PYTH Analysis & Market Overview

Sypool Protocol
5 min readDec 1, 2023

1. Project Overview

Pyth Network is a next-generation price oracle solution that aims to make valuable financial market data available on-chain for projects and protocols, as well as for the general public, via blockchain technology. The network aggregates first-party price data from a broad group of over 70 trusted data providers and publishes it for consumption by smart contracts and other on- or off-chain applications.

2. Fundamental Analysis

The total supply of PYTH is 10,000,000,000. tokens, with a circulating supply of 1,500,000,000 tokens, accounting for 15% of circulation. The 24-hour trading volume represents 12%, which is considered Normal.

As an oracle protocol, the TVS of PYTH ranks fourth, with 124 deployed protocols, just behind Chainlink, the leader in oracles. Such data is excellent.

3. Token Information

4. Ownership Distribution

Judging from the ownership distribution on Solscan, the proportion of transactions is not high. However, the top 30 addresses account for 96.2%, of which the first 3 addresses account for 43%. The concentration is high.

5. Major Holders

Address #1

Three PYTH transactions occurred under this address, and after a simple test, 2.5b PYTH were transferred. The main asset of this address is PYTH. The only transaction with this address is address #2. Based on the behavior of address #2, we infer that address #1 may have obtained PYTH through airdrops or is the address of the PYTH project.

Address #2

This address initially received an inflow of 10b PYTH, and then mainly outflowed PYTH, and the amount of outflow was regular. It can basically be determined to be the airdrop address of PYTH.

Address #3

This address is close to address #1. 1.3b of PYTH was also transferred after the account test. The asset allocation mainly consists of PYTH, so the address may have been airdropped or used by the project to store PYTH.

We can see that the top 3 addresses with the largest proportion may all be related to the project, and the possibility of all selling off in the short term is small.

6. Position Distribution

2023 Position Distribution

PYTH was recently listed on the exchange. We can see that apart from the current price range, the upper position distribution is around 0.4751.

7. Contract Data

Real-time Long/Short Ratio (24h)

Coinglass reports a real-time long/short ratio of 0.82, indicating a balanced market with a silent bearish sentiment.

Contract Trading on Binance

Binance is currently the largest platform for PYTH contract trading. The long/short ratio leans towards the bullish side.

8. Summary

  1. Judging from the long-short ratio, in the short term, the market is more bearish on PYTH.
  2. In the medium term, we can see from the ownership distribution that concentration is high, but after excluding the project and observing the behavior of whales, the possibility of large-scale selling in a short period of time is low. And the number of PYTH airdrops this time accounts for 6%, which is not much.
  3. In the long term, it can be seen that the number of protocols using PYTH ranks second only to the leader Chainlink. Most of them are popular protocols and have advantages in long-term development.

Disclaimer:

This analysis is provided for informational purposes only and should not be construed as financial advice or a recommendation to buy, sell, or hold any cryptocurrency or investment product. Cryptocurrency markets are highly volatile, and the value of tokens can fluctuate significantly in a short period.

Investors should conduct thorough research and consider their risk tolerance before making any investment decisions. The information presented in this report is based on available data and market trends, and subsequent developments may impact the analysis.

The analysis relies on data from various sources, including blockchain explorers, exchanges, and news outlets. While efforts have been made to ensure the accuracy of the information, there may be unforeseen risks or events not accounted for in this report.

It is crucial to note that past performance is not indicative of future results, and the cryptocurrency market is subject to regulatory changes, technological developments, and macroeconomic factors that can influence prices and market dynamics.

Readers are encouraged to consult with financial professionals and conduct independent research before making any investment decisions. The author and Sypool disclaim any liability for financial losses or damages arising from the use of this analysis or reliance on its content.

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