Is PYTH The Next Chainlink?
Recently, PYTH secured a listing on Binance and its price surged above $0.50, leading to speculation that it could be a strong competitor to Chainlink. Let’s take a closer look at PYTH’s potential in the crypto market.
The Features of PYTH
PYTH is a decentralized oracle network that provides high-fidelity, sub-second, and cross-chain data feeds for smart contracts. It supports over 45 blockchains, 250 apps, and offers daily updates exceeding 80 million with a network of 400 data feeds.
Comparison with Chainlink
PYTH stands out from Chainlink in several ways. It relies on 1st-party data from major institutions like CBOE and Binance, potentially providing more accurate information. Additionally, PYTH updates its data every sub-second, offering real-time insights, while Chainlink lags behind with updates occurring every few seconds.
Challenges for PYTH
Despite its promise, PYTH lacks the established status enjoyed by Chainlink. Furthermore, only 15% of the total PYTH supply is currently in circulation, which could be a drawback for short traders.
Investment Considerations
While Chainlink has been dominant in the oracle space, PYTH positions itself as a notable competitor but comes with high risk. Investors should assess their risk appetite before making investment decisions.
Will PYTH Price Hit $1?
Analysts suggest that the price of PYTH is likely to rise. Limited circulating supply could fuel this price action; however, it could also be detrimental if short-sellers dominate the market. Some analysts predict that PYTH could hit $1.
Recent Price Movement
PYTH faced a rejection from the $0.50 level but is still trading close to that mark. If it surpasses and sustains that level, there are high chances of it reaching $1. The recent bearish turn may be due to massive liquidations and derivatives traders pulling out of PYTH after yesterday’s price surge.
Hot Take: PYTH Faces Competition as a Potential Chainlink Alternative
PYTH has emerged as a strong competitor to Chainlink after its listing on Binance. It offers unique features such as real-time data updates and reliance on 1st-party data from major institutions. However, PYTH still faces challenges due to its lack of established status and limited circulating supply. Investors should carefully consider the risks before investing in PYTH. Nevertheless, analysts predict that PYTH’s price could rise, potentially reaching $1. The recent bearish turn may be a result of profit realization by traders after yesterday’s surge. Overall, PYTH presents itself as a potential alternative to Chainlink in the oracle space.
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