Pyth Network (PYTH) has recently been on an uptrend with the token increasing by 3. It has plummeted to its current price by23% thus it’s value has dropped significantly. 2581. With a current position of 62 of the market cap, Pyth Network’s market cap has dropped to as low as $935. 48 million, so there is the data which shows a slight decrease within the last 24 months. This reduction in price followed by a noteworthy increase in volumes of activity calls for an analysis of factors affecting Pyth Network.

One key feature that can be observed in the current market behavior of Pyth Network is a sharp rise of the trading volumes. In the last one day, the trading was recorded to have increased by 88 percent. 15%, reaching approximately $27. 49 million. The volume to market capitalization ratio currently is 2. 94% which is comparatively much higher than most of the stocks engaged in trading related to their market capitalization. Such a significant spike in trading volume can mean a number of things including higher interest in the coins or more speculation in the market or new activities related to the Pyth Network.

Today, circulating supply of PYTH Network is 3,624,988,811 PYTH out of nearly ten billion PYTH that the platform has in circulation. Hence, the total supply can change, depending on the project’s- tokenomics and future developments by the founders of the project with no upper limit of the supply. The current circulation account for 36 percent of the total supply available in market. To fully assess the current and future value of HUM, let’s take a closer look at distribution currently 25% of the total token supply according to the roadmap has not been even launched. In fact, the current circulating supply is a little over 20% of the total supply which implies that there is still room for dilution in the near future and this has great influence on the price of the token.

The market cap at the interest of fully diluted of Pyth Network is $2. 58 billion, will be equal to market capitalization if almost entire total supply of almost 10 billion PYTH is in circulation. The variation between fully diluted and current market caps reflects on the proportions for expansion of the market cap, but the threat posed by dilution in the event that many tokens are issued into the market without an accordance market demand. This suggests that investors should consider the possible dilution, as they assess the company’s value proposition in the long run of Pyth Network.

There are some reasons that could be attributed to the recent down plunge of Pyth Network. Market trends and larger economic factors superimpose a considerable impact on the performance of any specific crypto currency. Cryptocurrencies are generally affected by volatility which is quite common in the market and unfortunately for Pyth Network its value is indeed volatile and is affected by these larger market forces. This means that the general sentiment of investors, changes in regulations or even conditions in the global economy will directly affect the price of the tokens.

Another set of factors that bear influence on Pyth Network’s operations include project specific factors. Considering the fact that Pyth Network is a decentralized data oracle network, the platform’s success depends on its efficiency in delivering accurate data feeds to DeFi platforms. Investors pay close attention to any development, collaboration or other updates on development of Pyth Network platform. On the other hand, the recent drop in price may be attributed to a host of factors such as, delays, competition from other data oracle providers or negative news in the market.

But looking at traded volumes, they have risen dramatically, coupled with a relatively small circulating supply, meaning that Pyth Network is probably more active in the current market. This could be investor<|reserved_special_token_260|> news speculation or informative triggers that have short term fluctuations in the price. It can be seen that though trading volume has slightly declined with the price drop, it is still not a fall as violently as the token price, and hence it can be assumed that trading is indeed still active with the token which may be due to recent events that have taken place or due to some trend change regarding cryptocurrency trading.

In conclusion, the current crisis understood by Pyth Network as a strategic shift of the company’s focus on the telecommunication industry has put its existence at risk 3. Strack (2015) use price as their measure of performance and their finding appears to be driven by both market forces and project specific effects estimated to be around a 23% decline.

The trading volumes skyrocket and with it, there is more market interest in the cryptocurrency; the circulating supply is also moderate and this factor can cause the price to fluctuate. This volatility can to a degree be countered with market analysis of the current trends as well as a more in-depth look into the Pyth Network ecosystem as a means to determine its potential future profitability. And although the current downtrend is steep, the same brings losses only for those who underestimate the further potential of Pyth Network as one of the leaders in the market of decentralized data oracles.