How Pyth Continues to Challenge Chainlink as a Leading Crypto Oracle

As the crypto ecosystem continues its evolution, oracle networks like Pyth are laying the groundwork for the next generation of decentralized finance.

Led by Mike Cahill, CEO of Douro Labs, Pyth Network has been at the forefront of innovation, championing real-time data feeds that power DeFi applications across over 85 blockchains. In an exclusive interview for Coinage’s Crypto Project of the Year series, Cahill shared insights into Pyth’s mission, its achievements in 2024, and its ambitious roadmap for the future.

This year, Coinage is highlighting the best projects in crypto as part of our annual Crypto Project of the Year celebration. Our members will vote on which one of the 16 nominated projects will win the crown. Head to Coinage's Snapshot to vote — ( you'll need a Coinage Caucus or Network NFT.)

“Pyth is all about providing one of the pillars to create DeFi onchain,” Cahill explained, adding that finance at its core has three components: a price, an exchange, and settlement. Pyth delivers the price component, ensuring the fastest and best financial data is available for financial applications. As the project has grown, it's continued to eat into Chainlink's dominance.

Unlike traditional oracles, which prioritize trust at the expense of speed, Pyth has optimized both, leveraging first-party data directly from leading exchanges and trading firms. This approach has not only enhanced latency but also expanded Pyth’s applicability beyond crypto prices, creating a foundation for a global financial market where equities, bonds, and commodities can trade seamlessly on-chain.

2024 has been a transformative year for Pyth, marked by a 1,362% year-over-year growth in Total Transaction Volume (TTV), a key metric that highlights the real-world demand for Pyth’s data feeds. “A lot of people ask us, ‘At what point will you flip Chainlink?’ That’s something we did long ago with regards to the volume secured,” Cahill noted.

By looking at things from a perspective of Total Value Secured (TVS) to TTV underscores Pyth’s commitment to high-frequency, transaction-driven applications. “This thesis around having a global unified DeFi market is being validated,” Cahill said. “The growth from 3% to 9% of the on-chain perpetual market share, relative to centralized exchanges, has been all powered by this.”

In addition to growing its influence in perpetual trading, Pyth is actively expanding its symbol list, aiming to add another 600 symbols by the end of 2024, evenly weighted between crypto assets and U.S. equities. “Our goal is to offer tens of thousands of symbols to provide a unified layer that everyone has equitable access to,” Cahill said. “That’s transformational.”

Tackling Barriers and Embracing Innovation

As Pyth scales, its mission to democratize finance is taking shape in regions where access to traditional markets is limited. Cahill cited Nigeria as an example, where residents have disproportionate exposure to Bitcoin due to regulatory restrictions on other assets. “You can provide any instrument as long as you have that price feed,” he said.

This inclusivity extends to Pyth’s technical innovations. Its pull oracle model allows applications to request data as needed, reducing latency and costs while enhancing reliability. Moreover, features like Express Relay mitigate Maximal Extractable Value (MEV), ensuring fairness in transaction sequencing.

Looking ahead, Pyth aims to push the boundaries of speed and scale. “We’re experimenting with how to bring [block times] down and increase throughput dramatically,” Cahill revealed. By leveraging Solana’s open-source advancements, Pyth plans to lower barriers for the entire industry, enabling a seamless global trading environment.

"The world of being able to create a globalized market that trades seamlessly over a DeFi application is much closer than we anticipate,” he said. He envisions a future where decentralized finance rivals traditional institutions, breaking down regional barriers and expanding access to financial markets worldwide.

As Pyth continues to lead the charge, its impact on DeFi is undeniable. From enabling cutting-edge perpetual trading to pioneering global access to financial data, the network is proving that the future of finance is decentralized, efficient, and inclusive.

Coinage NFT holders can vote to advance Pyth or Solana in our celebration of the top projects in crypto when voting opens this weekend.

Coinage members can watch our full interview with Pyth Co-founder Mike Cahill above. To support our community-owned outlet, own it with us, and unlock other exclusive benefits, mint one of our Membership Passes today! Chat with Coinage in our Discord.