"Beyond Oracle Bone Script: Moving Towards Data Infrastructure"… Messari analyzes Pyth Network's penetration into traditional markets

Messari Research( in a recent report commented that the Pyth network is surpassing the limitations of traditional oracle models, rapidly transforming into an institution-centric market data infrastructure, and playing a bridging role connecting cryptocurrencies with traditional financial markets.

When Pyth was launched in 2021, it started as an oracle providing real-time price data for decentralized finance)DeFi(, but it has now evolved into a global cross-asset data platform covering stocks, foreign exchange)FX(, commodities, interest rates, and other assets. Its core approach is to directly collect price information from exchanges and market makers to offer lower latency and higher precision upstream data access. This represents a top-down supply model that replaces the reuse of aggregated data sources.

According to Messari Research, this evolution was concretized with the release of Pyth Pro. This product goes beyond original crypto assets, providing millisecond-resolution data for stocks, ETFs, commodities, and other assets, and offers data licensing and redistribution rights to institutional clients. In its first month after launch, its annual recurring revenue)ARR( exceeded $1 million, and Pyth also serves as the exclusive on-chain distribution partner for Blue Ocean ATS’s overnight US stock data.

Alongside these technological expansions, the most notable change is in its economic structure. Launched in December 2025, the PYTH Reserve)PYTH Reserve( is a buyback model that allocates about 33% of Pyth product suite revenues to repurchase PYTH tokens on the open market. This aims to create a positive feedback loop between network profitability and the token ecosystem, offering an alternative to purely inflationary incentives. Additionally, PYTH, as the main tool responsible for network governance, acts as an economic lever to coordinate publisher incentives and fee structures.

In the traditional oracle market, Pyth has achieved significant breakthroughs. By 2025, its cumulative trading volume exceeded $23 billion, integrating over 650 on-chain applications with a total value locked (TVL) of over $6 billion, accounting for approximately 5.9% of the global oracle market. Institutions providing price data include Jane Street, Jump Trading, Optiver, Cboe, and more than 125 others. Messari Research commented, “High adoption in real markets forms the foundation of its economic structure.”

Pyth’s practical use cases are diverse. Major DeFi platforms on Solana such as Jupiter Lend, Kamino, SuiLend, and Drift Trade rely on Pyth’s reliable price data streams. Additionally, Avantis offers leveraged trading of physical assets like gold and oil through Pyth oracles.

In institutional channels, Pyth also shows active performance. Coinbase International Exchange has introduced high-speed data streams via Pyth Lazer, and financial firms like Revolut, Kalshi, Etherea have integrated Pyth.

Pyth’s core strategy involves interconnected data supply and usage structures. Pyth Crypto, as a completely free entry-level tier, targets developers and small to medium applications; Pyth Crypto+ offers millisecond-level specialized data; and the top-tier Pyth Pro is positioned as an institutional-grade comprehensive product. Each tier supports a dual-market model, ensuring on-chain price consistency while accommodating regulated off-chain institutional needs.

Messari Research pointed out that Pyth’s economic pathway is fundamentally different from traditional market data stacks. In traditional models, downstream intermediaries capture value, whereas Pyth redistributes revenue back to data producers and internalizes the entire protocol’s value, representing a significant strategic shift.

Ultimately, the Pyth network is surpassing the framework of decentralized oracles, positioning itself as a platform aimed at reshaping the global institutional data market. This shift signifies going beyond the limitations of serving only DeFi, creating a new type of market infrastructure with the data accuracy, latency, and economic structure required by real enterprises. The data closed-loop being built by Pyth is not only a technological advancement but also has the potential to become a key gateway connecting the crypto ecosystem with the traditional financial world.