Pyth Network, a network of decentralized oracles, announced yesterday, March 17, the Pyth 24/7 Oil Index, a composite index of crude oil that is continuously updated 24 hours a day, 7 days a week.
The launch took place amid major turmoil in the oil market due to the conflict. Military conflict between the United States, Israel, and Iran in the Middle East that began on February 28th.
In this scenario, barrel prices would rise above $100, a level not seen since 2022, due in part to the partial closure of the Strait of Hormuz, through which about 20% of the world’s oil passes.
Index eliminates interruptions
Unlike traditional oil price sources that rely on a single exchange or market window, Closed outside of business hoursthe new index aggregates data on and off the blockchain from exchanges, institutions, and professional trading firms to generate constantly updated, real-time prices (details explained by the Pyth Network team).
“The result is a unique index designed to reflect oil prices across different markets, platforms and global time zones, without disruptions, closures or stale data,” the group said.
Large trading companies and market makers publish data directly to the network in real time. “This bottom-up data flow provides the network with a holistic view of global liquidity across both traditional commodity markets and on-chain derivatives markets,” they explain.
In this way, the network retrieves prices from institutional tables and exchanges during normal hours, and during nights, weekends, and holidays. chain platform they work tirelessly . This move is in contrast to NYMEX’s West Texas Intermediate (WTI) futures, which trade only during U.S. business hours and stop updating at the close of trading, while risk exposure and global activity last 24 hours a day.
The disconnect is becoming increasingly difficult to ignore. During many of these periods, major reference markets remain closed. Prices are not updated. Traders, exchanges, and risk management systems operate with outdated data or no data at all.
pais network
The reaction to the release was not very good.
While this index represents a breakthrough in real-time data availability, the native PYTH token It recorded a decline of 2.5% in the past 24 hours. And it is trading at $0.048.
This trend toward continuous availability of oil prices is not limited to Pyth Network. It is rapidly expanding into the decentralized finance ecosystem. Tokenized platforms and derivatives seek to fill the same timing and liquidity gaps that impact traditional markets.
According to a report by CriptoNoticias, the trading volume of the CL-USDC perpetual contract, which tracks the price of West Texas Intermediate (WTI) and operates on the DeFi platform Hyperliquid, exceeded $1.2 billion. In this case, this is not an unusual occurrence, as the hyperliquid contract acts as a tokenized derivative and is exposed to oil prices 24 hours a day, 7 days a week.
in a certain world merchandise As geopolitical dynamics increase instability, oracles like Pyth are increasing their access to institutional data.These tools are positioned as an alternative to constant coverage in the face of current volatility..
