The cryptocurrency industry is going through a notable rally in the past couple of months and Bitcoin’s price is not the only testament to that.
One of the OG coins that absolutely exploded in value throughout the past three months is no other but Solana (SOL).
Take a look at this absolute monster of a chart:
From around $20 earlier in September, it’s now trading at just shy of $60, almost tripling in value for less than 90 days.
And I know crypto “investors” are used to getting everything immediately, but a 300% rally in 90 days is a lot, no matter who you ask.
But the more interesting bit is that Solana hosts an entire ecosystem, which currently holds some $600 million in total value locked. This is massive for a project that was deemed dead not so long ago.
Now that the negative impact of the FTX fallout seems to finally be behind us, many experts are incredibly bullish on SOL and its entire ecosystem.
And one project that has recently stood out, capturing the attention of the entire community, is Pyth Network (PYTH)
What is Pyth Network (PYTH)?
In essence, Pyth Network is a competitor of the more popular crypto project that’s been around for years - Chainlink (LINK).
Pyth Network is originally designed to be the best oracle provider on Solana, but it’s also built out into its own chain called Pythnet. Oh, and Pythnet also uses Solana technology.
According to its official website, the project sources information from first-party financial institutions. These supposedly include financial heavyweights like Binance, Jane Street, and so for.
Why is it needed, you may ask?
Well, say you want to build an application on Solana (or another network) that references the price of a cryptocurrency. So, for example, you want to build a lending app. To know the exact prices of various assets at any given time, you need a decentralized oracle that sources this otherwise external information (blockchains can’t communicate with the outside worlds outside of using oracle providers). That’s where Pyth Network comes into play - they will give you this information through a bunch of complicated integrations that neither you or me need to understand.
The essence is that you would need it, and in order to get it, you have to pay for it - duh.
What makes this coin interesting right now is that the Solana ecosystem is on the verge of recovery and many experts believe that it has a bright future ahead.
Therefore, it would make sense for developers to start building apps as this would be needed to satisfy the demand on the network. For these apps, they need oracles, and Pyth Network could then service this demand.
This is just the essence of the entire project and it’s being tremendously oversimplified, but if you want to check out more about it, please feel free to see the official website
The PYTH Token and its Tokenomics
To understand PYTH’s tokenomics, we once again turn to the official website, where a blog post describes them precisely.
The most important thing to consider here is that the token at a $500 million valuation (total market cap) as the team airdropped PYTH tokens to more than 90,000 wallets.
This is the vesting schedule:
And this is the token distribution as per the official whitepaper
Notably, 52% of the tokens are reserved for “ecosystem growth,” which represents a strategy aimed at advancing Pyth Protocol and incentivizing developers to build complementary tooling and resources.
How to Buy PYTH?
One of the easiest ways to buy PYTH if you believe it’s a token that will perform well during the next bull market, is through MEXC.
MEXC has been the leading altcoin exchange for many years now. It has a very comprehensive user interface, it has never been exploited, and it offers a ton of trading options - spot, perpetuals, and whatnot. MEXC is also a top exchange by means of trading volume, meaning there will be more than enough liquidity for you to carry out your orders. It also supports the highest number of altcoins on the market.
You can also trade PYTH with leverage on MEXC, although this carries a significant risk of capital loss.
Using our affiliate links will give you a discount on trading fees on both spot and futures, and it helps us tremendously to produce more content like that.
You can open an account on MEXC quickly and easily using this link
Thank you all for reading and let us know what your thoughts are in the comments below!
Disclaimer: None of the above is financial advice. The content is for entertainment purposes only, and it doesn't solicit any investment decisions. Investing in cryptocurrencies carries a tremendous risk of capital loss, and you should consult with a professional before making any investment decisions that may or may not be related to this article.
