$PYTH Airdrop Imminent: What Should the Fair Valuation Be?
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$PYTH Airdrop Imminent: What Should the Fair Valuation Be?
We are currently in a bull market, and given Pyth's future potential, a fair 2x premium is reasonable, around $0.27.
Navigating Web3 tides with focused insightsAuthor: hitesh.eth
Translation: TechFlow
$PYTH will be the next major launch following $TIA in recent times.
The pre-listing OTC trading price of $PYTH on Kucoin was $0.31.
After its official listing, can it maintain this price level?
Should you hold $PYTH long-term?
Let’s find out.
What is Pyth Network?
Pyth Network is a decentralized oracle network that provides real-time market data from over 40 blockchain networks, including cryptocurrencies, stocks, forex, and commodities.
Pyth vs Chainlink
Chainlink nodes fetch data from data providers and aggregate them, whereas in Pyth, data publishers run nodes and aggregate data to deliver accurate pricing.
Chainlink typically updates price feeds after several minutes—10 to 60 minutes for BTC/USD—while Pyth delivers real-time updates.
Pyth supports a cross-chain architecture and can scale across multiple blockchains and price feeds, as they’ve built a purpose-built blockchain, PythNet, dedicated to price publishing and aggregation activities.
Key Statistics
Total Value of Assets Secured by Protocols Served by the Oracle: $152 million
Total Number of Protocols: 120
Notable Users: Trading, Synthetix, Hashflow, Helium
Price Feeds: 373 (Note: Pyth uses a unique price feed model. For details, see: What is a Blockchain Oracle?)
Data Source: @DefiLlama
$PYTH Tokenomics
$PYTH will be used for governance, staking, and incentives. Data publishers will publish data sources and earn fees in return.
The maximum supply of $PYTH is 10 billion tokens, with 52% allocated to publishers and ecosystem development. At TGE, 1.5 billion tokens will be unlocked, with the remainder released at 6, 18, 30, and 42 months.
$PYTH Valuation
Chainlink currently has a 0.95x multiplier when comparing FDV to Total Secured Value (the total value of assets in protocols served by its oracle).
Applying the same metric, Pyth’s Total Secured Value is $1.52 billion, resulting in a fair FDV of 1.52B * 0.95, approximately $1.39 billion.
$PYTH will have a 15% circulating supply at TGE, giving it a market cap of $200 million and a fair price of $0.1333. Based on on-chain demand, any price above $0.1333 would indicate that $PYTH is overvalued.
However, we are currently in a bull market, and considering Pyth’s future potential, a 2x premium seems reasonable, bringing the fair price to around $0.27.
Personally, I would buy $PYTH below $0.20. If it trades above $0.50, I’d consider taking partial profits, especially if you received an airdrop.
In the long run, I believe Pyth Network has strong potential, and Pyth holds definite advantages over Chainlink that could capture significant market share.
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