Despite starting the day on a decline, Pyth Network (PYTH) has regained and is currently trading 20% higher over the past 24 hours.
Today’s price swing was influenced by a major token unlock and the release of a new LISUSD/USD price feed.
Pyth Network (PYTH) token unlock
In the morning, PYTH price experienced a significant price dump due to a voluminous token unlock event. The token dropped to a low of $0.3552 before resurging.
Data from tokenunlocks.app shows that the Pyth Network unlocked $935.52 million worth of tokens (2.13 billion PYTH tokens) on 19 May at 2:00 PM UTC as part of a cliff unlocks event.
This massive token release translates to 141.67% of the network’s circulating supply, dramatically increasing the number of tokens available for trading.
Historically, token unlocks typically serve as bearish catalysts, leading to increased selling pressure and downward price movements. The sudden surge in supply, if not met with sufficient demand, can result in sellers outnumbering buyers, causing a price drop.
However, some analysts, including DeFi Scholar on X predicted that the impact of this token unlock would not be as severe.
DeFi Scholar argued that the token allocation indicates many of the unlocked tokens will not be immediately sold for early gains but will instead be used for publisher awards, ecosystem growth, protocol development, and private sales.
True to the predictions, PYTH bulls capitalized on buying the dip; driving the price correction.
Pyth Network lisUSD/USD price feed
Adding to the day’s events, Pyth Network also released its new LISUSD/USD price feed.
The feed is designed for lisUSD, a decentralized, unbiased, collateral-backed stablecoin soft-pegged to the US Dollar by Lista DAO.
The LISUSD/USD price feed is now available on more than 55 blockchains, enhancing the utility and accessibility of lisUSD across the blockchain ecosystem.
By providing accurate and decentralized pricing data, the LISUSD/USD price feed bolsters the integrity and functionality of lisUSD.
Following the release, Pyth Network (PYTH) token saw its market value rise by 12.2% to $0.449, with trading volume soaring to $589,188,357.06 over a 24-hour period, indicating heightened investor interest and market activity.
At press time, the token had surged further to $0.455.
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