Pyth Gears Up for $333 Million Token Release
The price of Pyth Network continues to experience pressure on Sunday as the significant token unlock date nears.
Pyth Network (PYTH), an oracle protocol that connects market data owners with applications across multiple blockchains, was trading at $0.150. This represents its lowest value since May 9 and a 72% decrease from its all-time high in November of last year.
The key factor influencing Pyth’s price will be a major token unlock scheduled for May 20. According to CMC, the network plans to release tokens worth $333 million, accounting for 58% of the total supply. In total, 5.66 billion tokens will be allocated for private sales, publisher rewards, ecosystem growth, and protocol development.
Pyth Network has a total supply cap of 10 billion tokens, with 36% currently available in circulation. The final two token unlocks are slated for May 2026 and May 2027.
Generally, a token unlock is considered a bearish influence on an asset as it increases the supply in the market. Without substantial investor demand, this can lead to a drop in price.
Pyth Network ranks as the third-largest oracle provider in the cryptocurrency landscape, holding a total value of $8.38 billion. The only providers larger than it are Chainlink (LINK) at $43 billion and Chronicle at $8.40 billion.
Pyth provides a range of services, such as price feeds, random number generation for smart contracts, and mechanisms to minimize miner extractable value (MEV). It is utilized by key players in decentralized finance, including Kamino Lend, Ethereal, Suilend, and NAVI Lending.
Pyth Network Price Analysis
The daily chart shows that the PYTH price peaked at $0.5540 in November last year before falling to $0.1557. It has now dropped below the key support level of $0.1697, which was both the peak in March and the lowest point in February.
Currently, the PYTH token remains under the critical threshold of $0.2210, the lowest level from August last year. It has also dipped below both the 50-day and 100-day Exponential Moving Averages, while the Relative Strength Index and other oscillators are showing downward trends.
The outlook for the PYTH price appears bearish. The next significant level to watch is $0.1042, its lowest point on April 7. A breakthrough above the resistance level at $0.2090 would counter this bearish outlook.