Pyth Network Faces Pressure as Major Token Unlock Looms
On Sunday, the Pyth Network (PYTH) price faced downward pressure. The oracle protocol, which connects market data owners to various blockchain applications, traded at $0.150,its lowest since May 9. This represents a 72% drop from its peak in November.
The primary reason for this decline is a significant token unlock set for May 20. This event will release tokens worth $333 million, or 58% of the current float. This unlock includes 5.66 billion tokens, allocated for private sales, publisher rewards, and development.The networkâs price is down 72% from its November high.
Pyth Network is the third-largest oracle provider, securing $8.38 billion. The upcoming unlock could further impact the price. The network has a maximum supply of 10 billion tokens, with 36% currently in circulation.After May 20, two more unlocks are planned for 2026 and 2027. Token unlocks often cause price drops due to increased supply. The market worries about a potential oversupply, which could depress the price if demand doesnât match the influx. The unlock includes tokens for sales, rewards, and development.
Pyth Network is a top oracle provider, securing $8.38 billion. It offers price feeds, random numbers for smart contracts, and tools to reduce miner extractable value (MEV). Major DeFi platforms like Kamino lend and Ethereal use it.
The PYTH price has fallen below key support levels. Itâs now below the 50-day and 100-day exponential Moving Averages. The outlook is bearish, with the next key level at $0.1042. A rise above $0.2090 would change this view.
