Discover PYTH on the Pyth Network: A Real-Time Blockchain Oracle for Market Data

Modified on Tue, 23 Sep at 5:39 PM


What is Pyth Network?

Pyth Network is a data oracle that connects real-world financial market data to decentralized finance (DeFi) applications. It provides a public, decentralized platform for publishing financial data. Pyth is supported by over 100 data publishers, 350+ protocols, and trusted by 80+ blockchains.

Pyth Network offers several products for developers:

  • Price Feeds: Provides real-time prices for over 500 digital assets on more than 80 blockchains, including Solana, many EVM-compatible chains, Aptos, Sui, NEAR, and Cosmos.
  • Pyth Benchmarks: Allows users to look up historical prices from the Price Feeds. For example, an application can retrieve the price of BTC/USD from last Friday at 8:00 AM UTC. These prices can be used to settle contracts or for other applications that require historical price data.
  • Express Relay: A priority auction that allows protocols to extract the maximum value from mining or network validators by ordering transactions (MEV).
  • Entropy: Allows developers to quickly and easily generate secure random numbers on the blockchain. Entropy enables the creation of applications like NFT minting and games with responsive UX. It also ensures strong security to give both users and application developers confidence that the results are random.


Pyth Network Development


Pyth Network was developed in an incubator program run by Jump Crypto, a part of Jump Crypto Group, a large trading firm headquartered in Chicago. This origin in traditional finance (TradFi) fostered relationships for the project that pull in real-world data.


The team behind Pyth was established by Douro Labs in 2023 to oversee the project's development. Douro is based in Porto, Portugal and is led by Michael Cahill (CEO), Ciarán Cronin (COO), and Jayant Krishnamurthy (CTO). All three have experience working at Jump, along with diverse backgrounds in finance and software engineering.


Source: Douro Labs Twitter


Pyth has raised funding from major players in both TradFi and crypto, including Jump Trading, Virtu Financial, Multicoin Capital, CoinShares, and the now-defunct FTX and Alameda Research.


Pyth launched as a protocol on the Solana network in April 2021 and had almost 100 data providers by December 2023. One of the first data providers was Bitstamp, which joined in 2021.


In March 2024, Pyth had a Total Value Secured (TVL) of over $5 billion, representing almost 10% of the Oracle network market alongside projects like Chainlink and Chronicle. At that time, Pyth also accounted for almost 10% of transactions on the Solana network. Later in 2023 and 2024, the development team focused on making Pyth cross-chain, adding support for Arbitrum, Avalanche, Hedera, and many other blockchains.


Pyth Network's Strengths: Becoming a Leading Blockchain Oracle



Pyth Network has three main strengths that address the limitations of traditional oracles, focusing on speed, coverage, and data sourcing/quality:

  • Low Latency and High Frequency: Traditional oracles suffer from slow update times. Pyth Network updates each Pyth Price Feed multiple times per second, ensuring that decentralized applications can access off-chain prices with every transaction.
  • Cross-Chain Availability of Price Feeds: Pyth's technical capabilities allow it to scale to support thousands of transactions and cost-effectively operate on the Solana network. This makes Pyth Price Feeds accessible on any blockchain that Pyth supports. This approach eliminates the need for individual deployments on each network, making Pyth an attractive oracle for launching new data feeds. It supports over 80 blockchains at the time of writing.
  • High-Fidelity, Accurate, and Transparent Data: By focusing on "first-party" data, Pyth ensures accurate price data because data providers actively participate in price discovery. The transparency of Pyth Network's aggregation mechanism allows users to trace each data point back to the publisher's public key. This transparency, combined with the reputational alignment of data providers, reduces the risk of unfair manipulation.


The PYTH Token

PYTH is the governance token of the Pyth Network and the Pyth DAO. The governance framework details the rules and procedures of the Pyth DAO. Generally, these rules and procedures are enforced through on-chain contracts and associated parameters, except where specified by the Pyth DAO for off-chain actions.

Scope of Governance and the Pyth DAO

As outlined in the published documentation, Pyth governance can help define high-level parameters of network mechanisms. The on-chain governance approach is expected to pass responsibility for various decisions and actions, such as:

  • Setting price update fee pricing.
  • Defining reward distribution mechanisms for data providers.
  • Approving other software updates to on-chain programs across blockchains.
  • Determining which new symbols (Feeds) to list on Pyth and data references like the number of decimal places in prices.
  • Defining how data providers are permitted to provide data for price feeds.


PYTH Token Distribution

  • Max Supply: 10,000,000,000 PYTH
  • Initial Circulating Supply: 1,500,000,000 (15%)
  • Vesting: 85% of PYTH tokens were initially locked, with those tokens unlocking in stages at 6, 18, 30, and 42 months after the initial token launch.


Source: Token Distribution



  • Publisher Rewards (22%): This portion is dedicated to those responsible for publishing price data to the Pyth protocol. It includes tokens reserved for reward mechanisms and grant programs to incentivize publishers to provide accurate and timely price data.
  • Ecosystem Growth (52%): This large allocation is for "ecosystem growth." It's a strategic reserve of tokens allocated to those who contribute to the Pyth network, including developers, educators, researchers, strategic partners, early publishers, and more.
  • Protocol Development (10%): This part of the token supply is allocated to core contributors focused on building the tools, products, and infrastructure of the Oracle to expand the protocol's decentralized data services. This includes Douro Labs.
  • Community and Launch (6%): This portion of PYTH tokens is set aside for the initial launch phase and related events and initiatives.
  • Private Sales (10%): These tokens were for fundraising rounds. This helped bring value to the network in terms of providing guidance and infrastructure support.



Interesting Price Information for PYTH




According to CoinMarketCap data as of 10 February 2025, the PYTH coin has a market capitalization of $711,007,792 USD, or approximately 24,085,033,475 THB.

At the time of writing this article, PYTH is trading at approximately $0.1962 USD, or about 6.64 THB per PYTH. The coin previously reached its all-time high (ATH) of $1.15 USD, or 38.97 THB per PYTH, on 16 March 2024.


References

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