous people seeking to be part of this company. The desire to participate is driven in part by Pyth’s ability to provide real-time data and its potential impact on decentralized applications.
Backpack airdrops PYTH to 74,000 wallets for their enthusiasm
In response to the prevailing enthusiasm around the PYTH token, Backpack, a newly established cryptocurrency exchange, has revealed its intention to participate by airdropping PYTH tokens to users who have staked Solana in the past two days. Notably, the Backpack co-founder emphasized that the exchange has successfully airdropped an impressive 74,000 wallets as part of this initiative. He wrote:
“Hey @CoinDesk, @xNFT_Backpack reduced PYTH to 74,000 wallets today. Almost as much as all the on-chain claims portfolios.”
Pyth is currently the fourth largest oracle in terms of insured value, with a total market share close to 5%. The network provides external data to blockchains, allowing defi platforms to execute logic based on real-world events. Although the token fell to $0.35 after reaching an all-time high immediately after the launch, the significant support and interest of several people who got involved, as evidenced by its rapid capitalization increase, price increase, and massive participation, indicates that Many people are interested in the project. This can also be a good thing for the network.
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