The Pyth Network's recent PYTH token airdrop has garnered attention, commencing with an initial market capitalization of $765 million before stabilizing at $457 million.

The token's journey from an opening trade at $0.53, briefly dropping to $0.28, and currently steadying above $0.30, reflects dynamic market forces.

Token Dynamics

Pyth Network's token supply strategy involves incremental increases, starting with an initial circulating supply of 1.5 billion tokens.

This will progressively expand to a total supply of 10 billion over a three-year timeline.

The airdrop, offering 250 million tokens, has resulted in a distribution of over $77 million to early users.

Claiming the Airdrop

Of the 90,000 eligible wallets, approximately 35,000 have claimed their share in the Pyth airdrop.

Diverse candidates, ranging from decentralised app users to Pyth NFT holders and Discord administrators, have until February 18 to finalise their token claims.

Additionally, the Backpack exchange has contributed to the token distribution by airdropping PYTH to users who recently staked SOL.

Backpack's Participation

Backpack, under the leadership of FTX's former general counsel, executed an airdrop to 74,000 wallets.

NFT holders from Backpack's Mad Lads collection on Solana also qualify for token distribution. The specifics regarding the source of the tokens were not immediately available as Decrypt reached out for additional details.

Pyth Network operates as a decentralised finance (DeFi) oracle, connecting blockchains with off-chain data sources. This connectivity enables smart contracts in the DeFi space to execute based on real-world data and events.

Currently holding the position of the fourth-largest oracle network, Pyth commands a market share of 4.75%, reflecting a slight decrease from the previous week's 4.83%.