Written by: hitesh.eth
Compiled by: TechFlow
$PYTH will be another major release after $TIA in the near future.
$PYTH was trading at $0.31 OTC before its listing on Kucoin.
Can it maintain this price level after it is officially launched?
Should you hold $PYTH for the long term?
Let’s find out.
What is the Python Network?
Pyth Network is a decentralized oracle network that provides real-time market data from over 40 blockchain networks, including cryptocurrencies, stocks, forex, and commodities.
Pyth vs Chainlink
Chainlink nodes fetch data from data providers and aggregate them, whereas in Pyth, data publishers run nodes and aggregate data to provide accurate prices.
ChainLink usually updates price feed data after a few minutes, 10-60 minutes for BTC/USD, while Pyth updates data in real time.
Pyth supports cross-chain architecture and can scale to multiple blockchains and price feeds as they built an application-specific blockchain, PythNet, for price publishing and aggregation related activities.
Key statistics
Total value of assets in protocols served by oracles: $152 million
Total number of protocols: 120
Popular users: Trading, Sythetix, Hashflow, Helium
Price Feeds: 373 (Note: Pyth uses a unique price feed model, for details, see: What is a blockchain oracle?)
Data source: @DefiLlama
$PYTH Token Economics
$PYTH will be used for governance, staking, and incentives. Data publishers will publish data sources and earn fees in exchange.
$PYTH has a maximum supply of 10 billion, with 52% of the supply allocated to issuers and ecosystem development. 1.5 billion tokens will be unlocked during the TGE, and the remaining supply will be unlocked after 6, 18, 30, and 42 months.
$PYTH Valuation
Chainlink’s current FDV is at a 0.95% discount to the Total Secured Value (the total value of assets in the protocols its oracles serve).
If we consider the same metric, Pyth’s total guaranteed value is $1.52B, so the fair FDV is 1.52B * 0.95, or about $1.39B.
$PYTH will have 15% of the circulating supply in the TGE, which would give it a market cap of $200 million and a fair price of $0.1333. Prices above $0.1333 would make $PYTH overvalued based on on-chain demand.
But we are in a bull market now, considering the future potential of Pyth. Therefore, a fair 2x premium is reasonable, about $0.27.
I would personally buy $PYTH at prices below $0.20 and if it trades above $0.50 then I think it would be worthwhile to consider taking some profits if you have the short drop.
In the long run, I think Pyth Network has good potential, and Pyth definitely has some advantages over Chainlink to capture a good market share.