If you missed #TIA, #LINK and #MANTA, at least don't miss #PYTH. Why this project can become a gold mine and how it is similar to market leaders will be discussed in this article.
Description of the PYTH Network project
Pyth is a SOL network protocol that allows market participants to publish price information on the chain for others to benefit from. The project performs the function of an oracle and works in the RWA category. The main competitor is #LINK
Product Market Fit 9 / 10
The project plays the role of Oracle and solves the problem of delivering price data for crypto applications. Essentially, it is a platform where Publishers (data providers) and Consumers (data buyers) meet. Pure B2B sector. The understandable sector of the crypto-economy is a strong competitor in the form of LINK.
INVESTORS 8 / 10
The project has good Tier 1 level investors. Among them are Multicoin Capital (+946% ROI), Delphi Digital (+1200% ROI). But there are also level 3 and 5 funds, so only 8.
UTILITY 10 / 10
The $PYTH token is used by Publishers to publish data, to pay data fees by Consumers, for staking by Delegators, to pay network fees and voting fees.
Also, the marketing strategy for entering the market encourages the community to stake the token in order to receive valuable drops (more on this at the end of the article).
NARRATIVE 9 / 10
The project works in the RWA niche, which is now gaining momentum. Kucoin forecasts the sector to grow to $16 trillion by 2030.
TEAM 9 / 10
Project CEO Michael Cahill has extensive experience working with the real financial sector. Before joining Crypto, he worked at Cboe Global Markets and KCG Holdings, Inc. exchanges. Has extensive experience in sales of financial instruments. The CTO and COO of the project as well as co-founders left JumpTrading (Chicago trading company, 1000+ employees).
FUNDAMENTAL 10 / 10
Today the project has 70,674 daily active users, 39 publishers and 129 data consumers. The number of token stakers is 126,758. More than 2 million interactions with protocols per day. The growth dynamics are positive.
The total number of transactions on the network is growing and now amounts to more than 4.5 million
SOCIAL 9 / 10
The project has 166K subscribers in X, which is not very much for such a project, but the account rating is 222, which is very good. This indicates the attention to the project from people well-versed in crypto.
Requests in YT 63K (average hype level). Traffic on the site is 1.3M (very high).
Overall rating: 8.85
Project conclusions and price forecast PYTH Network
The project is very young, entered the market at the end of 2023 and is already showing good dynamics of market capture.
This indicates a capitalization of FDV of 3.83 billion. The closest competitor LINK has FDV of 14 billion. That is there is a fairly good upside in terms of growth if the project manages to capture market share.
However, given that it operates primarily on the SOL network, its success will depend on the development of the Solana blockchain. Although Solana has shown x10 over the past six months, I think the potential of SOL is still not exhausted. In the last bullrun we saw FDV of $146.54 billion, so Solana can still show at least x3.
In addition to good fundamentals and prospects for capitalization growth, the PYTH project is also interesting from a marketing point of view. The team follows the path of the Celestia project and uses its token to reward staking by distributing tokens for projects that will be launched on the PYTH network in the future. And the projects will be quite good 👇
An increase in the number of users staking PYTH tokens + a decrease in the number of tokens on exchanges suggests that the market has recognized this layout strategy and is actively using it.
The main question is whether PYTH will be able to bypass or at least catch up with LINK in capitalization?
I think the capitalization ratio will continue. LINK dominates the ETH network, and PYTH is firmly entrenched in the SOL network. The FDV of both projects will gradually increase as the entire market grows.
What will the price of PYTH be in the near future?
To analyze the price of a token in the short term, it is important to look at the tokenomics of the project.
The next token distribution will take place only in May 2024, so it is very reasonable to enter this project now at least until May to get juicy drops. If PYTH nevertheless catches up with LINK in capitalization, then, according to the FDV valuation model, its price will be $3.80 per coin.
However, if we estimate the maximum price of this token at the end of the 2025 bull cycle, it is important to consider that by November 2025, 5.3 billion tokens will enter the market. Taking this into account, the maximum price increase from current values will be +250%
What am I planning to do
PYTH Network is included in my x100AAA list, which I talk about in my telegram channel Cautious Investor (search cryptosei4). Personally, I plan to invest 2-3% of my portfolio in this project.
I'm NOT expecting big X's from him, he's more interesting in terms of getting drops. In it, I plan to hold some part of the portfolio until May, receive drops, and then pour liquidity into new coins, the listing of which I expect during 2024.
Most of the cycle-defining alts from the last launch appeared in the months before and several months after the halving. Now is the golden time for new big names to enter the crypto market.
If the article was useful to you, please like and share it on social media. networks, it will probably be useful to your friends too.
I also recommend looking at these articles:
Universal portfolio strategy for investing in the market 2024-2025
Investment strategy that can make you a millionaire in 2024 - 202