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U.S Government Taps Blockchain – Here’s Why PYTH’s Price Rallyed and LINK’s Didn’t
The recent surge in Pyth Network (PYTH) is making headlines, particularly in light of the United States government announcing its adoption of blockchain technology. While Chainlink (LINK) initially reacted positively to this news, it has since taken a downturn. This disparity raises questions as to what drove PYTH’s price up and LINK’s down.
The key factor here may be Pyth Network’s smaller market capitalization. As the U.S government selected PYTH for its blockchain-based data distribution initiative, the token saw a massive 91% surge in just 24 hours. On the other hand, Chainlink’s Open Interest (OI) fell by 5.2%, further adding to the gap between the two tokens’ performance.
The data also suggests that Bitcoin’s price action could be another crucial factor in this divergence. As Bitcoin’s (BTC) strength waned, LINK’s price reacted negatively, plummeting 1.36% within a day. In contrast, PYTH did not appear to be directly impacted by BTC’s downturn, as the token continued to soar.
The U.S government has chosen Chainlink for a blockchain-based data distribution initiative to provide macroeconomic data such as Real GDP Level and Percentage Change, PCE Price Index, and Real Final Sales to Private Domestic Purchasers. The data will be updated monthly or quarterly, depending on the data type.
It is essential to note that PYTH’s 1-day chart displayed a bullish structure, while LINK’s did not, implying that investor sentiment may have played a role in the outcome.
Source: ambcrypto.com
