Oracle data provider Pyth Network has announced the deployment of its pull oracle on Solana. This development promises enhanced reliability during network congestion and an increase in the number of price feeds available to users.
Traditionally, many oracle services have used the “push oracle” model. In this model, the oracle provider constantly sends data updates to each blockchain, which costs money for every transaction. This method is expensive and difficult to scale because it limits how often updates can occur and how many blockchains can be supported.
In comparison, Pyth Network’s pull oracle model changes the game by updating prices on the blockchain only when necessary. This approach significantly reduces the costs for oracle and data providers and allows for more frequent updates across a wider array of feeds and blockchains. Pyth achieves this by managing price updates off-chain. When an update is needed on-chain, it requires just a single user transaction, streamlining the process.
Up to now, Pyth has implemented the pull oracle model across its other blockchain integrations, except for Solana, which was still running on the traditional push model. Pyth will continue to offer the push oracle service on Solana until the end of June 2024; after that, only the pull oracle will be available.
Pyth dominates on Solana with an impressive 95% share of the total value secured (TVS).
In a broader market context, Pyth currently ranks 4th in TVS, holding a 9.41% market share. Chainlink continues to lead the space with nearly a 50% market share.
Although Pyth Network may not stand out in terms of total value secured, it excels in the number of protocols it secures, ranking second with 196 protocols, just behind Chainlink’s 395. This clearly indicates that the demand for its oracle data is quite high.
As Pyth continues to deliver financial data and sees growing demand from decentralized applications across various networks, its position in the market remains solid. The innovative pull oracle design not only meets current needs but also positions Pyth as a strong contender in the evolving oracle market, potentially challenging the market leader, Chainlink.
