Incentivized Staking and Airdrops Fuel PYTH Token Surge
The PYTH token’s resurgence above $0.50 is largely attributed to its incentivized staking model, attracting stakers with the promise of airdrop rewards from partners.
Since the PYTH airdrop, the token has experienced something of a rollercoaster ride. Initially trading at approximately $0.30, the token’s value surged past $0.50 before plummeting to $0.24. It has since rebounded, once again surpassing the 50-cent mark.
Interestingly, while some may attribute this recent surge to the token’s listing on multiple exchanges, including giants like Binance, this isn’t entirely the case. The primary catalyst for the token’s price increase seems to be the network’s innovative staking strategy, known as “incentivized staking.” The Pyth network stands out as one of the more pioneering projects to adopt this strategy, which rewards users with airdrops for staking their tokens.
As an oracle provider, Pyth has forged numerous partnerships across various ecosystems, many of which are with projects that have yet to issue their own tokens. These partnerships allow such projects to allocate a portion of their token supply to reward PYTH token stakers.
To date, Pyth has confirmed partnerships for airdrops with two projects, with more anticipated in the future.
One of the notable partners is Zeroland, a leading lending market on Layer 2 networks like zkSync and Manta, boasting a total market size of $26 million. The mechanism is straightforward: the more PYTH tokens you stake, the more points you earn, which will eventually be convertible into Zeroland tokens.
Another partnership is with Lyve Finance, a stablecoin initiative on the Linea platform, another Layer 2 roll-up. Lyve Finance also plans to distribute tokens to PYTH token stakers, further incentivizing participation in the staking program.
However, it is crucial to exercise caution, as numerous fraudulent airdrop links related to Pyth have emerged across social media platforms. To avoid falling prey to scams, stakeholders are urged to refer exclusively to the official Pyth network website for reliable information.
The allure of airdrop rewards has significantly impacted both the number of PYTH tokens staked and the total number of participants. Initially, in early January 2024, the influx of new stakers was modest (around 100 daily), but by the 20th of January, the number had skyrocketed to 22,000 new stakers in a single day. Although the daily number of new stakers has since decreased, it remains impressively high, with thousands joining daily.
Presently, the network boasts over 145,000 stakers and more than 845 million PYTH tokens staked, representing over half of the project’s circulating supply.
From a fundamental perspective, the project continues to expand its reach, having integrated more than 60 dApps into its price feed and added coverage for five further blockchains since our last update.
This foundational growth, coupled with the boost from the airdrop campaign, positions Pyth network for potential further expansion.
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