Pyth's Blazing $77M Token Airdrop Cements Status as Chainlink Challenger

Pyth’s Blazing $77M Token Airdrop Cements Status as Chainlink Challenger

UTC by Temitope Olatunji · 3 min read
Pyth’s Blazing $77M Token Airdrop Cements Status as Chainlink Challenger
Photo: Unsplash

Pyth Network’s exceptional refresh rate speed sets it apart and significantly adds to its appeal, surpassing that of its competitor – Chainlink.

Pyth Network, a decentralized finance (DeFi) oracle service competing with Chainlink, made headlines this week with a remarkable token airdrop valued at an astounding $77 million. The distribution of 250 million PYTH tokens to early Pyth users increased the protocol’s market capitalization beyond $765 million, highlighting the project’s growing importance.

As a first-party oracle for global financial data, Pyth Network provides access to over 300 real-time price data points across major asset classes, including equities, ETFs, forex, commodities, and digital assets. It allows users to publish on-chain price data for seamless use in smart contracts by combining data from various providers, ensuring the creation of a unified and dependable value.

The PYTH token serves as a tradable asset as well as a governance mechanism for protocol stakeholders. This significant airdrop aligns with a notable trend of traditional institutions embracing decentralized technology, such as JP Morgan and Visa. The market valuation has now dropped slightly to $542 million, which remains a commendable figure for the project’s success.

Following its launch, the token began trading at 0.06, surged to 0.68, and then retraced to 0.28. It is currently trading at $0.35 at the time of writing. The project intends to gradually increase its token supply from 1.5 billion currently circulating tokens to 10 billion over the next three years, with inflation incentives released every six months to decentralize governance.

Although there were 90,000 eligible wallets for the airdrop, only 35,000 have claimed their PYTH token so far. The token distribution will be open until February 18 for some Pyth users, including decentralized app (dapp) customers from the platform’s 27 integrated blockchains, NFT holders, and administrators.

Pyth Network’s Speed Drives Attention

Pyth Network stands out due to its remarkable speed, a quality that has significantly contributed to its appeal. Initially launched on the Solana blockchain, Pyth later developed its own dedicated chain called Pythnet. The network’s data feeds refresh at impressively rapid intervals, approximately every 400 milliseconds. In contrast, Pyth’s competitor, Chainlink, lags behind with refresh rates extending from minutes to hours. Chainlink’s sluggishness in acquiring data stems from its reliance on third-party providers and node operators, resulting in delays.

The exceptional speed of Pyth has garnered substantial attention and anticipation, particularly in relation to its highly awaited airdrop. The project has attracted numerous individuals seeking to become part of this venture. The desire to participate is partly fueled by Pyth’s ability to provide real-time data and its potential impact on decentralized applications.

Backpack Airdrops PYTH to 74,000 Wallets for Their Enthusiasm

In response to the prevailing enthusiasm surrounding the PYTH token, Backpack, a recently established cryptocurrency exchange, has revealed its intention to participate by conducting an airdrop of PYTH tokens to users who have staked Solana within the past two days. Notably, the co-founder of Backpack emphasized that the exchange has successfully executed the airdrop to an impressive 74,000 wallets as part of this initiative. He wrote:

“Hi @CoinDesk, @xNFT_Backpack dropped PYTH to 74,000 wallets today. Almost as much as all the on-chain claim wallets.”

Pyth is currently the fourth largest oracle in terms of value secured, with a total market share of close to 5%. The network provides external data to blockchains, allowing defi platforms to run logic based on real-world events. Although the token dropped to $0.35 after reaching an all-time high immediately after launch, the significant support and interest from various people who got involved, as evidenced by its rapid rise in capitalization, price rise, and massive participation, indicates that many people are interested in the project. This can also be a good thing for the network.

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