What is Pyth Network (PYTH)?

An Introduction to Pyth Network

The digital assets market consists of hundreds of thousands of smart contracts, all with different use cases such as Decentralized Finance (DeFi). Most of these smart contracts need data to execute their functions and this data is provided by oracles. These oracles are information reliers that bridge data from the external world to the market and vice versa. These oracles are a crucial component of the market as they must require high-quality data and reliably otherwise the smart contracts might execute the wrong task. 

Pyth Networks aims to provide this reliable data for DeFi protocols by providing high-quality, low-latency price data for various assets, such as cryptocurrencies, equities, forex, and commodities, in a decentralized and trustless way.
 

Solution provided by Pyth

Pyth Network provides this data through a network of multiple trusted sources such as financial institutions, market makers, and digital assets exchanges. These firms include Jane Street, Wintermute, and Hudson River Trading, overall Pyth has 117 data providers. With this data, Pyth offers four unique products: Price Feeds, Benchmarks, Entropy, and Express Relay. 

Price feeds provide real-time verified data for smart contracts, ensuring that accurate, granular, and resistant to manipulation. The benchmark product allows protocols to retrieve historical data from any Pyth feed which then can be used for a variety of use cases.

Entropy allows developers to build secure smart contracts as it will generate cryptographically random outcomes, this is especially useful for on-chain lotteries or gambling products or liquidation actions. This ensures that these aspects occur fairly and prevent manipulation. Lastly, express relay aims to eliminate Maximum Extractable Value (MEV) by directly delivering data to smart contracts in a way that bypasses the mempool, where front-running and other forms of MEV commonly occur. 
 

Technology behind Pyth

The biggest technology behind Pyth is its Pull method. Most oracles in the digital asset space operate using a “push” model, where the oracle continuously sends price updates on-chain. Pyth, however, uses a "pull" model that delegates the process of submitting price updates to the users. Pyth’s price updates are created on Pythnet and broadcast via Wormhole, but any user can submit these updates to the Pyth on-chain program.

This permissionless method allows any user to update the price on-chain by submitting a valid Wormhole message. Typically, users will submit a single transaction that both updates the price and uses it in a downstream application, ensuring a seamless integration of price data into the broader DeFi ecosystem. Pyth has other interesting technologies implemented, you can read more about this in our free Pyth Network report which can be accessed through the button below. 

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Pyth’s Ecosystem

As oracles are a crucial part of the digital assets ecosystem, Pyth has built a widespread ecosystem of interesting partners. One we have mentioned before is the data providers, these range from digital assets exchanges such as Binance, to market makers such as IMC, to quantitative makers such as Jump Trading. Besides data providers, Pyth also has a wide range of users, consumers include traditional firms TradingView and Cboe Global Markets but also a wide variety of digital assets firms located in services such as AI, derivatives, borrowing-lending, asset management, Dex aggregators, and many more. 

Overall, Pyth supplies data to more than 410 applications with over 500 data feeds across 75+ blockchains—an impressive feat for a protocol founded in 2021. Despite being a relatively new player in the oracles market, Pyth has experienced rapid growth, both in terms of total value secured and the number of assets it supports in smart contracts. In 2024, its market share increased from around 4% to 9%, securing over $4 billion in value.

Pyth News

On the 23rd of September, Pyth Network launched its Oracle Integrity Staking to incentivize high-quality price feeds. By coordinating publisher and staker incentives with Pyth's security and data quality objectives, Oracle Integrity Staking improves the precision and dependability of Pyth Price Feeds. Oracle Integrity Staking gives developers more assurance in the data they use, allowing them to create without worrying about data security and integrity. Oracle Integrity Staking makes that publishers and stakers are motivated to uphold high data standards, therefore directly rewarding data integrity and performance.

Pyth Price

After a prolonged period of consolidation since June, PYTH has shown a decisive breakout from the range in November, which is often viewed as a bullish reversal signal. The price reclaimed the strong resistance level around $0.40, a key support level and psychological barrier, and successfully retested it. Currently, PYTH is expanding upwards and has reached its first mid-range target and area of resistance around $0.51, where a reclaim above these levels opens up the potential of further continuation towards the next resistance area near $0.74. The bullish momentum in price action is further emphasized on the smaller timeframes, where PYTH continues to form higher highs and higher lows. 

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