Pyth Network was selected by the US government to assist in the distribution of economic data on the blockchain. This decision led to a significant increase in the token's price.
Selection of Pyth Network by the US Government
On August 28, the US Department of Commerce announced the start of publishing official economic data on the blockchain. Pyth Network was chosen to assist in verifying and distributing these data alongside Chainlink. Data including the US Gross Domestic Product (GDP) is already published on several blockchains such as Bitcoin, Ethereum, and Solana.
PYTH Price Rally Following the Announcement
Following the announcement, the price of PYTH surged by over 90% within 24 hours, reaching $0.22. The token gained over 95% in the last 7 days, with trading volume exceeding $2.1 billion. Analysts noted a bullish divergence on the MACD indicator, suggesting a potential uptrend in prices.
Derivatives Data Signals Market Shift
Data on PYTH futures indicated consistent selling pressure from late July to mid-August. From August 20 onward, the data turned neutral, and on August 28, a spike in buying activity was noted. Despite this surge, data indicated that 'smart money' was selling off over $166,000 worth of PYTH, suggesting profit-taking after the sharp price movement.
The selection of Pyth Network for distributing US economic data marks an important step in integrating blockchain technology into government accounting processes, which, in turn, influences the market behavior of the token.
