Pyth Network Launches Token, Challenging Chainlink in Oracle Arena

Pyth Network is distributing 250 million tokens to its community, worth approximately $87 million. With over 230 dApps integrated and expansion to over 40 blockchains, Pyth is shaping up as a major player in the blockchain oracle space.

Alexander Mardar

Nov 22, 2023 - 2 min read

Pyth Network, a blockchain oracle solution, has marked a significant milestone by launching its own token. It plans to distribute about 250 million tokens, worth approximately $87 million, to its community members. This initiative positions Pyth Network as a formidable competitor to Chainlink, challenging its dominance in the blockchain oracle space.

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Blockchain oracles serve as crucial links between blockchains and external systems, allowing smart contracts to operate based on real-world information. This connection is vital for integrating the Web3 ecosystem with existing Web 2.0 systems and data sources.

Since its establishment in 2021, Pyth Network has focused on providing data solutions specifically for protocols on the Solana network. This targeted approach has rapidly propelled it to the forefront as the premier oracle provider on Solana, gaining significant traction and recognition.

In terms of technology, Pyth Network’s unique methodology has been a game-changer. In contrast to Chainlink and other oracle services that rely on data aggregators like CoinGecko and CoinMarketCap, Pyth Network procures its data directly from first-party sources. This model includes a diverse range of contributors, from well-known crypto entities such as Amber and Wintermute to established traditional finance firms like Jane Street and Cboe.

This direct sourcing method has been instrumental in enabling Pyth Network to offer high-quality, low-latency price data, a vital component for decentralized derivatives protocols. Pyth’s oracles have facilitated the creation of unique derivatives exchanges on Solana, such as Mango Markets, Zeta, and 01.

The project currently supports over 90 data providers and boasts integrations with more than 230 dApps, along with providing over 380 price feeds. Additionally, it has expanded beyond the Solana ecosystem, now offering low-latency data for over 40 different blockchains.

To facilitate this expansion, Pyth introduced its proprietary chain, Pythnet. While Pythnet functions similarly to Pyth on Solana for data providers, it adopts a different approach for consumers. Instead of pushing price updates on-chain as done on Solana, Pythnet relies on Wormhole for relaying cross-chain messages. This significantly expands the number of chains the project can work with.

For users interested in engaging with Pyth Network, the airdrop on the project’s website offers an opportunity. Eligibility extends to those active in the Solana or the wider DeFi ecosystem, including users who have staked Solana on the Backpack exchange. So far, about 132 million of the 250 million allocated PYTH tokens have been claimed, representing roughly 52% of the total, with around 39,000 wallet holders taking part in the airdrop.