Crypto researchers saw the recent surge in PYTH prices and concluded that it posed a serious threat to Chainlink.
While Chainlink (LINK) has been the industry leader in Oracle, Pyth Network (PYTH) has been a formidable rival in recent times. Following its launch on Binance, PYTH’s price surged, putting LINK in competition. Analysts and cryptocurrency fans are even questioning if PYTH will replace Chainlink in the future.
Could Pyth be the Next Big Thing?
PYTH is highlighted in a new report by cryptocurrency analyst Wise Advice as it was able to get listed on Binance, which helped to push its price beyond $0.50. There is increasing conjecture that PYTH may provide a serious challenge to Chainlink, which has prompted a more thorough analysis of its prospects in the cryptocurrency space.
As a decentralised oracle network, PYTH markets itself as providing cross-chain, high-fidelity, sub-second data feeds that are optimised for smart contracts. With compatibility for more than 45 blockchains, 250 apps, daily updates more than 80 million, and a network of 400 data streams, the Pyth Network is a whole ecosystem.
PYTH is distinct from Chainlink in a number of ways. Pyth Network uses first-party data from significant organisations like CBOE and Binance, maybe offering more reliable information than Chainlink. Furthermore, Chainlink lags behind with updates happening every several seconds, but Pyth Network refreshes its data every sub-second, providing real-time insights.
Interestingly, PYTH places a strong emphasis on universal access, guaranteeing reliable performance across chains—a feature that Chainlink can not yet offer. But Wise Advice brought out certain issues that PYTH has to address. PYTH lacks Chainlink’s established standing, despite its potential. Furthermore, the fact that just 15% of the whole PYTH supply is presently in use might be detrimental since short sellers may take advantage of this fact.
Additionally, Wise Advice pointed out that Chainlink has long been the industry leader in the oracle field from an investment perspective. PYTH, however, presents itself as a serious rival despite the substantial risk involved. Therefore, before making any investing decisions, investors should evaluate their level of risk tolerance.
Is PYTH Going to Reach $1?
According to Wise Advice’s analysis, the price of PYTH is probably going to rise. Furthermore, a price movement like this might be fueled by the restricted supply in circulation, which could also be harmful if short sellers control the market. On the other hand, prominent cryptocurrency expert Crypto Ninja thinks PYTH may reach $1.
The analyst saw that buyers are retesting the $0.50 mark on the increasing volume in a post on X. If the price of PYTH maintains its resistance at $0.5, he said, there is a chance that it will rise to $1. In the meanwhile, he suggests traders set a stop loss at $0.4 in order to limit losses in the event that a negative trend develops.
On Saturday, the $0.50 mark, nevertheless, rejected the PYTH price. With a market valuation of $738.80 million, PYTH was trading 3.49% down at the time of publication, closing at $0.4918. Conversely, PYTH’s trading volume increased by 22.82% to $302.29 million.
Prior to this, it peaked at $0.5479 amid the announcement of the Binance listing. Furthermore, despite today’s bearish swing, PYTH’s 1-week returns represent for nearly 20% of total returns because of the huge gains this week. It is now trading about 25% behind the all-time high of $0.6544, which was reached in November 2023.
It’s also critical to remember that PYTH is still rather near to the $0.50 threshold. According to Crypto Ninja, there is a good probability that the cryptocurrency will reach $1 if it is able to break through that barrier and maintain it. The latest bear market collapse may have been brought on by large liquidations and the withdrawal of derivatives traders from PYTH. This may be the outcome of yesterday’s enormous price spike, which may have encouraged traders to cash in on their gains.
Coinglass data shows that in the last day, around $2 million worth of PYTH has been liquidated. $1.14 million worth of long bets were liquidated as a result. Furthermore, the PYTH open interest fell to $90.79 million, an 11.24% decline. Furthermore, Binance, which made $1.3 million, was responsible for the majority of these liquidations.
With over four years of immersive experience in the crypto industry, Nick is a seasoned crypto writer dedicated to unraveling the complexities of blockchain technology and decentralized finance.
He brings a unique blend of technical insight and communicative flair to the crypto space.
Having penned countless articles, analyses, and market reports, Nick has developed a distinctive voice that resonates with both seasoned investors and crypto newcomers alike.